| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 0/6 |
| Financial Health | 1/6 |
| Dividends | 0/6 |
HQY Stock Overview
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States.
HealthEquity Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$66.81 |
| 52 Week High | US$83.72 |
| 52 Week Low | US$36.81 |
| Beta | 1.08 |
| 1 Month Change | 6.39% |
| 3 Month Change | 2.38% |
| 1 Year Change | -19.83% |
| 3 Year Change | 2.16% |
| 5 Year Change | 34.08% |
| Change since IPO | 279.60% |
Recent News & Updates
These 4 Measures Indicate That HealthEquity (NASDAQ:HQY) Is Using Debt Extensively
Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...
Shareholder Returns
| HQY | US Healthcare | US Market | |
|---|---|---|---|
| 7D | -2.5% | 7.8% | 6.6% |
| 1Y | -19.8% | 2.5% | -18.4% |
Return vs Industry: HQY underperformed the US Healthcare industry which returned 2.4% over the past year.
Return vs Market: HQY underperformed the US Market which returned -18.4% over the past year.
Price Volatility
| HQY volatility | |
|---|---|
| HQY Average Weekly Movement | 5.2% |
| Healthcare Industry Average Movement | 9.5% |
| Market Average Movement | 8.1% |
| 10% most volatile stocks in US Market | 16.6% |
| 10% least volatile stocks in US Market | 3.2% |
Stable Share Price: HQY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: HQY's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2002 | 3,702 | Jon Kessler | https://www.healthequity.com |
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company offers cloud-based platforms for individuals to make health saving and spending decisions, pay healthcare bills, compare treatment options and prices, receive personalized benefit and clinical information, earn wellness incentives, grow their savings, and make investment choices; and health savings accounts. It also provides mutual fund investment platform; and online-only automated investment advisory services through Advisor, a Web-based tool.
HealthEquity Fundamentals Summary
| HQY fundamental statistics | |
|---|---|
| Market Cap | US$5.64b |
| Earnings (TTM) | -US$55.31m |
| Revenue (TTM) | US$778.03m |
7.2x
P/S Ratio-101.9x
P/E RatioIs HQY overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HQY income statement (TTM) | |
|---|---|
| Revenue | US$778.03m |
| Cost of Revenue | US$346.27m |
| Gross Profit | US$431.76m |
| Other Expenses | US$487.08m |
| Earnings | -US$55.31m |
Last Reported Earnings
Apr 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | -0.66 |
| Gross Margin | 55.49% |
| Net Profit Margin | -7.11% |
| Debt/Equity Ratio | 50.1% |
How did HQY perform over the long term?
See historical performance and comparisonValuation
Is HQY undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
1/6Valuation Score 1/6
Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio
Key Valuation Metric
Which metric is best to use when looking at relative valuation for HQY?
Other financial metrics that can be useful for relative valuation.
| What is HQY's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$5.64b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 8.3x |
| Enterprise Value/EBITDA | 37.2x |
| PEG Ratio | n/a |
Price to Sales Ratio vs Peers
How does HQY's PS Ratio compare to its peers?
| HQY PS Ratio vs Peers |
|---|
| Company | PS | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 2x | ||
PGNY Progyny | 5.2x | 27.6% | US$2.8b |
MOH Molina Healthcare | 0.6x | 5.0% | US$15.7b |
ALHC Alignment Healthcare | 1.8x | 18.1% | US$2.2b |
CNC Centene | 0.4x | 2.9% | US$48.5b |
HQY HealthEquity | 7.2x | 11.6% | US$5.6b |
Price-To-Sales vs Peers: HQY is expensive based on its Price-To-Sales Ratio (7.2x) compared to the peer average (2x).
Price to Earnings Ratio vs Industry
How does HQY's PE Ratio compare vs other companies in the US Healthcare Industry?
Price-To-Sales vs Industry: HQY is expensive based on its Price-To-Sales Ratio (7.2x) compared to the US Healthcare industry average (1.4x)
Price to Sales Ratio vs Fair Ratio
What is HQY's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PS Ratio | 7.2x |
| Fair PS Ratio | 4.1x |
Price-To-Sales vs Fair Ratio: HQY is expensive based on its Price-To-Sales Ratio (7.2x) compared to the estimated Fair Price-To-Sales Ratio (4.1x).
Share Price vs Fair Value
What is the Fair Price of HQY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: HQY ($66.81) is trading below our estimate of fair value ($68.6)
Significantly Below Fair Value: HQY is trading below fair value, but not by a significant amount.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HQY's PEG Ratio to determine if it is good value.
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Future Growth
How is HealthEquity forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
109.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HQY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).
Earnings vs Market: HQY is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: HQY is expected to become profitable in the next 3 years.
Revenue vs Market: HQY's revenue (11.6% per year) is forecast to grow faster than the US market (8.4% per year).
High Growth Revenue: HQY's revenue (11.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if HQY's Return on Equity is forecast to be high in 3 years time
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Past Performance
How has HealthEquity performed over the past 5 years?
Past Performance Score
0/6Past Performance Score 0/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
-48.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HQY is currently unprofitable.
Growing Profit Margin: HQY is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: HQY is unprofitable, and losses have increased over the past 5 years at a rate of 48.2% per year.
Accelerating Growth: Unable to compare HQY's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: HQY is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (9.8%).
Return on Equity
High ROE: HQY has a negative Return on Equity (-2.98%), as it is currently unprofitable.
Discover strong past performing companies
Financial Health
How is HealthEquity's financial position?
Financial Health Score
1/6Financial Health Score 1/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: HQY's short term assets ($278.9M) exceed its short term liabilities ($117.7M).
Long Term Liabilities: HQY's short term assets ($278.9M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: HQY's net debt to equity ratio (41.4%) is considered high.
Reducing Debt: Insufficient data to determine if HQY's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HQY's debt is not well covered by operating cash flow (12.6%).
Interest Coverage: HQY's interest payments on its debt are not well covered by EBIT (0.8x coverage).
Balance Sheet
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Dividend
What is HealthEquity current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HQY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HQY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HQY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HQY's dividend payments have been increasing.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as HQY has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
1.2yrs
Average management tenure
CEO
Jon Kessler (53 yo)
8.33yrs
Tenure
US$9,947,622
Compensation
Mr. Jon Kessler is a Member of the Board of Managers at HealthEquity Advisors, LLC. He has been the Chief Executive Officer and President of HealthEquity, Inc. since February 2014. Mr. Kessler founded Wage...
CEO Compensation Analysis
Compensation vs Market: Jon's total compensation ($USD9.95M) is about average for companies of similar size in the US market ($USD8.23M).
Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: HQY's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.
Board Members
Experienced Board: HQY's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HQY insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
HealthEquity, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: HealthEquity, Inc.
- Ticker: HQY
- Exchange: NasdaqGS
- Founded: 2002
- Industry: Managed Health Care
- Sector: Healthcare
- Implied Market Cap: US$5.637b
- Shares outstanding: 84.37m
- Website: https://www.healthequity.com
Number of Employees
Location
- HealthEquity, Inc.
- 15 West Scenic Pointe Drive
- Suite 100
- Draper
- Utah
- 84020
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/06/26 00:00 |
| End of Day Share Price | 2022/06/24 00:00 |
| Earnings | 2022/04/30 |
| Annual Earnings | 2022/01/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.