HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
USA - NASDAQ:HQY - US42226A1079 - Common Stock
96.17 USD
-0.33 (-0.34%)
96 USD
-0.17 (-0.18%)
HQY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 industry peers in the Health Care Providers & Services industry. HQY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HQY is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make HQY a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
HQY had positive earnings in the past year.
In the past year HQY had a positive cash flow from operations.
In multiple years HQY reported negative net income over the last 5 years.
In the past 5 years HQY always reported a positive cash flow from operatings.
1.2 Ratios
HQY has a better Return On Assets (4.27%) than 73.27% of its industry peers.
HQY has a Return On Equity of 6.79%. This is in the better half of the industry: HQY outperforms 64.36% of its industry peers.
HQY has a Return On Invested Capital of 6.53%. This is in the better half of the industry: HQY outperforms 65.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 9.28%.
The 3 year average ROIC (3.06%) for HQY is below the current ROIC(6.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 6.79% | ||
| ROIC | 6.53% |
ROA(3y)1.24%
ROA(5y)0.52%
ROE(3y)1.98%
ROE(5y)0.84%
ROIC(3y)3.06%
ROIC(5y)2.55%
1.3 Margins
The Profit Margin of HQY (11.49%) is better than 95.05% of its industry peers.
In the last couple of years the Profit Margin of HQY has grown nicely.
With an excellent Operating Margin value of 21.56%, HQY belongs to the best of the industry, outperforming 97.03% of the companies in the same industry.
In the last couple of years the Operating Margin of HQY has declined.
HQY has a Gross Margin of 66.43%. This is amongst the best in the industry. HQY outperforms 85.15% of its industry peers.
HQY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.56% | ||
| PM (TTM) | 11.49% | ||
| GM | 66.43% |
OM growth 3Y46.64%
OM growth 5Y-3.79%
PM growth 3YN/A
PM growth 5Y1.57%
GM growth 3Y4.97%
GM growth 5Y1.12%
2. Health
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.
Compared to 1 year ago, HQY has more shares outstanding
Compared to 5 years ago, HQY has more shares outstanding
Compared to 1 year ago, HQY has a worse debt to assets ratio.
2.2 Solvency
HQY has an Altman-Z score of 4.79. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HQY (4.79) is better than 78.22% of its industry peers.
HQY has a debt to FCF ratio of 3.22. This is a good value and a sign of high solvency as HQY would need 3.22 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.22, HQY is doing good in the industry, outperforming 76.24% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that HQY is not too dependend on debt financing.
HQY has a better Debt to Equity ratio (0.47) than 62.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.79 |
ROIC/WACC0.71
WACC9.15%
2.3 Liquidity
A Current Ratio of 4.23 indicates that HQY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 4.23, HQY belongs to the top of the industry, outperforming 91.09% of the companies in the same industry.
HQY has a Quick Ratio of 4.23. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.23, HQY belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.80% over the past year.
HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
The Revenue has grown by 15.45% in the past year. This is quite good.
HQY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.66% yearly.
EPS 1Y (TTM)21.8%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%25.58%
Revenue 1Y (TTM)15.45%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%8.64%
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 19.11% on average per year.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.00% yearly.
EPS Next Y24.59%
EPS Next 2Y20.39%
EPS Next 3Y19.11%
EPS Next 5YN/A
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.32 indicates a quite expensive valuation of HQY.
HQY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.08. HQY is around the same levels.
HQY is valuated rather expensively with a Price/Forward Earnings ratio of 21.20.
Based on the Price/Forward Earnings ratio, HQY is valued a bit cheaper than 60.40% 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 23.09.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 21.2 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HQY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.46 | ||
| EV/EBITDA | 20.93 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of HQY may justify a higher PE ratio.
A more expensive valuation may be justified as HQY's earnings are expected to grow with 19.11% in the coming years.
