NasdaqGS:HQY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential and slightly overvalued.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

10.8%

HQY

1.7%

US Healthcare

0.4%

US Market


1 Year Return

-2.9%

HQY

22.7%

US Healthcare

17.8%

US Market

Return vs Industry: HQY underperformed the US Healthcare industry which returned 22.7% over the past year.

Return vs Market: HQY underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HQYIndustryMarket
7 Day10.8%1.7%0.4%
30 Day21.2%10.8%6.1%
90 Day9.3%7.6%8.9%
1 Year-2.9%-2.9%24.3%22.7%20.5%17.8%
3 Year17.6%17.6%37.2%31.4%42.3%32.9%
5 Year74.8%74.8%66.3%54.1%84.2%63.4%

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

Valuation

Is HealthEquity undervalued compared to its fair value and its price relative to the market?

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HQY ($57.66) is trading below our estimate of fair value ($74.81)

Significantly Below Fair Value: HQY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HQY is unprofitable, so we can't compare its PE Ratio to the US Healthcare industry average.

PE vs Market: HQY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate HQY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HQY is overvalued based on its PB Ratio (3.3x) compared to the US Healthcare industry average (3.2x).


Next Steps

Future Growth

How is HealthEquity forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

112.8%

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 (2.2%).

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's is expected to become profitable in the next 3 years.

Revenue vs Market: HQY's revenue (9.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: HQY's revenue (9.1% 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


Next Steps

Past Performance

How has HealthEquity performed over the past 5 years?

12.9%

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, but has reduced losses over the past 5 years at a rate of 12.9% 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 (31.2%).


Return on Equity

High ROE: HQY has a negative Return on Equity (-1.48%), as it is currently unprofitable.


Next Steps

Financial Health

How is HealthEquity's financial position?


Financial Position Analysis

Short Term Liabilities: HQY's short term assets ($383.1M) exceed its short term liabilities ($153.8M).

Long Term Liabilities: HQY's short term assets ($383.1M) do not cover its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: HQY's debt to equity ratio (75.2%) 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 (11.6%).

Interest Coverage: HQY is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Jon Kessler (52 yo)

6.67yrs

Tenure

US$5,265,794

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 at HealthEquity, Inc. since February 2014. Mr. Kessler founded Wage ...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD5.27M) is about average for companies of similar size in the US market ($USD5.60M).

Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Jon Kessler
President6.67yrsUS$5.27m0.48%
$ 21.2m
Darcy Mott
Executive VP & CFO13.67yrsUS$2.07m0.052%
$ 2.3m
Edward Bloomberg
Executive VP & COO2.17yrsUS$2.61m0.0049%
$ 216.3k
Rebecca Whitehead
Executive VP0.33yrno datano data
Richard Putnam
Vice President of Investor Relationsno datano datano data
Delano Ladd
Executive VP4.08yrsUS$1.53m0.0043%
$ 188.8k
Jody Dietel
Senior VP of Compliance & Regulatory Affairs1.08yrsno datano data
Brad Bennion
Senior Vice President of Corporate Development3.5yrsno datano data
William Otten
Executive Vice President of Sales3.42yrsUS$2.09m0.020%
$ 900.1k
Adam Hostetter
Executive VP & Chief Marketing Officer1.5yrsno data0.0036%
$ 158.7k
Natalie Atwood
Senior Vice President of Peopleno datano datano data
Steve Lindsay
Senior Vice President of Relationship Managementno datano datano data

3.4yrs

Average Tenure

48yo

Average Age

Experienced Management: HQY's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jon Kessler
President6.67yrsUS$5.27m0.48%
$ 21.2m
Adrian Dillon
Independent Director4.08yrsUS$242.50k0.034%
$ 1.5m
Robert Selander
Independent Non-Executive Chairman5.08yrsUS$310.00k0.043%
$ 1.9m
Evelyn Dilsaver
Independent Director6.17yrsUS$245.00k0.015%
$ 666.1k
Frank Corvino
Independent Director6.25yrsUS$227.50k0.0060%
$ 263.7k
Stephen Neeleman
Founder & Vice Chairman6.67yrsUS$2.06m1.05%
$ 46.7m
Ian Sacks
Independent Director16.5yrsUS$237.50k0.19%
$ 8.6m
Gayle Wellborn
Independent Director3.17yrsUS$227.50k0.0092%
$ 408.6k
Debra McCowan
Independent Director2.5yrsUS$212.50k0.0087%
$ 386.0k

6.2yrs

Average Tenure

59yo

Average Age

Experienced Board: HQY's board of directors are considered experienced (6.2 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.8%.


Top Shareholders

Company Information

HealthEquity, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: HealthEquity, Inc.
  • Ticker: HQY
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$4.432b
  • Shares outstanding: 76.86m
  • Website: https://www.healthequity.com

Number of Employees


Location

  • HealthEquity, Inc.
  • 15 West Scenic Pointe Drive
  • Suite 100
  • Draper
  • Utah
  • 84020
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HQYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2014
2HEDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014

Biography

HealthEquity, Inc. providing 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 spendi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/26 05:25
End of Day Share Price2020/10/23 00:00
Earnings2020/07/31
Annual Earnings2020/01/31


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.