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.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.8%

HQY

3.4%

US Healthcare

2.8%

US Market


1 Year Return

-5.1%

HQY

21.3%

US Healthcare

9.3%

US Market

Return vs Industry: HQY underperformed the US Healthcare industry which returned 21.3% over the past year.

Return vs Market: HQY underperformed the US Market which returned 9.3% over the past year.


Shareholder returns

HQYIndustryMarket
7 Day3.8%3.4%2.8%
30 Day21.0%9.0%8.9%
90 Day-10.3%5.7%-0.5%
1 Year-5.1%-5.1%23.0%21.3%11.8%9.3%
3 Year28.2%28.2%37.2%31.0%31.4%22.7%
5 Year127.7%127.7%48.4%38.3%58.7%40.9%

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?

36.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HQY ($62.17) is trading below our estimate of fair value ($97.61)

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 (105.1x) compared to the Healthcare industry average (24.9x).

PE vs Market: HQY is poor value based on its PE Ratio (105.1x) compared to the US market (15.7x).


Price to Earnings Growth Ratio

PEG Ratio: HQY is poor value based on its PEG Ratio (51.8x)


Price to Book Ratio

PB vs Industry: HQY is overvalued based on its PB Ratio (4.3x) compared to the US Healthcare industry average (2.8x).


Next Steps

Future Growth

How is HealthEquity forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HQY's forecast earnings growth (2% per year) is below the savings rate (2.2%).

Earnings vs Market: HQY's earnings (2% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: HQY's earnings are forecast to grow, but not significantly.

Revenue vs Market: HQY's revenue (13.8% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: HQY's revenue (13.8% 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 (14.3%).


Next Steps

Past Performance

How has HealthEquity performed over the past 5 years?

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HQY has a large one-off loss of $45.2M impacting its January 31 2020 financial results.

Growing Profit Margin: HQY's current net profit margins (7.5%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: HQY's earnings have grown significantly by 33.5% 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 (-46.3%) over the past year, making it difficult to compare to the Healthcare industry average (10.5%).


Return on Equity

High ROE: HQY's Return on Equity (3.8%) is considered low.


Next Steps

Financial Health

How is HealthEquity's financial position?


Financial Position Analysis

Short Term Liabilities: HQY's short term assets ($297.3M) exceed its short term liabilities ($151.9M).

Long Term Liabilities: HQY's short term assets ($297.3M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: HQY's debt to equity ratio (118.5%) 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 (8.6%).

Interest Coverage: HQY's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


Next Steps

Dividend

What is HealthEquity's 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?

3.2yrs

Average management tenure


CEO

Jon Kessler (51yo)

6.33yrs

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 ($USD5.27M) is about average for companies of similar size in the US market ($USD5.87M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jon Kessler
President6.33yrsUS$5.27m0.51% $22.8m
Darcy Mott
Executive VP & CFO13.33yrsUS$2.07m0.056% $2.5m
Edward Bloomberg
Executive VP & COO1.83yrsUS$2.61m0.0026% $116.3k
Ashley Dreier
Executive VP7.33yrsUS$2.36m0.050% $2.2m
Richard Putnam
Vice President of Investor Relationsno datano datano data
Delano Ladd
Executive VP3.75yrsUS$1.53m0.0046% $203.3k
Jody Dietel
Senior VP of Compliance & Regulatory Affairs0.75yrno datano data
Brad Bennion
Senior Vice President of Corporate Development3.17yrsno datano data
William Otten
Executive Vice President of Sales3.08yrsUS$2.09m0.023% $1.0m
Adam Hostetter
Executive VP & Chief Marketing Officer1.17yrsno datano data

3.2yrs

Average Tenure

46yo

Average Age

Experienced Management: HQY's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jon Kessler
President6.33yrsUS$5.27m0.51% $22.8m
Adrian Dillon
Independent Director3.75yrsUS$242.50k0.036% $1.6m
Robert Selander
Independent Non-Executive Chairman4.75yrsUS$310.00k0.046% $2.0m
Evelyn Dilsaver
Independent Director5.83yrsUS$245.00k0.016% $718.6k
Frank Corvino
Independent Director5.92yrsUS$227.50k0.0064% $284.1k
Stephen Neeleman
Founder & Vice Chairman6.33yrsUS$2.06m1.13% $50.3m
Ian Sacks
Independent Director16.17yrsUS$237.50k0.21% $9.3m
Frank Medici
Independent Director13.67yrsUS$225.00k0.0076% $339.6k
Gayle Wellborn
Independent Director2.83yrsUS$227.50k0.0099% $440.3k
Debra McCowan
Independent Director2.17yrsUS$212.50k0.0094% $416.4k

5.9yrs

Average Tenure

57yo

Average Age

Experienced Board: HQY's board of directors are considered experienced (5.9 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 13.8%.


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$4.439b
  • Shares outstanding: 71.40m
  • 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 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 flexible spending accounts; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. It serves through employers; benefits brokers and advisors; and a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was founded in 2002 and is headquartered in Draper, Utah. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/02 04:44
End of Day Share Price2020/06/01 00:00
Earnings2020/01/31
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.