HEALTHEQUITY INC (HQY) Fundamental Analysis & Valuation

NASDAQ:HQY • US42226A1079

Current stock price

82.4 USD
+0.37 (+0.45%)
At close:
82.4 USD
0 (0%)
After Hours:

This HQY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HQY Profitability Analysis

1.1 Basic Checks

  • HQY had positive earnings in the past year.
  • HQY had a positive operating cash flow in the past year.
  • In multiple years HQY reported negative net income over the last 5 years.
  • Each year in the past 5 years HQY had a positive operating cash flow.
HQY Yearly Net Income VS EBIT VS OCF VS FCFHQY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 200M 400M

1.2 Ratios

  • The Return On Assets of HQY (6.37%) is better than 84.00% of its industry peers.
  • Looking at the Return On Equity, with a value of 10.21%, HQY is in the better half of the industry, outperforming 72.00% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 8.17%, HQY is doing good in the industry, outperforming 78.00% of the companies in the same industry.
  • HQY had an Average Return On Invested Capital over the past 3 years of 5.50%. This is below the industry average of 8.40%.
  • The last Return On Invested Capital (8.17%) for HQY is above the 3 year average (5.50%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 6.37%
ROE 10.21%
ROIC 8.17%
ROA(3y)3.64%
ROA(5y)1.73%
ROE(3y)5.84%
ROE(5y)2.75%
ROIC(3y)5.5%
ROIC(5y)3.73%
HQY Yearly ROA, ROE, ROICHQY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 5 10 15

1.3 Margins

  • With an excellent Profit Margin value of 16.38%, HQY belongs to the best of the industry, outperforming 99.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HQY has grown nicely.
  • HQY's Operating Margin of 24.93% is amongst the best of the industry. HQY outperforms 98.00% of its industry peers.
  • In the last couple of years the Operating Margin of HQY has grown nicely.
  • HQY's Gross Margin of 69.52% is amongst the best of the industry. HQY outperforms 88.00% of its industry peers.
  • In the last couple of years the Gross Margin of HQY has grown nicely.
Industry RankSector Rank
OM 24.93%
PM (TTM) 16.38%
GM 69.52%
OM growth 3Y78.7%
OM growth 5Y17.98%
PM growth 3YN/A
PM growth 5Y68.56%
GM growth 3Y6.92%
GM growth 5Y4.19%
HQY Yearly Profit, Operating, Gross MarginsHQY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40 60

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8

2. HQY Health Analysis

2.1 Basic Checks

  • HQY has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for HQY has been reduced compared to 1 year ago.
  • HQY has more shares outstanding than it did 5 years ago.
  • HQY has a better debt/assets ratio than last year.
HQY Yearly Shares OutstandingHQY Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 20M 40M 60M 80M
HQY Yearly Total Debt VS Total AssetsHQY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B

2.2 Solvency

  • HQY has an Altman-Z score of 4.18. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.18, HQY belongs to the top of the industry, outperforming 81.00% of the companies in the same industry.
  • HQY has a debt to FCF ratio of 2.34. This is a good value and a sign of high solvency as HQY would need 2.34 years to pay back of all of its debts.
  • The Debt to FCF ratio of HQY (2.34) is better than 75.00% of its industry peers.
  • HQY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • HQY's Debt to Equity ratio of 0.45 is fine compared to the rest of the industry. HQY outperforms 64.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.34
Altman-Z 4.18
ROIC/WACC0.93
WACC8.82%
HQY Yearly LT Debt VS Equity VS FCFHQY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 500M 1B 1.5B 2B

2.3 Liquidity

  • HQY has a Current Ratio of 3.27. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of HQY (3.27) is better than 85.00% of its industry peers.
  • HQY has a Quick Ratio of 3.27. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 3.27, HQY belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.27
Quick Ratio 3.27
HQY Yearly Current Assets VS Current LiabilitesHQY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M 500M

