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HealthEquity

Nasdaq:HQY
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HQY
Nasdaq
$4B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The last earnings update was 56 days ago. More info.


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HQY Share Price and Events
7 Day Returns
0.4%
NasdaqGS:HQY
2.8%
US Healthcare
0.2%
US Market
1 Year Returns
-7.7%
NasdaqGS:HQY
0.4%
US Healthcare
2.9%
US Market
HQY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
HealthEquity (HQY) 0.4% 1.3% -13% -7.7% 177.9% -
US Healthcare 2.8% 7.7% -6.7% 0.4% 23.4% 63.5%
US Market 0.2% -1.6% 2.4% 2.9% 36.1% 41%
1 Year Return vs Industry and Market
  • HQY underperformed the Healthcare industry which returned 0.4% over the past year.
  • HQY underperformed the Market in United States of America which returned 2.9% over the past year.
Price Volatility
HQY
Industry
5yr Volatility vs Market

Value

 Is HealthEquity undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of HealthEquity to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for HealthEquity.

NasdaqGS:HQY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:HQY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.688 (1 + (1- 21%) (0%))
0.791
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for NasdaqGS:HQY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for HealthEquity is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:HQY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.5%)
2019 85.25 Analyst x3 79.30
2020 81.65 Analyst x2 70.66
2021 139.30 Analyst x1 112.14
2022 174.30 Analyst x1 130.53
2023 215.60 Analyst x1 150.19
2024 262.90 Analyst x1 170.37
2025 301.46 Est @ 14.67% 181.73
2026 334.88 Est @ 11.09% 187.80
2027 363.61 Est @ 8.58% 189.69
2028 388.43 Est @ 6.82% 188.50
Present value of next 10 years cash flows $1,460.89
NasdaqGS:HQY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $388.43 × (1 + 2.73%) ÷ (7.5% – 2.73%)
$8,368.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $8,368.90 ÷ (1 + 7.5%)10
$4,061.30
NasdaqGS:HQY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,460.89 + $4,061.30
$5,522.18
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,522.18 / 62.72
$88.05
NasdaqGS:HQY Discount to Share Price
Calculation Result
Value per share (USD) From above. $88.05
Current discount Discount to share price of $69.90
= -1 x ($69.90 - $88.05) / $88.05
20.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price HealthEquity is available for.
Intrinsic value
21%
Share price is $69.9 vs Future cash flow value of $88.05
Current Discount Checks
For HealthEquity to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • HealthEquity's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • HealthEquity's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for HealthEquity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are HealthEquity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HQY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $1.20
NasdaqGS:HQY Share Price ** NasdaqGS (2019-05-22) in USD $69.9
United States of America Healthcare Industry PE Ratio Median Figure of 56 Publicly-Listed Healthcare Companies 22.38x
United States of America Market PE Ratio Median Figure of 3,085 Publicly-Listed Companies 17.79x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of HealthEquity.

NasdaqGS:HQY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HQY Share Price ÷ EPS (both in USD)

= 69.9 ÷ 1.20

58.49x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HealthEquity is overvalued based on earnings compared to the US Healthcare industry average.
  • HealthEquity is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does HealthEquity's expected growth come at a high price?
Raw Data
NasdaqGS:HQY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 58.49x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
3%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 42 Publicly-Listed Healthcare Companies 1.68x
United States of America Market PEG Ratio Median Figure of 2,123 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:HQY PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 58.49x ÷ 3%

19.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HealthEquity is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on HealthEquity's assets?
Raw Data
NasdaqGS:HQY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $7.64
NasdaqGS:HQY Share Price * NasdaqGS (2019-05-22) in USD $69.9
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.33x
United States of America Market PB Ratio Median Figure of 5,201 Publicly-Listed Companies 1.84x
NasdaqGS:HQY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HQY Share Price ÷ Book Value per Share (both in USD)

= 69.9 ÷ 7.64

9.15x

* Primary Listing of HealthEquity.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • HealthEquity is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess HealthEquity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. HealthEquity has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is HealthEquity expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is HealthEquity expected to grow at an attractive rate?
  • HealthEquity's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • HealthEquity's earnings growth is positive but not above the United States of America market average.
  • HealthEquity's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HQY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HQY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 3%
NasdaqGS:HQY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 14.9%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 6.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:HQY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HQY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-01-31 690 1
2023-01-31 575 1
2022-01-31 465 2
2021-01-31 390 79 11
2020-01-31 338 62 11
NasdaqGS:HQY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 287 113 74
2018-10-31 272 101 67
2018-07-31 258 95 61
2018-04-30 244 89 56
2018-01-31 230 82 47
2017-10-31 216 76 46
2017-07-31 202 70 41
2017-04-30 190 59 32
2017-01-31 178 46 26
2016-10-31 167 39 25
2016-07-31 155 35 24
2016-04-30 141 27 20

