HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
NASDAQ:HQY - US42226A1079 - Common Stock
89.82 USD
-1.24 (-1.36%)
89.82 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HQY. HQY was compared to 101 industry peers in the Health Care Providers & Services industry. HQY has an excellent profitability rating, but there are some minor concerns on its financial health. HQY is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make HQY suitable for growth 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.
The reported net income has been mixed in the past 5 years: HQY reported negative net income in multiple years.
HQY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, HQY is in the better half of the industry, outperforming 68.27% of the companies in the same industry.
HQY has a better Return On Equity (5.74%) than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 5.81%, HQY is doing good in the industry, outperforming 61.54% of the companies in the same industry.
HQY had an Average Return On Invested Capital over the past 3 years of 3.06%. This is significantly below the industry average of 9.15%.
The last Return On Invested Capital (5.81%) for HQY is above the 3 year average (3.06%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.74% | ||
| ROIC | 5.81% |
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
With an excellent Profit Margin value of 9.80%, HQY belongs to the best of the industry, outperforming 94.23% of the companies in the same industry.
In the last couple of years the Profit Margin of HQY has grown nicely.
With an excellent Operating Margin value of 19.59%, HQY belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
In the last couple of years the Operating Margin of HQY has declined.
The Gross Margin of HQY (65.52%) is better than 85.58% of its industry peers.
HQY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.59% | ||
| PM (TTM) | 9.8% | ||
| GM | 65.52% |
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
HQY has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HQY is higher compared to a year ago.
2.2 Solvency
HQY has an Altman-Z score of 4.42. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
HQY has a better Altman-Z score (4.42) than 76.92% of its industry peers.
HQY has a debt to FCF ratio of 12.07. This is a negative value and a sign of low solvency as HQY would need 12.07 years to pay back of all of its debts.
HQY has a Debt to FCF ratio (12.07) which is in line with its industry peers.
A Debt/Equity ratio of 0.50 indicates that HQY is not too dependend on debt financing.
HQY has a better Debt to Equity ratio (0.50) than 60.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 12.07 | ||
| Altman-Z | 4.42 |
ROIC/WACC0.69
WACC8.44%
2.3 Liquidity
HQY has a Current Ratio of 4.06. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 4.06, HQY belongs to the best of the industry, outperforming 91.35% of the companies in the same industry.
HQY has a Quick Ratio of 4.06. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 4.06, HQY belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.06 |
3. Growth
3.1 Past
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.91%, 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 12.72% on average per year.
The Revenue has grown by 19.21% in the past year. This is quite good.
Measured over the past years, HQY shows a quite strong growth in Revenue. The Revenue has been growing by 17.66% on average per year.
EPS 1Y (TTM)28.91%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%21.25%
Revenue 1Y (TTM)19.21%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%15.04%
3.2 Future
The Earnings Per Share is expected to grow by 17.85% on average over the next years. This is quite good.
HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.75% yearly.
EPS Next Y19.88%
EPS Next 2Y19.2%
EPS Next 3Y17.85%
EPS Next 5YN/A
Revenue Next Year9.12%
Revenue Next 2Y9.01%
Revenue Next 3Y8.75%
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
With a Price/Earnings ratio of 27.22, HQY can be considered very expensive at the moment.
HQY's Price/Earnings ratio is a bit cheaper when compared to the industry. HQY is cheaper than 61.54% of the companies in the same industry.
HQY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.24, which is the current average of the S&P500 Index.
HQY is valuated rather expensively with a Price/Forward Earnings ratio of 20.20.
Based on the Price/Forward Earnings ratio, HQY is valued a bit cheaper than 61.54% of the companies in the same industry.
HQY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 20.2 |
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.
HQY's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 88.75 | ||
| EV/EBITDA | 21.04 |
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 17.85% in the coming years.
PEG (NY)1.37
PEG (5Y)2.14
EPS Next 2Y19.2%
EPS Next 3Y17.85%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.82
-1.24 (-1.36%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners107.89%
Inst Owner Change-2.62%
Ins Owners1.57%
Ins Owner Change0.64%
Market Cap7.77B
Analysts85.56
Price Target124.28 (38.37%)
Short Float %5.68%
Short Ratio4.95
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)1
Avg EPS beat(2)6.31%
Min EPS beat(2)-5.01%
Max EPS beat(2)17.64%
EPS beat(4)3
Avg EPS beat(4)10.37%
Min EPS beat(4)-5.01%
Max EPS beat(4)21.92%
EPS beat(8)7
Avg EPS beat(8)12.64%
EPS beat(12)10
Avg EPS beat(12)11.26%
EPS beat(16)12
Avg EPS beat(16)8.67%
Revenue beat(2)2
Avg Revenue beat(2)1.22%
Min Revenue beat(2)0.88%
Max Revenue beat(2)1.57%
Revenue beat(4)4
Avg Revenue beat(4)2.26%
Min Revenue beat(4)0.88%
Max Revenue beat(4)4.24%
Revenue beat(8)8
Avg Revenue beat(8)1.71%
Revenue beat(12)12
Avg Revenue beat(12)1.56%
Revenue beat(16)14
Avg Revenue beat(16)1.05%
PT rev (1m)0%
PT rev (3m)9.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.26%
EPS NY rev (1m)0%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.22 | ||
| Fwd PE | 20.2 | ||
| P/S | 6.25 | ||
| P/FCF | 88.75 | ||
| P/OCF | 22.9 | ||
| P/B | 3.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.04 |
EPS(TTM)3.3
EY3.67%
EPS(NY)4.45
Fwd EY4.95%
FCF(TTM)1.01
FCFY1.13%
OCF(TTM)3.92
OCFY4.37%
SpS14.37
BVpS24.56
TBVpS-8.14
PEG (NY)1.37
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 5.74% | ||
| ROCE | 7.38% | ||
| ROIC | 5.81% | ||
| ROICexc | 6.37% | ||
| ROICexgc | 103.99% | ||
| OM | 19.59% | ||
| PM (TTM) | 9.8% | ||
| GM | 65.52% | ||
| FCFM | 7.04% |
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%
ROICexcg growth 3Y56.29%
ROICexcg 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-Score7
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 12.07 | ||
| Debt/EBITDA | 2.6 | ||
| Cap/Depr | 155.09% | ||
| Cap/Sales | 20.24% | ||
| Interest Coverage | 4.02 | ||
| Cash Conversion | 83.6% | ||
| Profit Quality | 71.85% | ||
| Current Ratio | 4.06 | ||
| Quick Ratio | 4.06 | ||
| Altman-Z | 4.42 |
F-Score7
WACC8.44%
ROIC/WACC0.69
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)28.91%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%21.25%
EPS Next Y19.88%
EPS Next 2Y19.2%
EPS Next 3Y17.85%
EPS Next 5YN/A
Revenue 1Y (TTM)19.21%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%15.04%
Revenue Next Year9.12%
Revenue Next 2Y9.01%
Revenue Next 3Y8.75%
Revenue Next 5YN/A
EBIT growth 1Y67.59%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year223.42%
EBIT Next 3Y61.83%
EBIT Next 5YN/A
FCF growth 1Y-27.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y93.69%
OCF growth 3Y34.08%
OCF growth 5Y26.48%