US42226A1079 - Common Stock

We assign a fundamental rating of **6** out of 10 to **HQY**. **HQY** was compared to 114 industry peers in the **Health Care Providers & Services** industry. Both the profitability and the financial health of **HQY** get a neutral evaluation. Nothing too spectacular is happening here. **HQY** is growing strongly while it is still valued neutral. This is a good combination! This makes **HQY** very considerable for growth investing!

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.

Each year in the past 5 years **HQY** had a positive operating cash flow.

The **Return On Equity** of **HQY** (**4.90%**) is better than **67.26%** of its industry peers.

Looking at the **Return On Invested Capital**, with a value of **3.92%**, **HQY** is in line with its industry, outperforming **56.64%** 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 **8.10%**.

The last **Return On Invested Capital** (**3.92%**) for **HQY** is above the 3 year average (**1.70%**), which is a sign of increasing profitability.

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.01% | ||

ROE | 4.9% | ||

ROIC | 3.92% |

ROA(3y)-0.17%

ROA(5y)0.27%

ROE(3y)-0.34%

ROE(5y)0.69%

ROIC(3y)1.7%

ROIC(5y)2.16%

In the last couple of years the **Operating Margin** of **HQY** has declined.

Industry Rank | Sector Rank | ||
---|---|---|---|

OM | 16.3% | ||

PM (TTM) | 9.61% | ||

GM | 65.06% |

OM growth 3Y5.53%

OM growth 5Y-13.87%

PM growth 3Y66.65%

PM growth 5Y-26.35%

GM growth 3Y3.23%

GM growth 5Y-0.25%

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so **HQY** is destroying value.

The debt/assets ratio for **HQY** has been reduced compared to a year ago.

With an excellent **Altman-Z score** value of **4.53**, **HQY** belongs to the best of the industry, outperforming **82.30%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.51 | ||

Debt/FCF | N/A | ||

Altman-Z | 4.53 |

ROIC/WACC0.46

WACC8.48%

A Current Ratio of **4.10** indicates that **HQY** has no problem at all paying its short term obligations.

Looking at the **Current ratio**, with a value of **4.10**, **HQY** belongs to the top of the industry, outperforming **92.04%** of the companies in the same industry.

Looking at the **Quick ratio**, with a value of **4.10**, **HQY** belongs to the top of the industry, outperforming **92.04%** of the companies in the same industry.

Industry Rank | Sector Rank | ||
---|---|---|---|

Current Ratio | 4.1 | ||

Quick Ratio | 4.1 |

The **Earnings Per Share** has grown by an impressive **62.36%** over the past year.

The **Revenue** has grown by **17.19%** in the past year. This is quite good.

Measured over the past years, **HQY** shows a very strong growth in **Revenue**. The Revenue has been growing by **28.33%** on average per year.

EPS 1Y (TTM)62.36%

EPS 3Y10.39%

EPS 5Y13.5%

EPS Q2Q%62.26%

Revenue 1Y (TTM)17.19%

Revenue growth 3Y10.86%

Revenue growth 5Y28.33%

Sales Q2Q%23.15%

Based on estimates for the next years, **HQY** will show a very strong growth in **Earnings Per Share**. The EPS will grow by **25.15%** on average per year.

Based on estimates for the next years, **HQY** will show a quite strong growth in **Revenue**. The Revenue will grow by **13.30%** on average per year.

EPS Next Y38.3%

EPS Next 2Y28.5%

EPS Next 3Y25.15%

EPS Next 5YN/A

Revenue Next Year18.59%

Revenue Next 2Y14.89%

Revenue Next 3Y13.3%

Revenue Next 5YN/A

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

Compared to the rest of the industry, the **Price/Earnings** ratio of **HQY** indicates a somewhat cheap valuation: **HQY** is cheaper than 61.95% of the companies listed in the same industry.

When comparing the **Price/Earnings** ratio of **HQY** to the average of the S&P500 Index (**29.30**), we can say **HQY** is valued inline with the index average.

The **Price/Forward Earnings** ratio is **26.48**, which means the current valuation is very expensive for **HQY**.

Compared to an average S&P500 **Price/Forward Earnings** ratio of **23.90**, **HQY** is valued at the same level.

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 34.19 | ||

Fwd PE | 26.48 |

Industry Rank | Sector Rank | ||
---|---|---|---|

P/FCF | N/A | ||

EV/EBITDA | 27.87 |

The decent profitability rating of **HQY** may justify a higher PE ratio.

PEG (NY)0.89

PEG (5Y)2.53

EPS Next 2Y28.5%

EPS Next 3Y25.15%

Industry Rank | Sector Rank | ||
---|---|---|---|

Dividend Yield | N/A |

**HEALTHEQUITY INC**

NASDAQ:HQY (11/8/2024, 8:00:01 PM)

After market: 98.63 -0.19 (-0.19%)**98.82**

**+1.62 (+1.67%) **

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupHealth Care Equipment & Services

GICS IndustryHealth Care Providers & Services

Earnings (Last)

Earnings (Next)

Inst Owners

Inst Owner Change

Ins Owners

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Market Cap8.63B

Analysts

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Dividend

Industry Rank | Sector Rank | ||
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Dividend Yield | N/A |

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Valuation

Industry Rank | Sector Rank | ||
---|---|---|---|

PE | 34.19 | ||

Fwd PE | 26.48 | ||

P/S | |||

P/FCF | |||

P/OCF | |||

P/B | |||

P/tB | |||

EV/EBITDA |

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PEG (NY)0.89

PEG (5Y)2.53

Profitability

Industry Rank | Sector Rank | ||
---|---|---|---|

ROA | 3.01% | ||

ROE | 4.9% | ||

ROCE | |||

ROIC | |||

ROICexc | |||

ROICexgc | |||

OM | 16.3% | ||

PM (TTM) | 9.61% | ||

GM | 65.06% | ||

FCFM |

ROA(3y)

ROA(5y)

ROE(3y)

ROE(5y)

ROIC(3y)

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ROICexc(5y)

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ROICexc growth 3Y

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PM growth 5Y

GM growth 3Y

GM growth 5Y

F-Score

Asset Turnover0.31

Health

Industry Rank | Sector Rank | ||
---|---|---|---|

Debt/Equity | 0.51 | ||

Debt/FCF | |||

Debt/EBITDA | |||

Cap/Depr | |||

Cap/Sales | |||

Interest Coverage | |||

Cash Conversion | |||

Profit Quality | |||

Current Ratio | 4.1 | ||

Quick Ratio | 4.1 | ||

Altman-Z |

F-Score

WACC

ROIC/WACC

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Cap/Depr(5y)

Cap/Sales(3y)

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High Growth Momentum

Growth

EPS 1Y (TTM)62.36%

EPS 3Y10.39%

EPS 5Y

EPS Q2Q%

EPS Next Y38.3%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)17.19%

Revenue growth 3Y10.86%

Revenue growth 5Y

Sales Q2Q%

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Revenue Next 3Y

Revenue Next 5Y

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EBIT growth 3Y

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