PEG (NY)1.11
PEG (5Y)2.15
EPS Next 2Y20.39%
EPS Next 3Y19.11%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
96.17
-0.33 (-0.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners108.01%
Inst Owner Change0.11%
Ins Owners1.59%
Ins Owner Change-0.46%
Market Cap8.29B
Revenue(TTM)1.27B
Net Income(TTM)145.84M
Analysts85.56
Price Target124.52 (29.48%)
Short Float %5.02%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)16.92%
Min EPS beat(2)16.19%
Max EPS beat(2)17.64%
EPS beat(4)3
Avg EPS beat(4)8.94%
Min EPS beat(4)-5.01%
Max EPS beat(4)17.64%
EPS beat(8)7
Avg EPS beat(8)13.43%
EPS beat(12)11
Avg EPS beat(12)12.69%
EPS beat(16)12
Avg EPS beat(16)9.07%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.56%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)1.34%
Min Revenue beat(4)0.56%
Max Revenue beat(4)2.35%
Revenue beat(8)8
Avg Revenue beat(8)1.72%
Revenue beat(12)12
Avg Revenue beat(12)1.59%
Revenue beat(16)14
Avg Revenue beat(16)1%
PT rev (1m)0%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.55%
EPS NQ rev (3m)0.92%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)3.93%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)1.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.32 | ||
| Fwd PE | 21.2 | ||
| P/S | 6.53 | ||
| P/FCF | 26.46 | ||
| P/OCF | 22.58 | ||
| P/B | 3.86 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.93 |
EPS(TTM)3.52
EY3.66%
EPS(NY)4.54
Fwd EY4.72%
FCF(TTM)3.63
FCFY3.78%
OCF(TTM)4.26
OCFY4.43%
SpS14.73
BVpS24.91
TBVpS-7.59
PEG (NY)1.11
PEG (5Y)2.15
Graham Number44.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.27% | ||
| ROE | 6.79% | ||
| ROCE | 8.29% | ||
| ROIC | 6.53% | ||
| ROICexc | 7.2% | ||
| ROICexgc | 110.54% | ||
| OM | 21.56% | ||
| PM (TTM) | 11.49% | ||
| GM | 66.43% | ||
| FCFM | 24.68% |
ROA(3y)1.24%
ROA(5y)0.52%
ROE(3y)1.98%
ROE(5y)0.84%
ROIC(3y)3.06%
ROIC(5y)2.55%
ROICexc(3y)3.42%
ROICexc(5y)2.86%
ROICexgc(3y)66.66%
ROICexgc(5y)61.07%
ROCE(3y)3.88%
ROCE(5y)3.24%
ROICexgc growth 3Y56.29%
ROICexgc growth 5Y6.43%
ROICexc growth 3Y65.75%
ROICexc growth 5Y6.63%
OM growth 3Y46.64%
OM growth 5Y-3.79%
PM growth 3YN/A
PM growth 5Y1.57%
GM growth 3Y4.97%
GM growth 5Y1.12%
F-Score9
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 34.21% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 4.56 | ||
| Cash Conversion | 85.18% | ||
| Profit Quality | 214.73% | ||
| Current Ratio | 4.23 | ||
| Quick Ratio | 4.23 | ||
| Altman-Z | 4.79 |
F-Score9
WACC9.15%
ROIC/WACC0.71
Cap/Depr(3y)138.38%
Cap/Depr(5y)119.74%
Cap/Sales(3y)20.19%
Cap/Sales(5y)18.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.8%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%25.58%
EPS Next Y24.59%
EPS Next 2Y20.39%
EPS Next 3Y19.11%
EPS Next 5YN/A
Revenue 1Y (TTM)15.45%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%8.64%
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y9%
Revenue Next 5YN/A
EBIT growth 1Y52.7%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year230.75%
EBIT Next 3Y62.19%
EBIT Next 5YN/A
FCF growth 1Y85.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y73.01%
OCF growth 3Y34.08%
OCF growth 5Y26.48%
HEALTHEQUITY INC / HQY FAQ
What is the ChartMill fundamental rating of HEALTHEQUITY INC (HQY) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HQY.
Can you provide the valuation status for HEALTHEQUITY INC?
ChartMill assigns a valuation rating of 4 / 10 to HEALTHEQUITY INC (HQY). This can be considered as Fairly Valued.
How profitable is HEALTHEQUITY INC (HQY) stock?
HEALTHEQUITY INC (HQY) has a profitability rating of 7 / 10.
What is the expected EPS growth for HEALTHEQUITY INC (HQY) stock?
The Earnings per Share (EPS) of HEALTHEQUITY INC (HQY) is expected to grow by 24.59% in the next year.
Is the dividend of HEALTHEQUITY INC sustainable?
The dividend rating of HEALTHEQUITY INC (HQY) is 0 / 10 and the dividend payout ratio is 0%.