(HQY) HealthEquity - Ratings and Ratios
HSA, FSA, HRA, Investment, COBRA
HQY EPS (Earnings per Share)
HQY Revenue
Description: HQY HealthEquity July 25, 2025
HealthEquity Inc (NASDAQ:HQY) is a technology-enabled services platform provider catering to consumers and employers in the US. The company offers a range of services including health savings accounts, investment platforms, and automated investment advisory services. Additionally, it provides flexible spending accounts, health reimbursement arrangements, and COBRA continuation services, as well as commuter benefit programs.
To evaluate the companys performance, key performance indicators (KPIs) such as revenue growth, customer acquisition costs, and retention rates are crucial. As a managed health care company, HealthEquitys revenue is likely driven by the number of accounts it manages, as well as the assets under management. The companys investment platform and automated investment advisory services also contribute to its revenue. With a market capitalization of $8.17 billion, HealthEquitys scale and reach are significant.
From a profitability perspective, the companys return on equity (RoE) of 5.72% indicates that it generates a relatively modest return on shareholder equity. However, its forward price-to-earnings ratio of 27.17 suggests that the market expects the company to grow its earnings in the future. To further analyze the companys prospects, metrics such as its operating margin, EBITDA margin, and cash flow conversion rate would be useful.
HealthEquitys business model is likely influenced by factors such as the growing demand for health savings accounts and other consumer-directed healthcare products. The companys ability to innovate and expand its services to meet evolving customer needs will be critical to its success. With a strong sales force and network of partners, HealthEquity is well-positioned to capitalize on opportunities in the managed health care space.
HQY Stock Overview
| Market Cap in USD | 8,137m |
| Sub-Industry | Managed Health Care |
| IPO / Inception | 2014-07-31 |
HQY Stock Ratings
| Growth Rating | 19.0% |
| Fundamental | 71.3% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | -8.62% |
| Analyst Rating | 4.57 of 5 |
HQY Dividends
Currently no dividends paidHQY Growth Ratios
| Growth Correlation 3m | 47.2% |
| Growth Correlation 12m | -31.5% |
| Growth Correlation 5y | 59.8% |
| CAGR 5y | 7.49% |
| CAGR/Max DD 3y (Calmar Ratio) | 0.23 |
| CAGR/Mean DD 3y (Pain Ratio) | 0.61 |
| Sharpe Ratio 12m | 0.45 |
| Alpha | -2.44 |
| Beta | 0.471 |
| Volatility | 33.88% |
| Current Volume | 601k |
| Average Volume 20d | 826.9k |
| Stop Loss | 90.9 (-3.9%) |
| Signal | 0.31 |
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (145.8m TTM) > 0 and > 6% of Revenue (6% = 76.1m TTM) |
| FCFTA 0.10 (>2.0%) and ΔFCFTA 15.57pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 29.65% (prev 34.09%; Δ -4.44pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.11 (>3.0%) and CFO 366.9m > Net Income 145.8m (YES >=105%, WARN >=100%) |
| Net Debt (750.6m) to EBITDA (405.5m) ratio: 1.85 <= 3.0 (WARN <= 3.5) |
| Current Ratio 4.23 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (87.7m) change vs 12m ago -1.02% (target <= -2.0% for YES) |
| Gross Margin 66.43% (prev 57.61%; Δ 8.83pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 36.62% (prev 31.27%; Δ 5.34pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 3.93 (EBITDA TTM 405.5m / Interest Expense TTM 63.2m) >= 6 (WARN >= 3) |
Altman Z'' 1.61
| (A) 0.11 = (Total Current Assets 492.8m - Total Current Liabilities 116.6m) / Total Assets 3.42b |
| (B) 0.07 = Retained Earnings (Balance) 226.9m / Total Assets 3.42b |
| (C) 0.07 = EBIT TTM 248.4m / Avg Total Assets 3.47b |
| (D) 0.18 = Book Value of Equity 227.1m / Total Liabilities 1.27b |
| Total Rating: 1.61 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 71.34
| 1. Piotroski 7.50pt = 2.50 |
| 2. FCF Yield 3.82% = 1.91 |
| 3. FCF Margin 26.76% = 6.69 |
| 4. Debt/Equity 0.49 = 2.38 |
| 5. Debt/Ebitda 1.85 = 0.29 |
| 6. ROIC - WACC (= -0.99)% = -1.24 |
| 7. RoE 6.85% = 0.57 |
| 8. Rev. Trend 98.35% = 7.38 |
| 9. EPS Trend 17.03% = 0.85 |
What is the price of HQY shares?
