HQY Stock Analysis: HealthEquity | NASDAQ
Health Information Services | NASDAQ, USA | Market Cap: 7.300m USD | 12M Return: -7.2% | US42226A1079 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 80.5M
EPS Trend: 97.1%
Qual. Beats: 0
Rev. Trend: 98.0%
Qual. Beats: 0
Warnings
Tailwinds
No distinct edge detected
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
HealthEquity, Inc. (NASDAQ: HQY) is a US-based provider of technology-enabled consumer benefit platforms, best known for administering health savings accounts (HSAs) alongside complementary tax-advantaged offerings such as flexible spending accounts (FSAs), health reimbursement arrangements, COBRA continuation coverage, and pre-tax commuter programs. The company also operates an investment platform with an automated advisory tool and a marketplace giving members access to additional healthcare products and services. Distribution is conducted through a direct sales force and a broad partner channel that includes benefits brokers, health plans, benefits administrators, and retirement plan record-keepers. HealthEquity was incorporated in 2002, is headquartered in Draper, Utah, and trades as a mid-cap stock after its 2014 IPO.
As an HSA custodian, HealthEquity sits within the broader consumer-directed healthcare (CDH) market, which has grown alongside rising employer adoption of high-deductible health plans (HDHPs). HSAs are structured to offer a triple tax advantage-tax-deductible contributions, tax-free investment growth, and tax-free withdrawals for qualified medical expenses-making account administration and integrated investment capabilities a key competitive focus in the managed health care services space.
- Interest income on HSA cash boosts margins amid rate cuts
- HSA member growth and employer wins drive revenue
- WageWorks integration expands FSA and commuter benefit offerings
| Net Income: 236.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 4.48 > 1.0 |
| NWC/Revenue: 22.50% < 20% (prev 29.65%; Δ -7.16% < -1%) |
| CFO/TA 0.15 > 3% & CFO 490.2m > Net Income 236.5m |
| Net Debt (755.0m) to EBITDA (469.5m): 1.61 < 3 |
| Current Ratio: 2.99 > 1.5 & < 3 |
| Outstanding Shares: last quarter (84.0m) vs 12m ago -4.25% < -2% |
| Gross Margin: 75.21% > 18% (prev 59.96%; Δ 15.25% > 0.5%) |
| Asset Turnover: 40.73% > 50% (prev 37.14%; Δ 3.59% > 0%) |
| Interest Coverage Ratio: 6.43 > 6 (EBIT TTM 337.4m / Interest Expense TTM 52.5m) |
| A: 0.09 (Total Current Assets 460.2m - Total Current Liabilities 153.8m) / Total Assets 3.27b |
| B: 0.05 (Retained Earnings 162.6m / Total Assets 3.27b) |
| C: 0.10 (EBIT TTM 337.4m / Avg Total Assets 3.34b) |
| D: 1.55 (Book Value of Equity 1.99b / Total Liabilities 1.28b) |
| Altman-Z'' = 3.09 = A |
| DSRI: 1.02 (Receivables 122.2m/111.2m, Revenue 1.36b/1.27b) |
| GMI: 0.80 (GM 59.96% / 75.21%) |
| AQI: 1.01 (AQ_t 0.85 / AQ_t-1 0.84) |
| SGI: 1.07 (Revenue 1.36b / 1.27b) |
| TATA: -0.08 (NI 236.5m - CFO 490.2m) / TA 3.27b) |
| Beneish M = -3.14 (Cap -4..+1) = AA |
As of September 29, 2026, the stock is trading at USD 88.44 with a total of 1,482,898 shares traded. Over the past week, the price has changed by -6.43%, over one month by -8.23%, over three months by +0.72% and over the past year by -7.24%.
Current recommended Stop Loss: 81.60 (which is 7.7% or 2.4 ATR below the current price).
HealthEquity has received a consensus analysts rating of 4.57. Therefore, it is recommended to buy HQY.