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • HealthEquity's earnings are expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
  • HealthEquity's revenue is expected to grow by 14.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:HQY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from HealthEquity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HQY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31
2021-01-31 1.19 1.30 1.10 9.00
2020-01-31 0.95 0.99 0.90 9.00
NasdaqGS:HQY Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 1.20
2018-10-31 1.08
2018-07-31 1.01
2018-04-30 0.92
2018-01-31 0.79
2017-10-31 0.76
2017-07-31 0.69
2017-04-30 0.55
2017-01-31 0.45
2016-10-31 0.44
2016-07-31 0.41
2016-04-30 0.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if HealthEquity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess HealthEquity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
HealthEquity has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has HealthEquity performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare HealthEquity's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • HealthEquity has delivered over 20% year on year earnings growth in the past 5 years.
  • HealthEquity's 1-year earnings growth exceeds its 5-year average (56% vs 52.1%)
  • HealthEquity's earnings growth has exceeded the US Healthcare industry average in the past year (56% vs 2.2%).
Earnings and Revenue History
HealthEquity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from HealthEquity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HQY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 287.24 73.90 62.54 35.06
2018-10-31 271.90 66.69 60.36 32.54
2018-07-31 258.20 61.48 55.84 30.72
2018-04-30 244.01 55.91 52.13 29.12
2018-01-31 229.53 47.36 48.25 27.39
2017-10-31 215.90 45.52 44.48 26.45
2017-07-31 202.47 41.05 41.89 25.80
2017-04-30 189.78 32.33 40.20 23.99
2017-01-31 178.37 26.38 38.47 22.38
2016-10-31 167.44 25.44 36.25 20.72
2016-07-31 154.64 23.52 33.24 18.93
2016-04-30 140.95 19.71 30.18 17.93
2016-01-31 126.79 16.61 27.42 16.83
2015-10-31 115.77 15.30 26.10 15.14
2015-07-31 107.08 14.23 24.27 13.54
2015-04-30 97.47 13.19 21.58 11.84
2015-01-31 87.86 12.06 18.96 10.50
2014-10-31 80.15 1.40 16.49 9.31
2014-07-31 73.53 -1.02 14.55 8.30
2014-04-30 67.62 -3.71 13.22 7.66
2014-01-31 62.02 -7.13 12.50 7.14
2013-01-31 46.09 3.99 11.16 4.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • HealthEquity has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • HealthEquity used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • HealthEquity has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess HealthEquity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
HealthEquity has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is HealthEquity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up HealthEquity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • HealthEquity is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • HealthEquity's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of HealthEquity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • HealthEquity has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from HealthEquity Company Filings, last reported 3 months ago.

NasdaqGS:HQY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 477.08 0.00 361.48
2018-10-31 456.80 0.00 330.26
2018-07-31 432.62 0.00 302.92
2018-04-30 396.97 0.00 269.84
2018-01-31 346.27 0.00 240.27
2017-10-31 334.41 0.00 225.08
2017-07-31 315.93 0.00 210.30
2017-04-30 290.84 0.00 195.56
2017-01-31 261.94 0.00 180.36
2016-10-31 252.59 0.00 165.70
2016-07-31 239.46 0.00 149.46
2016-04-30 222.74 0.00 132.93
2016-01-31 203.46 0.00 123.78
2015-10-31 198.33 0.00 125.11
2015-07-31 191.16 0.00 148.93
2015-04-30 154.57 0.00 114.90
2015-01-31 144.10 0.00 111.01
2014-10-31 140.50 0.00 107.85
2014-07-31 53.38 0.00 20.89
2014-04-30 -5.84 0.00 13.99
2014-01-31 40.19 0.00 13.92
2013-01-31 35.61 2.13 5.91
  • HealthEquity has no debt.
  • HealthEquity had no debt 5 years ago.
  • HealthEquity has no debt, it does not need to be covered by operating cash flow.
  • HealthEquity has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess HealthEquity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. HealthEquity has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is HealthEquity's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from HealthEquity dividends. Estimated to be 0% next year.
If you bought $2,000 of HealthEquity shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate HealthEquity's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate HealthEquity's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:HQY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:HQY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-01-31
2023-01-31
2022-01-31 0.00 1.00
2021-01-31 0.00 2.00
2020-01-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as HealthEquity has not reported any payouts.
  • Unable to verify if HealthEquity's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of HealthEquity's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as HealthEquity has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of HealthEquity's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess HealthEquity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can HealthEquity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. HealthEquity has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of HealthEquity's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jon Kessler
COMPENSATION $4,808,670
AGE 50
TENURE AS CEO 5.3 years
CEO Bio

