NasdaqGS:HQY

Stock Analysis Report

Executive Summary

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.

Snowflake

Fundamentals

Flawless balance sheet with high growth potential.


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


Market Performance


7 Day Return

0.7%

HQY

0.5%

US Healthcare

1.0%

US Market


1 Year Return

-34.4%

HQY

-9.5%

US Healthcare

6.7%

US Market

Return vs Industry: HQY underperformed the US Healthcare industry which returned -9.5% over the past year.

Return vs Market: HQY underperformed the US Market which returned 6.7% over the past year.


Share holder returns

HQYIndustryMarket
7 Day0.7%0.5%1.0%
30 Day-10.3%-3.3%-1.8%
90 Day-25.3%-8.9%-1.8%
1 Year-34.4%-34.4%-8.1%-9.5%9.1%6.7%
3 Year47.6%47.6%29.9%24.6%46.0%36.6%
5 Year169.6%169.6%60.3%50.7%66.9%48.6%

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

49%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: HQY ($54.24) is trading below our estimate of fair value ($106.47)

Significantly Undervalued: HQY is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: HQY is poor value based on its PE Ratio (37.8x) compared to the Healthcare industry average (19.9x).

PE vs Market: HQY is poor value based on its PE Ratio (37.8x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: HQY is poor value based on its PEG Ratio (1.7x)


Price Based on Value of Assets

PB vs Industry: HQY is overvalued based on its PB Ratio (3.8x) compared to the US Healthcare industry average (2.4x).


Next Steps

Future Growth

How is HealthEquity expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

22.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: HQY's forecast earnings growth (22% per year) is above the savings rate (2.7%).

Earnings vs Market: HQY's earnings (22% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HQY's revenue (23% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: HQY's revenue (23% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: HQY's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has HealthEquity performed over the past 5 years?

46.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HQY has become profitable over the past 5 years, growing earnings by 46.9% per year.

Accelerating Growth: HQY's earnings growth over the past year (46.4%) is below its 5-year average (46.9% per year).

Earnings vs Industry: HQY earnings growth over the past year (46.4%) exceeded the Healthcare industry 5.3%.


Return on Equity

High ROE: HQY's Return on Equity (8.8%) is considered low.


Return on Assets

ROA vs Industry: HQY has a higher Return on Assets than the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: HQY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is HealthEquity's financial position?


Financial Position Analysis

Short Term Liabilities: HQY's short term assets ($853.5M) exceeds its short term liabilities ($37.1M)

Long Term Liabilities: HQY's short term assets ($853.5M) exceeds its long term liabilities ($44.2M)


Debt to Equity History and Analysis

Debt Level: HQY is debt free.

Reducing Debt: HQY had no debt 5 years ago.

Debt Coverage: HQY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: HQY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: HQY has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if HQY's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate HQY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate HQY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

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

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

3.1yrs

Average management tenure


CEO

Jon Kessler (51yo)

5.7yrs

Tenure

US$4,808,670

Compensation

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 serves as its Chief Executive Officer and Pres ...


CEO Compensation Analysis

Compensation vs. Market: Jon's total compensation ($USD4.81M) is about average for companies of similar size in the US market ($USD5.11M).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.1yrs

Average Tenure

51yo

Average Age

Experienced Management: HQY's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

57yo

Average Age

Experienced Board: HQY's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$217,81616 Jul 19
Frank Corvino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,074
Max PriceUS$70.86
BuyUS$610,00015 Jul 19
Jon Kessler
EntityIndividual
Role
Chief Executive Officer
President
Shares10,000
Max PriceUS$61.00
BuyUS$610,00015 Jul 19
Stephen Neeleman
EntityIndividual
Role
Vice Chairman
Founder & Vice Chairman
Shares10,000
Max PriceUS$61.00
BuyUS$610,00015 Jul 19
Robert Selander
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares10,000
Max PriceUS$61.00
BuyUS$610,00015 Jul 19
Adrian Dillon
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$61.00
SellUS$120,50813 Dec 18
Frank Corvino
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,778
Max PriceUS$67.78

Ownership Breakdown


Management Team

  • Darcy Mott (66yo)

    Executive VP & CFO

    • Tenure: 12.7yrs
    • Compensation: US$1.86m
  • Jon Kessler (51yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$4.81m
  • Stephen Neeleman (51yo)

    Founder & Vice Chairman

    • Tenure: 5.7yrs
    • Compensation: US$1.87m
  • Jody Dietel

    Senior VP of Compliance & Regulatory Affairs

    • Tenure: 0.08yrs
  • Ashley Dreier (46yo)

    Executive VP

    • Tenure: 6.7yrs
    • Compensation: US$2.99m
  • Brad Bennion

    Senior Vice President of Corporate Development

    • Tenure: 2.5yrs
  • Ted Bloomberg (43yo)

    Executive VP & COO

    • Tenure: 1.2yrs
    • Compensation: US$2.46m
  • Delano Ladd (38yo)

    Executive VP

    • Tenure: 3.1yrs
    • Compensation: US$1.53m
  • Bill Otten (54yo)

    Executive Vice President of Sales

    • Tenure: 2.4yrs
    • Compensation: US$2.09m
  • Richard Putnam

    Vice President of Investor Relations

    • Tenure: 0yrs

Board Members

  • Adrian Dillon (65yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$205.00k
  • Bob Selander (69yo)

    Non-Executive Chairman

    • Tenure: 4.1yrs
    • Compensation: US$305.00k
  • Evelyn Dilsaver (63yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$245.00k
  • Frank Corvino (70yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$205.00k
  • Jon Kessler (51yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$4.81m
  • Stephen Neeleman (51yo)

    Founder & Vice Chairman

    • Tenure: 5.7yrs
    • Compensation: US$1.87m
  • Ian Sacks (48yo)

    Director

    • Tenure: 15.5yrs
    • Compensation: US$210.00k
  • Frank Medici (56yo)

    Director

    • Tenure: 13yrs
    • Compensation: US$220.00k
  • Gayle Wellborn (58yo)

    Director

    • Tenure: 2.2yrs
    • Compensation: US$205.00k
  • Debra McCowan (47yo)

    Director

    • Tenure: 1.5yrs
    • Compensation: US$343.33k

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$3.830b
  • Shares outstanding: 70.62m
  • 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. provides various solutions for managing health care accounts, health reimbursement arrangements, and flexible spending accounts for health plans, insurance companies, and third-party adm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:11
End of Day Share Price2019/10/11 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.

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