94.07 USD
-1.43 (-1.5%)
We assign a fundamental rating of 6 out of 10 to HQY. HQY was compared to 102 industry peers in the Health Care Providers & Services industry. HQY gets an excellent profitability rating and is at the same time showing great financial health properties. HQY is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, HQY could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year HQY was profitable.
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.
1.2 Ratios
With an excellent Return On Assets value of 5.65%, HQY belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
The Return On Equity of HQY (8.99%) is better than 68.63% of its industry peers.
HQY has a Return On Invested Capital of 7.20%. This is in the better half of the industry: HQY outperforms 67.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HQY is significantly below the industry average of 9.61%.
The 3 year average ROIC (3.06%) for HQY is below the current ROIC(7.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.99% | ||
| ROIC | 7.2% |
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 (14.86%) is better than 99.02% of its industry peers.
HQY's Profit Margin has improved in the last couple of years.
HQY has a better Operating Margin (23.20%) than 97.06% of its industry peers.
HQY's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 67.72%, HQY belongs to the top of the industry, outperforming 86.27% of the companies in the same industry.
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 | 23.2% | ||
| PM (TTM) | 14.86% | ||
| GM | 67.72% |
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.
HQY has more shares outstanding than it did 5 years ago.
HQY has a worse debt/assets ratio than last year.
2.2 Solvency
HQY has an Altman-Z score of 4.76. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HQY (4.76) is better than 82.35% of its industry peers.
HQY has a debt to FCF ratio of 2.71. This is a good value and a sign of high solvency as HQY would need 2.71 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.71, HQY is doing good in the industry, outperforming 75.49% of the companies in the same industry.
HQY has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
HQY's Debt to Equity ratio of 0.46 is fine compared to the rest of the industry. HQY outperforms 62.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.71 | ||
| Altman-Z | 4.76 |
ROIC/WACC0.81
WACC8.86%
2.3 Liquidity
A Current Ratio of 4.13 indicates that HQY has no problem at all paying its short term obligations.
HQY's Current ratio of 4.13 is amongst the best of the industry. HQY outperforms 91.18% of its industry peers.
HQY has a Quick Ratio of 4.13. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
HQY has a Quick ratio of 4.13. This is amongst the best in the industry. HQY outperforms 92.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.13 | ||
| Quick Ratio | 4.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.15% over the past year.
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 12.20% 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)22.15%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%29.49%
Revenue 1Y (TTM)12.2%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%7.23%
3.2 Future
The Earnings Per Share is expected to grow by 19.06% on average over the next years. This is quite good.
Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 8.98% on average per year.
EPS Next Y24.82%
EPS Next 2Y20.42%
EPS Next 3Y19.06%
EPS Next 5YN/A
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y8.98%
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.
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
Based on the Price/Earnings ratio of 25.09, the valuation of HQY can be described as expensive.
62.75% of the companies in the same industry are more expensive than HQY, based on the Price/Earnings ratio.
HQY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.39, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 20.73, HQY is valued on the expensive side.
HQY's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, HQY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 20.73 |
4.2 Price Multiples
HQY's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HQY indicates a somewhat cheap valuation: HQY is cheaper than 63.73% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.16 | ||
| EV/EBITDA | 19.43 |
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 decent profitability rating of HQY may justify a higher PE ratio.
HQY's earnings are expected to grow with 19.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)1.97
EPS Next 2Y20.42%
EPS Next 3Y19.06%
5. Dividend
5.1 Amount
No dividends for HQY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:HQY (12/22/2025, 1:28:02 PM)
94.07
-1.43 (-1.5%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners106.2%
Inst Owner Change-0.99%
Ins Owners1.57%
Ins Owner Change-0.01%
Market Cap8.04B
Revenue(TTM)1.29B
Net Income(TTM)191.83M
Analysts84.21
Price Target124.03 (31.85%)
Short Float %5.2%
Short Ratio5.02
Dividend
| Industry Rank | Sector 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)11.96%
Min EPS beat(2)7.72%
Max EPS beat(2)16.19%
EPS beat(4)3
Avg EPS beat(4)9.14%
Min EPS beat(4)-5.01%
Max EPS beat(4)17.64%
EPS beat(8)7
Avg EPS beat(8)12.04%
EPS beat(12)11
Avg EPS beat(12)12.62%
EPS beat(16)13
Avg EPS beat(16)9.57%
Revenue beat(2)1
Avg Revenue beat(2)-0.04%
Min Revenue beat(2)-0.64%
Max Revenue beat(2)0.56%
Revenue beat(4)3
Avg Revenue beat(4)0.59%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)1.57%
Revenue beat(8)7
Avg Revenue beat(8)1.48%
Revenue beat(12)11
Avg Revenue beat(12)1.25%
Revenue beat(16)14
Avg Revenue beat(16)1.19%
PT rev (1m)0.11%
PT rev (3m)-0.39%
EPS NQ rev (1m)-3.47%
EPS NQ rev (3m)-2.95%
EPS NY rev (1m)0.1%
EPS NY rev (3m)4.13%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.09 | ||
| Fwd PE | 20.73 | ||
| P/S | 6.23 | ||
| P/FCF | 22.16 | ||
| P/OCF | 19.37 | ||
| P/B | 3.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.43 |
EPS(TTM)3.75
EY3.99%
EPS(NY)4.54
Fwd EY4.82%
FCF(TTM)4.24
FCFY4.51%
OCF(TTM)4.86
OCFY5.16%
SpS15.11
BVpS24.98
TBVpS-7.48
PEG (NY)1.01
PEG (5Y)1.97
Graham Number45.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.65% | ||
| ROE | 8.99% | ||
| ROCE | 9.14% | ||
| ROIC | 7.2% | ||
| ROICexc | 7.95% | ||
| ROICexgc | 120.82% | ||
| OM | 23.2% | ||
| PM (TTM) | 14.86% | ||
| GM | 67.72% | ||
| FCFM | 28.1% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.71 | ||
| Debt/EBITDA | 2.16 | ||
| Cap/Depr | 33.68% | ||
| Cap/Sales | 4.05% | ||
| Interest Coverage | 5.46 | ||
| Cash Conversion | 91.28% | ||
| Profit Quality | 189.06% | ||
| Current Ratio | 4.13 | ||
| Quick Ratio | 4.13 | ||
| Altman-Z | 4.76 |
F-Score9
WACC8.86%
ROIC/WACC0.81
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)22.15%
EPS 3Y33.01%
EPS 5Y12.72%
EPS Q2Q%29.49%
EPS Next Y24.82%
EPS Next 2Y20.42%
EPS Next 3Y19.06%
EPS Next 5YN/A
Revenue 1Y (TTM)12.2%
Revenue growth 3Y16.61%
Revenue growth 5Y17.66%
Sales Q2Q%7.23%
Revenue Next Year9.7%
Revenue Next 2Y8.97%
Revenue Next 3Y8.98%
Revenue Next 5YN/A
EBIT growth 1Y49.93%
EBIT growth 3Y71.01%
EBIT growth 5Y13.2%
EBIT Next Year234.11%
EBIT Next 3Y62.21%
EBIT Next 5YN/A
FCF growth 1Y105.87%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y87.54%
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 24.82% 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%.