Mr. Jon Kessler has been the Chief Executive Officer and President at HealthEquity, Inc. since February 2014. Mr. Kessler founded WageWorks, Inc., in 2000 and served as its Chief Executive Officer for four years. He served in the Administrations of George H. W. Bush and Bill Clinton. Mr. Kessler spent eight years with the U.S. Environmental Protection Agency in Washington, D.C., where he served as Division Director and Tax Specialist, as well as a leader in the development of current commuter benefits law. He leads the WageWorks through the first product launches, sales and early-round funding. Mr. Kessler is a recognized expert in pre-tax benefits law, with extensive experience in designing and implementing customer-centered pre-tax commuter benefits. Before founding WageWorks, he developed commuter benefits and tax treatment of corporate dependent care on behalf of Arthur Andersen. Mr. Kessler adds significant industry experience to an already talented and experienced management team. While at the EPA, he also assisted in writing the transportation provision of the Climate Change Action Plan in 1994. Mr. Kessler joined HealthEquity in early 2009, with a focus on driving the sales and marketing teams to success. Mr. Kessler served as a Senior Economist during the Clinton and Bush (Sr.) administrations and a director in the tax consulting practice at Arthur Andersen LLP. He helped write the legislation that created pre-tax commuter benefits while at the Environmental Protection Agency. Mr. Kessler is a recognized expert in benefits tax law, a principal behind relevant federal legislation and a leader in creating consumer-driven benefits for large, sophisticated companies and public organizations. He helped write current tax law governing commuter benefits and advised lawmakers on major healthcare tax proposals including HSAs, rules authorizing the use of debit cards in health care and proposals to eliminate use-or-lose restrictions on FSAs. As a principal in the tax practice of Arthur Andersen LLP, Mr. Kessler helped leading companies improve the performance of benefit programs. He serves as Board Chairman of health insurance start-up Healthcharge. He served as the Executive Chairman of HealthEquity, Inc. from March 2009 to January 2014. He has been a Director at HealthEquity, Inc. since March 2009. He serves as Director of Redwood Equity Partners, Inc. Mr. Kessler served as the Chairman and member of the Board of Directors at WageWorks since March 2004. In the early 1990's, he served as a Director in the U.S. Environmental Protection Agency's policy office, where he helped write the U.S. Climate Change Action Plan and staffed the Presidential Advisory Committee on transportation efficiency. Mr. Kessler holds a Master's Degree in public policy economics from the John F. Kennedy School of Government at Harvard University and a Bachelor's degree from George Washington University.

CEO Compensation
  • Jon's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jon's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the HealthEquity management team in years:

2.7
Average Tenure
47.5
Average Age
  • The tenure for the HealthEquity management team is about average.
Management Team

Jon Kessler

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
5.3 yrs

Stephen Neeleman

TITLE
Founder & Vice Chairman
COMPENSATION
$2M
AGE
50
TENURE
17.3 yrs

Darcy Mott

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
65
TENURE
12.3 yrs

Ted Bloomberg

TITLE
Executive VP & COO
COMPENSATION
$2M
AGE
42
TENURE
0.8 yrs

Ashley Dreier

TITLE
Executive VP
COMPENSATION
$3M
AGE
45
TENURE
6.3 yrs

Richard Putnam

TITLE
Vice President of Investor Relations

Delano Ladd

TITLE
Executive VP
COMPENSATION
$2M
AGE
37
TENURE
2.7 yrs

Brad Bennion

TITLE
Senior Vice President of Corporate Development
TENURE
2.1 yrs

Bill Otten

TITLE
Executive Vice President of Sales
COMPENSATION
$2M
AGE
53
TENURE
2 yrs

Adam Hostetter

TITLE
Executive VP & Chief Marketing Officer
AGE
37
TENURE
0.1 yrs
Board of Directors Tenure

Average tenure and age of the HealthEquity board of directors in years:

4.8
Average Tenure
56
Average Age
  • The tenure for the HealthEquity board of directors is about average.
Board of Directors