Over the past week, the price has changed by -1.99%, over one month by -0.20%, over three months by -2.49% and over the past year by +10.94%.
Is HealthEquity a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HQY is around 88.47 USD . This means that HQY is currently overvalued and has a potential downside of -6.46%.
Is HQY a buy, sell or hold?
- Strong Buy: 9
- Buy: 4
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the HQY price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 121.8 | 28.8% |
| Analysts Target Price | 121.8 | 28.8% |
| ValueRay Target Price | 97.3 | 2.9% |
HQY Fundamental Data Overview October 31, 2025
P/E Trailing = 57.2364
P/E Forward = 20.202
P/S = 6.4122
P/B = 3.5997
P/EG = 0.8079
Beta = 0.471
Revenue TTM = 1.27b USD
EBIT TTM = 248.4m USD
EBITDA TTM = 405.5m USD
Long Term Debt = 1.01b USD (from longTermDebt, last quarter)
Short Term Debt = 9.95m USD (from shortTermDebt, last quarter)
Debt = 1.06b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 750.6m USD (from netDebt column, last quarter)
Enterprise Value = 8.89b USD (8.14b + Debt 1.06b - CCE 304.5m)
Interest Coverage Ratio = 3.93 (Ebit TTM 248.4m / Interest Expense TTM 63.2m)
FCF Yield = 3.82% (FCF TTM 339.6m / Enterprise Value 8.89b)
FCF Margin = 26.76% (FCF TTM 339.6m / Revenue TTM 1.27b)
Net Margin = 11.49% (Net Income TTM 145.8m / Revenue TTM 1.27b)
Gross Margin = 66.43% ((Revenue TTM 1.27b - Cost of Revenue TTM 426.0m) / Revenue TTM)
Gross Margin QoQ = 71.38% (prev 67.80%)
Tobins Q-Ratio = 2.60 (Enterprise Value 8.89b / Total Assets 3.42b)
Interest Expense / Debt = 1.42% (Interest Expense 15.0m / Debt 1.06b)
Taxrate = 23.31% (18.2m / 78.0m)
NOPAT = 190.5m (EBIT 248.4m * (1 - 23.31%))
Current Ratio = 4.23 (Total Current Assets 492.8m / Total Current Liabilities 116.6m)
Debt / Equity = 0.49 (Debt 1.06b / totalStockholderEquity, last quarter 2.15b)
Debt / EBITDA = 1.85 (Net Debt 750.6m / EBITDA 405.5m)
Debt / FCF = 2.21 (Net Debt 750.6m / FCF TTM 339.6m)
Total Stockholder Equity = 2.13b (last 4 quarters mean from totalStockholderEquity)
RoA = 4.27% (Net Income 145.8m / Total Assets 3.42b)
RoE = 6.85% (Net Income TTM 145.8m / Total Stockholder Equity 2.13b)
RoCE = 7.93% (EBIT 248.4m / Capital Employed (Equity 2.13b + L.T.Debt 1.01b))
RoIC = 5.99% (NOPAT 190.5m / Invested Capital 3.18b)
WACC = 6.99% (E(8.14b)/V(9.19b) * Re(7.75%) + D(1.06b)/V(9.19b) * Rd(1.42%) * (1-Tc(0.23)))
Discount Rate = 7.75% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 8.05%
Shares Correlation 3-Years: 33.33 | Cagr: 0.36%
[DCF Debug] Terminal Value 70.46% ; FCFE base≈339.6m ; Y1≈223.0m ; Y5≈102.0m
Fair Price DCF = 23.26 (DCF Value 2.00b / Shares Outstanding 86.2m; 5y FCF grow -40.0% → 3.0% )
EPS Correlation: 17.03 | EPS CAGR: -49.67% | SUE: -4.0 | # QB: 0
Revenue Correlation: 98.35 | Revenue CAGR: 16.11% | SUE: 1.32 | # QB: 8
Additional Sources for HQY Stock
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Fund Manager Positions: Dataroma | Stockcircle