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6

3. HQY Growth Analysis

3.1 Past

  • HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.12%, which is quite impressive.
  • Measured over the past years, HQY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 19.01% on average per year.
  • The Revenue has grown by 9.47% in the past year. This is quite good.
  • The Revenue has been growing by 12.36% on average over the past years. This is quite good.
EPS 1Y (TTM)28.12%
EPS 3Y43.75%
EPS 5Y19.01%
EPS Q2Q%37.68%
Revenue 1Y (TTM)9.47%
Revenue growth 3Y15.08%
Revenue growth 5Y12.36%
Sales Q2Q%7.3%

3.2 Future

  • Based on estimates for the next years, HQY will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.86% on average per year.
  • HQY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.24% yearly.
EPS Next Y16.45%
EPS Next 2Y15.94%
EPS Next 3Y13.86%
EPS Next 5YN/A
Revenue Next Year7.62%
Revenue Next 2Y8.02%
Revenue Next 3Y7.24%
Revenue Next 5YN/A

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
HQY Yearly Revenue VS EstimatesHQY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B
HQY Yearly EPS VS EstimatesHQY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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5

4. HQY Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 20.55 indicates a rather expensive valuation of HQY.
  • Compared to the rest of the industry, the Price/Earnings ratio of HQY indicates a somewhat cheap valuation: HQY is cheaper than 69.00% of the companies listed in the same industry.
  • HQY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.64.
  • With a Price/Forward Earnings ratio of 17.65, HQY is valued on the expensive side.
  • HQY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HQY is cheaper than 64.00% of the companies in the same industry.
  • HQY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.36.
Industry RankSector Rank
PE 20.55
Fwd PE 17.65
HQY Price Earnings VS Forward Price EarningsHQY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HQY is on the same level as its industry peers.
  • Based on the Price/Free Cash Flow ratio, HQY is valued a bit cheaper than the industry average as 67.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 17.05
EV/EBITDA 15.7
HQY Per share dataHQY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • HQY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The excellent profitability rating of HQY may justify a higher PE ratio.
  • HQY's earnings are expected to grow with 13.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.25
PEG (5Y)1.08
EPS Next 2Y15.94%
EPS Next 3Y13.86%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. HQY Dividend Analysis

5.1 Amount

  • No dividends for HQY!.
Industry RankSector Rank
Dividend Yield 0%

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HQY Fundamentals: All Metrics, Ratios and Statistics

HEALTHEQUITY INC

NASDAQ:HQY (5/1/2026, 8:00:02 PM)

After market: 82.4 0 (0%)