Bob Selander

TITLE
Non-Executive Chairman
COMPENSATION
$305K
AGE
68
TENURE
3.7 yrs

Jon Kessler

TITLE
President
COMPENSATION
$5M
AGE
50
TENURE
10.2 yrs

Stephen Neeleman

TITLE
Founder & Vice Chairman
COMPENSATION
$2M
AGE
50
TENURE
5.3 yrs

Frank Medici

TITLE
Director
COMPENSATION
$220K
AGE
55
TENURE
12.6 yrs

Ian Sacks

TITLE
Director
COMPENSATION
$210K
AGE
47
TENURE
15.1 yrs

Evelyn Dilsaver

TITLE
Director
COMPENSATION
$245K
AGE
62
TENURE
4.8 yrs

Frank Corvino

TITLE
Director
COMPENSATION
$205K
AGE
69
TENURE
4.8 yrs

Adrian Dillon

TITLE
Director
COMPENSATION
$205K
AGE
64
TENURE
2.7 yrs

Gayle Wellborn

TITLE
Director
COMPENSATION
$205K
AGE
57
TENURE
1.8 yrs

Debra McCowan

TITLE
Director
COMPENSATION
$343K
AGE
46
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Dec 18 Sell Frank Corvino Individual 10. Dec 18 10. Dec 18 -1,778 $67.78 $-120,508
11. Jun 18 Sell Gary Robinson Individual 07. Jun 18 07. Jun 18 -100 $80.49 $-8,049
X
Management checks
We assess HealthEquity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. HealthEquity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Are Investors Undervaluing HealthEquity, Inc. (NASDAQ:HQY) By 21%?

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $85.25 $81.65 $139.30 $174.30 $215.60 $262.90 $301.46 $334.88 $363.61 $388.43 Growth Rate Estimate Source Analyst x3 Analyst x2 Analyst x1 Analyst x1 Analyst x1 Analyst x1 Est @ 14.67% Est @ 11.09% Est @ 8.58% Est @ 6.82% Present Value ($, Millions) Discounted @ 7.5% $79.30 $70.66 $112.14 $130.53 $150.19 $170.37 $181.73 $187.80 $189.69 $188.50 Present Value of 10-year Cash Flow (PVCF)= $1.46b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 7.5%. … NasdaqGS:HQY Intrinsic value, May 16th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

How HealthEquity, Inc. (NASDAQ:HQY) Can Impact Your Portfolio Volatility

(NASDAQ:HQY), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

There's An Opportunity With HealthEquity, Inc. (NASDAQ:HQY)

And I'm not talking about buying into speculative, high-risk stocks. … Financial health. … provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States

Simply Wall St -

Why We Think HealthEquity, Inc. (NASDAQ:HQY) Could Be Worth Looking At

Upon building up an investment case for a stock, we should look at various aspects. … is a company with great financial health as well as a. … For those interested in digger a bit deeper into my commentary,

Simply Wall St -

Should You Be Tempted To Sell HealthEquity, Inc. (NASDAQ:HQY) Because Of Its P/E Ratio?

We'll show how you can use HealthEquity, Inc.'s (NASDAQ:HQY) P/E ratio to inform your assessment of the investment opportunity. … Based on the last twelve months, HealthEquity's P/E ratio is 63.51. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Why HealthEquity, Inc.'s (NASDAQ:HQY) CEO Pay Matters To You

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Jon Kessler's Compensation Compare With Similar Sized Companies. … is worth US$4.7b, and total annual CEO compensation is US$4.3m.

Simply Wall St -

Here's What HealthEquity, Inc.'s (NASDAQ:HQY) ROCE Can Tell Us

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Have Insiders Been Selling HealthEquity, Inc. (NASDAQ:HQY) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in HealthEquity, Inc. … That means that an insider was selling shares at slightly below the current price (US$79.68). … It's not ideal to see that insiders have sold at around the current price

Simply Wall St -

Is HealthEquity, Inc. (NASDAQ:HQY) Potentially Undervalued?

saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price? … However, could the stock still be trading at a relatively cheap price.

Simply Wall St -

Can You Imagine How Elated HealthEquity's Shareholders Feel About Its 302% Share Price Gain?

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … HealthEquity was able to grow its EPS at 41% per year over three years, sending the share price higher.

Simply Wall St -

Company Info

Description

HealthEquity, Inc. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party administrators in the United States. The company offers healthcare saving and spending platform, a cloud-based platform 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. In addition, the company offers health reimbursement and flexible spending arrangements solutions; and Employee Retirement Income Security Act's plan administration and investment services. HealthEquity, Inc. was founded in 2002 and is headquartered in Draper, Utah.

Details
Name: HealthEquity, Inc.
HQY
Exchange: NasdaqGS
Founded: 2002
$4,384,017,977
62,718,426
Website: http://www.healthequity.com
Address: HealthEquity, Inc.
15 West Scenic Pointe Drive,
Suite 100,
Draper,
Utah, 84020,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HQY Common Stock Nasdaq Global Select US USD 31. Jul 2014
DB 2HE Common Stock Deutsche Boerse AG DE EUR 31. Jul 2014
Number of employees
Current staff
Staff numbers
1,141
HealthEquity employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/23 06:27
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/21
Last earnings filing: 2019/03/28
Last earnings reported: 2019/01/31
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.