HEALTHEQUITY INC (HQY) Fundamental Analysis & Valuation

NASDAQ:HQY • US42226A1079

Current stock price

81.02 USD
-0.11 (-0.14%)
At close:
81.02 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.
  • 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.
  • In the past 5 years HQY always reported a positive cash flow from operatings.
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

  • HQY has a better Return On Assets (6.37%) than 84.16% of its industry peers.
  • HQY has a Return On Equity of 10.21%. This is in the better half of the industry: HQY outperforms 70.30% of its industry peers.
  • HQY has a better Return On Invested Capital (8.17%) than 76.24% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for HQY is below the industry average of 8.86%.
  • 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

  • HQY has a Profit Margin of 16.38%. This is amongst the best in the industry. HQY outperforms 99.01% of its industry peers.
  • In the last couple of years the Profit Margin of HQY has grown nicely.
  • The Operating Margin of HQY (24.93%) is better than 98.02% of its industry peers.
  • In the last couple of years the Operating Margin of HQY has grown nicely.
  • The Gross Margin of HQY (69.52%) is better than 86.14% 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

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HQY is destroying value.
  • Compared to 1 year ago, HQY has less shares outstanding
  • HQY has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, HQY has an improved debt to assets ratio.
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

  • An Altman-Z score of 4.18 indicates that HQY is not in any danger for bankruptcy at the moment.
  • HQY's Altman-Z score of 4.18 is amongst the best of the industry. HQY outperforms 80.20% of its industry peers.
  • 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.
  • HQY's Debt to FCF ratio of 2.34 is fine compared to the rest of the industry. HQY outperforms 75.25% 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 64.36% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.45
Debt/FCF 2.34
Altman-Z 4.18
ROIC/WACC0.97
WACC8.41%
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

  • A Current Ratio of 3.27 indicates that HQY has no problem at all paying its short term obligations.
  • With an excellent Current ratio value of 3.27, HQY belongs to the best of the industry, outperforming 85.15% of the companies in the same industry.
  • A Quick Ratio of 3.27 indicates that HQY has no problem at all paying its short term obligations.
  • HQY has a better Quick ratio (3.27) than 85.15% of its industry peers.
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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

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.
  • The Earnings Per Share has been growing by 19.01% on average over the past years. This is quite good.
  • The Revenue has grown by 9.47% 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 12.36% yearly.
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

  • HQY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.27% yearly.
  • HQY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.95% yearly.
EPS Next Y14.48%
EPS Next 2Y16.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.47%
Revenue Next 2Y7.95%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
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 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 1 2 3 4 5

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5

4. HQY Valuation Analysis

4.1 Price/Earnings Ratio

  • HQY is valuated rather expensively with a Price/Earnings ratio of 20.20.
  • Based on the Price/Earnings ratio, HQY is valued a bit cheaper than the industry average as 66.34% of the companies are valued more expensively.
  • HQY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.23, which is the current average of the S&P500 Index.
  • A Price/Forward Earnings ratio of 17.65 indicates a rather expensive valuation of HQY.
  • Based on the Price/Forward Earnings ratio, HQY is valued a bit cheaper than the industry average as 65.35% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 22.42. HQY is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 20.2
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

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 66.34% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.95
EV/EBITDA 15.68
HQY Per share dataHQY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • HQY has an outstanding profitability rating, which may justify a higher PE ratio.
  • HQY's earnings are expected to grow with 16.27% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.39
PEG (5Y)1.06
EPS Next 2Y16.27%
EPS Next 3YN/A

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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 (3/20/2026, 8:00:01 PM)

After market: 81.02 0 (0%)

81.02

-0.11 (-0.14%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)03-17
Earnings (Next)06-01
Inst Owners106.63%
Inst Owner Change0.07%
Ins Owners1.52%
Ins Owner Change-0.11%
Market Cap6.92B
Revenue(TTM)1.31B
Net Income(TTM)215.20M
Analysts83
Price Target120.23 (48.4%)
Short Float %3.88%
Short Ratio3.17
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)-1.05%
PT rev (3m)-3.06%
EPS NQ rev (1m)-1.06%
EPS NQ rev (3m)-0.86%
EPS NY rev (1m)-0.56%
EPS NY rev (3m)1.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-0.56%
Valuation
Industry RankSector Rank
PE 20.2
Fwd PE 17.65
P/S 5.27
P/FCF 16.95
P/OCF 15.14
P/B 3.29
P/tB N/A
EV/EBITDA 15.68
EPS(TTM)4.01
EY4.95%
EPS(NY)4.59
Fwd EY5.67%
FCF(TTM)4.78
FCFY5.9%
OCF(TTM)5.35
OCFY6.6%
SpS15.37
BVpS24.66
TBVpS-7.47
PEG (NY)1.39
PEG (5Y)1.06
Graham Number47.17
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
WACC8.41%
ROIC/WACC0.97
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 Y14.48%
EPS Next 2Y16.27%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.47%
Revenue growth 3Y15.08%
Revenue growth 5Y12.36%
Sales Q2Q%7.3%
Revenue Next Year7.47%
Revenue Next 2Y7.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y61.42%
EBIT growth 3Y105.65%
EBIT growth 5Y32.56%
EBIT Next Year97.35%
EBIT Next 3YN/A
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 of HEALTHEQUITY INC (HQY) stock?

ChartMill assigns a valuation rating of 5 / 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 8 / 10.


What are the PE and PB ratios of HEALTHEQUITY INC (HQY) stock?

The Price/Earnings (PE) ratio for HEALTHEQUITY INC (HQY) is 20.2 and the Price/Book (PB) ratio is 3.29.


How financially healthy is HEALTHEQUITY INC?

The financial health rating of HEALTHEQUITY INC (HQY) is 8 / 10.