82.4

+0.37 (+0.45%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Industry Strength39.75
Industry Growth70.81
Earnings (Last)03-17
Earnings (Next)06-01
Inst Owners108.11%
Inst Owner Change0.41%
Ins Owners1.8%
Ins Owner Change1.17%
Market Cap6.96B
Revenue(TTM)1.31B
Net Income(TTM)215.20M
Analysts83
Price Target114.44 (38.88%)
Short Float %4.99%
Short Ratio4.3
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)6.12%
Min EPS beat(2)4.51%
Max EPS beat(2)7.72%
EPS beat(4)4
Avg EPS beat(4)11.52%
Min EPS beat(4)4.51%
Max EPS beat(4)17.64%
EPS beat(8)7
Avg EPS beat(8)11.3%
EPS beat(12)11
Avg EPS beat(12)12.63%
EPS beat(16)14
Avg EPS beat(16)10.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.59%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)-0.53%
Revenue beat(4)2
Avg Revenue beat(4)0.24%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)1.57%
Revenue beat(8)6
Avg Revenue beat(8)1.35%
Revenue beat(12)10
Avg Revenue beat(12)1.18%
Revenue beat(16)13
Avg Revenue beat(16)1.12%
PT rev (1m)-4.81%
PT rev (3m)-5.96%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-1.85%
EPS NY rev (1m)1.72%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.15%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
Industry RankSector Rank
PE 20.55
Fwd PE 17.65
P/S 5.3
P/FCF 17.05
P/OCF 15.23
P/B 3.3
P/tB N/A
EV/EBITDA 15.7
EPS(TTM)4.01
EY4.87%
EPS(NY)4.67
Fwd EY5.67%
FCF(TTM)4.83
FCFY5.87%
OCF(TTM)5.41
OCFY6.57%
SpS15.55
BVpS24.94
TBVpS-7.55
PEG (NY)1.25
PEG (5Y)1.08
Graham Number47.4394 (-42.43%)
Profitability
Industry RankSector Rank
ROA 6.37%
ROE 10.21%
ROCE 10.16%
ROIC 8.17%
ROICexc 9.07%
ROICexgc 165.46%
OM 24.93%
PM (TTM) 16.38%
GM 69.52%
FCFM 31.09%
ROA(3y)3.64%
ROA(5y)1.73%
ROE(3y)5.84%
ROE(5y)2.75%
ROIC(3y)5.5%
ROIC(5y)3.73%
ROICexc(3y)6.14%
ROICexc(5y)4.15%
ROICexgc(3y)114.74%
ROICexgc(5y)79.89%
ROCE(3y)6.84%
ROCE(5y)4.63%
ROICexgc growth 3Y86.66%
ROICexgc growth 5Y16.28%
ROICexc growth 3Y100.79%
ROICexc growth 5Y25.13%
OM growth 3Y78.7%
OM growth 5Y17.98%
PM growth 3YN/A
PM growth 5Y68.56%
GM growth 3Y6.92%
GM growth 5Y4.19%
F-Score9
Asset Turnover0.39
Health
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.34
Debt/EBITDA 1.99
Cap/Depr 31.54%
Cap/Sales 3.71%
Interest Coverage 6.27
Cash Conversion 94.81%
Profit Quality 189.74%
Current Ratio 3.27
Quick Ratio 3.27
Altman-Z 4.18
F-Score9
WACC8.82%
ROIC/WACC0.93
Cap/Depr(3y)124.26%
Cap/Depr(5y)109.32%
Cap/Sales(3y)16.82%
Cap/Sales(5y)16.48%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)28.12%
EPS 3Y43.75%
EPS 5Y19.01%
EPS Q2Q%37.68%
EPS Next Y16.45%
EPS Next 2Y15.94%
EPS Next 3Y13.86%
EPS Next 5YN/A
Revenue 1Y (TTM)9.47%
Revenue growth 3Y15.08%
Revenue growth 5Y12.36%
Sales Q2Q%7.3%
Revenue Next Year7.62%
Revenue Next 2Y8.02%
Revenue Next 3Y7.24%
Revenue Next 5YN/A
EBIT growth 1Y61.42%
EBIT growth 3Y105.65%
EBIT growth 5Y32.56%
EBIT Next Year97.63%
EBIT Next 3Y33.57%
EBIT Next 5YN/A
FCF growth 1Y346.57%
FCF growth 3Y134.85%
FCF growth 5Y36.98%
OCF growth 1Y34.5%
OCF growth 3Y44.77%
OCF growth 5Y20.27%

HEALTHEQUITY INC / HQY Fundamental Analysis FAQ

What is the ChartMill fundamental rating of HEALTHEQUITY INC (HQY) stock?

ChartMill assigns a fundamental rating of 7 / 10 to HQY.


What is the valuation status for HQY stock?

ChartMill assigns a valuation rating of 5 / 10 to HEALTHEQUITY INC (HQY). This can be considered as Fairly Valued.


Can you provide the profitability details for HEALTHEQUITY INC?

HEALTHEQUITY INC (HQY) has a profitability rating of 8 / 10.


What is the earnings growth outlook for HEALTHEQUITY INC?

The Earnings per Share (EPS) of HEALTHEQUITY INC (HQY) is expected to grow by 16.45% in the next year.


Can you provide the dividend sustainability for HQY stock?

The dividend rating of HEALTHEQUITY INC (HQY) is 0 / 10 and the dividend payout ratio is 0%.