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 solid track record.

Risks

  • HealthEquity has significant price volatility in the past 3 months.

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

0.1%

NasdaqGS:HQY

0.4%

US Healthcare

2.9%

US Market


1 Year Return

-29.8%

NasdaqGS:HQY

-5.6%

US Healthcare

0.2%

US Market

HQY underperformed the Healthcare industry which returned -6.1% over the past year.

HQY underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

HQYIndustryMarket
7 Day0.1%0.4%2.9%
30 Day-23.0%-1.7%-2.3%
90 Day-11.3%2.8%3.1%
1 Year-29.8%-29.8%-4.2%-5.6%2.4%0.2%
3 Year100.9%100.9%28.6%23.3%41.7%32.4%
5 Year216.0%216.0%67.8%57.9%55.1%37.9%

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

43%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, and at a substantial discount (> 40%).


Price Based on Earnings

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

HealthEquity earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

HealthEquity is overvalued based on assets compared to the US Healthcare industry average.


Next Steps

Future Growth

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

-7.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

HealthEquity's revenue is expected to grow by 17% yearly, however this is not considered high growth (20% yearly).

HealthEquity's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

HealthEquity's revenue growth is expected to exceed the United States of America market average.

HealthEquity's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

HealthEquity's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if HealthEquity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has HealthEquity performed over the past 5 years?

49.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (66.6% vs 49.9%)

HealthEquity's earnings growth has exceeded the US Healthcare industry average in the past year (66.6% vs 5.3%).


Return on Equity

HealthEquity has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

HealthEquity used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.


Return on Capital Employed

HealthEquity has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is HealthEquity's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

HealthEquity has no debt.

HealthEquity currently has no debt however we can't compare to 5 years ago as we have no data for that period.

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.


Balance Sheet

Low level of unsold assets.

HealthEquity has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Jon Kessler (51yo)

5.5yrs

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 served as its Chief Executive Officer for four ...


CEO Compensation Analysis

Jon's remuneration is about average for companies of similar size in United States of America.

Jon's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.9yrs

Average Tenure

48.5yo

Average Age

The tenure for the HealthEquity management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

57yo

Average Age

The tenure for the HealthEquity board of directors is about average.


Insider Trading

More shares have been bought than sold by HealthEquity individual insiders 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: 12.5yrs
    • Compensation: US$1.86m
  • Jon Kessler (51yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$4.81m
  • Stephen Neeleman (51yo)

    Founder & Vice Chairman

    • Tenure: 5.5yrs
    • Compensation: US$1.87m
  • Ashley Dreier (46yo)

    Executive VP

    • Tenure: 6.5yrs
    • Compensation: US$2.99m
  • Brad Bennion

    Senior Vice President of Corporate Development

    • Tenure: 2.3yrs
  • Ted Bloomberg (43yo)

    Executive VP & COO

    • Tenure: 1.0yrs
    • Compensation: US$2.46m
  • Delano Ladd (38yo)

    Executive VP

    • Tenure: 2.9yrs
    • Compensation: US$1.53m
  • Bill Otten (54yo)

    Executive Vice President of Sales

    • Tenure: 2.3yrs
    • Compensation: US$2.09m
  • Richard Putnam

    Vice President of Investor Relations

    • Tenure: 0.0yrs
  • Adam Hostetter (38yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 0.3yrs

Board Members

  • Adrian Dillon (65yo)

    Director

    • Tenure: 2.9yrs
    • Compensation: US$205.00k
  • Bob Selander (69yo)

    Non-Executive Chairman

    • Tenure: 3.9yrs
    • Compensation: US$305.00k
  • Evelyn Dilsaver (63yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$245.00k
  • Frank Corvino (70yo)

    Director

    • Tenure: 5.1yrs
    • Compensation: US$205.00k
  • Jon Kessler (51yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$4.81m
  • Stephen Neeleman (51yo)

    Founder & Vice Chairman

    • Tenure: 5.5yrs
    • Compensation: US$1.87m
  • Ian Sacks (48yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$210.00k
  • Frank Medici (56yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$220.00k
  • Gayle Wellborn (58yo)

    Director

    • Tenure: 2.0yrs
    • Compensation: US$205.00k
  • Debra McCowan (47yo)

    Director

    • Tenure: 1.3yrs
    • 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$4.322b
  • Shares outstanding: 70.49m
  • 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 Analysis2019/08/22 00:39
End of Day Share Price2019/08/21 00:00
Earnings2019/04/30
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.