HEALTHEQUITY INC (HQY) Stock Fundamental Analysis
USA - NASDAQ:HQY - US42226A1079 - Common Stock
92.49 USD
+0.15 (+0.16%)
92.49 USD
0 (0%)
Overall HQY gets a fundamental rating of 6 out of 10. We evaluated HQY 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! This makes HQY very considerable 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.
The reported net income has been mixed in the past 5 years: HQY reported negative net income in multiple years.
Each year in the past 5 years HQY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.27%, HQY is in the better half of the industry, outperforming 74.26% of the companies in the same industry.
HQY's Return On Equity of 6.79% is fine compared to the rest of the industry. HQY outperforms 65.35% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.53%, HQY is in the better half of the industry, outperforming 66.34% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 9.19%.
The last Return On Invested Capital (6.53%) for HQY is above the 3 year average (3.06%), which is a sign of increasing profitability.
| 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
HQY has a better Profit Margin (11.49%) than 96.04% of its industry peers.
In the last couple of years the Profit Margin of HQY has grown nicely.
HQY has a Operating Margin of 21.56%. This is amongst the best in the industry. HQY outperforms 97.03% of its industry peers.
HQY's Operating Margin has declined in the last couple of years.
HQY has a better Gross Margin (66.43%) than 85.15% of its industry peers.
In the last couple of years the Gross Margin of HQY has remained more or less at the same level.
| 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.
HQY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HQY has more shares outstanding
HQY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.62 indicates that HQY is not in any danger for bankruptcy at the moment.
HQY has a Altman-Z score of 4.62. This is in the better half of the industry: HQY outperforms 77.23% of its industry peers.
The Debt to FCF ratio of HQY is 3.22, which is a good value as it means it would take HQY, 3.22 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HQY (3.22) is better than 76.24% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that HQY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, HQY is in the better half of the industry, outperforming 62.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 3.22 | ||
| Altman-Z | 4.62 |
ROIC/WACC0.76
WACC8.58%
2.3 Liquidity
A Current Ratio of 4.23 indicates that HQY has no problem at all paying its short term obligations.
The Current ratio of HQY (4.23) is better than 91.09% of its industry peers.
A Quick Ratio of 4.23 indicates that HQY has no problem at all paying 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
HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.80%, which is quite impressive.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
HQY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.45%.
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)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
HQY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.66% yearly.
Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 8.89% on average per year.
EPS Next Y19.88%
EPS Next 2Y19.2%
EPS Next 3Y18.66%
EPS Next 5YN/A
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y8.89%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.28, HQY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HQY indicates a somewhat cheap valuation: HQY is cheaper than 60.40% of the companies listed in the same industry.
HQY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
Based on the Price/Forward Earnings ratio of 20.80, the valuation of HQY can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as HQY.
HQY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 20.8 |
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 | 25.45 | ||
| EV/EBITDA | 20.13 |
4.3 Compensation for Growth
HQY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HQY has a very decent profitability rating, which may justify a higher PE ratio.
HQY's earnings are expected to grow with 18.66% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)2.07
EPS Next 2Y19.2%
EPS Next 3Y18.66%
5. Dividend
5.1 Amount
HQY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.49
+0.15 (+0.16%)
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 Change0.69%
Market Cap7.97B
Analysts85.56
Price Target124.52 (34.63%)
Short Float %6.02%
Short Ratio5.51
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)0.19%
PT rev (3m)7.59%
EPS NQ rev (1m)1.47%
EPS NQ rev (3m)1.01%
EPS NY rev (1m)0%
EPS NY rev (3m)2.29%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.28 | ||
| Fwd PE | 20.8 | ||
| P/S | 6.28 | ||
| P/FCF | 25.45 | ||
| P/OCF | 21.72 | ||
| P/B | 3.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 20.13 |
EPS(TTM)3.52
EY3.81%
EPS(NY)4.45
Fwd EY4.81%
FCF(TTM)3.63
FCFY3.93%
OCF(TTM)4.26
OCFY4.6%
SpS14.73
BVpS24.91
TBVpS-7.59
PEG (NY)1.32
PEG (5Y)2.07
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%
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-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 | 4.62 |
F-Score9
WACC8.58%
ROIC/WACC0.76
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 Y19.88%
EPS Next 2Y19.2%
EPS Next 3Y18.66%
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 3Y8.89%
Revenue Next 5YN/A
EBIT growth 1Y52.7%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year223.42%
EBIT Next 3Y61.83%
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%