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HQY

HealthEquity NasdaqGS:HQY Stock Report

Last Price

US$66.81

Market Cap

US$5.6b

7D

-2.5%

1Y

-19.8%

Updated

26 Jun, 2022

Data

Company Financials +
HQY fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance0/6
Financial Health1/6
Dividends0/6

HQY Stock Overview

HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States.

HealthEquity Competitors

Price History & Performance

Summary of all time highs, changes and price drops for HealthEquity
Historical stock prices
Current Share PriceUS$66.81
52 Week HighUS$83.72
52 Week LowUS$36.81
Beta1.08
1 Month Change6.39%
3 Month Change2.38%
1 Year Change-19.83%
3 Year Change2.16%
5 Year Change34.08%
Change since IPO279.60%

Recent News & Updates

May 24
These 4 Measures Indicate That HealthEquity (NASDAQ:HQY) Is Using Debt Extensively

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

HQYUS HealthcareUS 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

Is HQY's price volatile compared to industry and market?
HQY volatility
HQY Average Weekly Movement5.2%
Healthcare Industry Average Movement9.5%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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

FoundedEmployeesCEOWebsite
20023,702Jon Kesslerhttps://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

How do HealthEquity's earnings and revenue compare to its market cap?
HQY fundamental statistics
Market CapUS$5.64b
Earnings (TTM)-US$55.31m
Revenue (TTM)US$778.03m

7.2x

P/S Ratio

-101.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HQY income statement (TTM)
RevenueUS$778.03m
Cost of RevenueUS$346.27m
Gross ProfitUS$431.76m
Other ExpensesUS$487.08m
Earnings-US$55.31m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.66
Gross Margin55.49%
Net Profit Margin-7.11%
Debt/Equity Ratio50.1%

How did HQY perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HQY undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation 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.

HQY key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue8.3x
Enterprise Value/EBITDA37.2x
PEG Ration/a

Price to Sales Ratio vs Peers

How does HQY's PS Ratio compare to its peers?

HQY PS Ratio vs Peers
The above table shows the PS ratio for HQY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average2x
PGNY Progyny
5.2x27.6%US$2.8b
MOH Molina Healthcare
0.6x5.0%US$15.7b
ALHC Alignment Healthcare
1.8x18.1%US$2.2b
CNC Centene
0.4x2.9%US$48.5b
HQY HealthEquity
7.2x11.6%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.

HQY PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio7.2x
Fair PS Ratio4.1x

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

4/6

Future 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


Discover growth companies

Past Performance

How has HealthEquity performed over the past 5 years?

Past Performance Score

0/6

Past 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

1/6

Financial 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

0/6

Dividend 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/04/30
Annual Earnings2022/01/31


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.