HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. More Details
Moderate growth potential and slightly overvalued.
Share Price & News
How has HealthEquity's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
7 Day Return
1 Year Return
Return vs Industry: HQY exceeded the US Healthcare industry which returned 39.4% over the past year.
Return vs Market: HQY underperformed the US Market which returned 50.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is HealthEquity's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StAt US$77.42, Is HealthEquity, Inc. (NASDAQ:HQY) Worth Looking At Closely?
1 month ago | Simply Wall StWho Has Been Selling HealthEquity, Inc. (NASDAQ:HQY) Shares?
1 month ago | Simply Wall StEarnings Beat: HealthEquity, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Is HealthEquity undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HQY ($74.43) is trading below our estimate of fair value ($99.04)
Significantly Below Fair Value: HQY is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HQY is poor value based on its PE Ratio (625.5x) compared to the US Healthcare industry average (23.2x).
PE vs Market: HQY is poor value based on its PE Ratio (625.5x) compared to the US market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: HQY is poor value based on its PEG Ratio (10.3x)
Price to Book Ratio
PB vs Industry: HQY is overvalued based on its PB Ratio (4.2x) compared to the US Healthcare industry average (3.5x).
How is HealthEquity forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HQY's forecast earnings growth (60.9% per year) is above the savings rate (2%).
Earnings vs Market: HQY's earnings (60.9% per year) are forecast to grow faster than the US market (14.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HQY's revenue (7.8% per year) is forecast to grow slower than the US market (9% per year).
High Growth Revenue: HQY's revenue (7.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HQY's Return on Equity is forecast to be low in 3 years time (3%).
How has HealthEquity performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HQY has a large one-off loss of $40.3M impacting its January 31 2021 financial results.
Growing Profit Margin: HQY's current net profit margins (1.2%) are lower than last year (7.4%).
Past Earnings Growth Analysis
Earnings Trend: HQY's earnings have declined by 2.2% per year over the past 5 years.
Accelerating Growth: HQY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HQY had negative earnings growth (-77.5%) over the past year, making it difficult to compare to the Healthcare industry average (59.7%).
Return on Equity
High ROE: HQY's Return on Equity (0.6%) is considered low.
How is HealthEquity's financial position?
Financial Position Analysis
Short Term Liabilities: HQY's short term assets ($460.2M) exceed its short term liabilities ($204.7M).
Long Term Liabilities: HQY's short term assets ($460.2M) do not cover its long term liabilities ($1.1B).
Debt to Equity History and Analysis
Debt Level: HQY's debt to equity ratio (71.6%) is considered high.
Reducing Debt: Insufficient data to determine if HQY's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: HQY's debt is not well covered by operating cash flow (18.4%).
Interest Coverage: HQY's interest payments on its debt are not well covered by EBIT (2.4x coverage).
What is HealthEquity current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate HQY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate HQY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if HQY's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if HQY's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of HQY's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Jon Kessler (52 yo)
Mr. Jon Kessler is a Member of the Board of Managers at HealthEquity Advisors, LLC. He has been the Chief Executive Officer and President at HealthEquity, Inc. since February 2014. Mr. Kessler founded Wage...
CEO Compensation Analysis
Compensation vs Market: Jon's total compensation ($USD5.27M) is about average for companies of similar size in the US market ($USD6.51M).
Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.
Experienced Management: HQY's management team is considered experienced (3 years average tenure).
Experienced Board: HQY's board of directors are considered experienced (6.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.8%.
HealthEquity, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: HealthEquity, Inc.
- Ticker: HQY
- Exchange: NasdaqGS
- Founded: 2002
- Industry: Managed Health Care
- Sector: Healthcare
- Market Cap: US$6.206b
- Shares outstanding: 83.38m
- Website: https://www.healthequity.com
Number of Employees
- HealthEquity, Inc.
- 15 West Scenic Pointe Drive
- Suite 100
- United States
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 spendin...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/05/15 23:01|
|End of Day Share Price||2021/05/14 00:00|
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.