- StrongBuy: 9
- Buy: 4
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 119.3 | 34.9% |
P/E Trailing = 31.8592
P/E Forward = 19.7239
P/S = 5.359
P/B = 3.7569
P/EG = 1.3157
Revenue TTM = 1.36b USD
EBIT TTM = 337.4m USD
EBITDA TTM = 469.5m USD
Long Term Debt = 931.1m USD (from longTermDebt, last quarter)
Short Term Debt = 9.97m USD (from shortTermDebt, last quarter)
Debt = 1.01b USD (from shortLongTermDebtTotal, last quarter) + Leases 40.0m
Net Debt = 755.0m USD (calculated: Debt 1.01b - CCE 256.0m)
Enterprise Value = 8.05b USD (7.30b + Debt 1.01b - CCE 256.0m)
Interest Coverage Ratio = 6.43 (Ebit TTM 337.4m / Interest Expense TTM 52.5m)
EV/FCF = 17.08x (Enterprise Value 8.05b / FCF TTM 471.7m)
FCF Yield = 5.86% (FCF TTM 471.7m / Enterprise Value 8.05b)
FCF Margin = 34.63% (FCF TTM 471.7m / Revenue TTM 1.36b)
Net Margin = 17.36% (Net Income TTM 236.5m / Revenue TTM 1.36b)
Gross Margin = 75.21% ((Revenue TTM 1.36b - Cost of Revenue TTM 337.6m) / Revenue TTM)
Gross Margin QoQ = 73.55% (prev 72.27%)
Tobins Q-Ratio = 2.46 (Enterprise Value 8.05b / Total Assets 3.27b)
Interest Expense / Debt = 5.19% (Interest Expense 52.5m / Debt 1.01b)
Taxrate = 23.39% (72.2m / 308.7m)
NOPAT = 258.5m (EBIT 337.4m * (1 - 23.39%))
Current Ratio = 2.99 (Total Current Assets 460.2m / Total Current Liabilities 153.8m)
Debt / Equity = 0.51 (Debt 1.01b / totalStockholderEquity, last quarter 1.99b)
Debt / EBITDA = 1.61 (Net Debt 755.0m / EBITDA 469.5m)
Debt / FCF = 1.60 (Net Debt 755.0m / FCF TTM 471.7m)
Total Stockholder Equity = 2.07b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.07% (Net Income 236.5m / Total Assets 3.27b)
RoE = 11.43% (Net Income TTM 236.5m / Total Stockholder Equity 2.07b)
RoCE = 11.25% (EBIT 337.4m / Capital Employed (Equity 2.07b + L.T.Debt 931.1m))
RoIC = 8.45% (NOPAT 258.5m / Invested Capital 3.06b)
WACC = 6.68% (E(7.30b)/V(8.31b) * Re(7.05%) + D(1.01b)/V(8.31b) * Rd(5.19%) * (1-Tc(0.23)))
Discount Rate = 7.05% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -85.15 | Cagr: -2.20%
[DCF] Terminal Value 77.97% ; FCFF base≈418.8m ; Y1≈480.1m ; Y5≈706.6m
[DCF] Fair Price = 119.4 (EV 10.6b - Net Debt 755.0m = Equity 9.88b / Shares 82.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.14 | EPS CAGR: 28.82% | SUE: 0.73 | # QB: 0
Revenue Correlation: 97.99 | Revenue CAGR: 13.56% | SUE: 0.31 | # QB: 0
EPS current Quarter (2026-10-31): EPS=1.15 | Chg30d=-0.21% | Revisions=-8% | Analysts=14
EPS current Year (2027-01-31): EPS=4.72 | Chg30d=+0.10% | Revisions=+30% | GrowthEPS=+18.1% | GrowthRev=+7.9%
EPS next Year (2028-01-31): EPS=5.50 | Chg30d=+0.97% | Revisions=+8% | GrowthEPS=+16.4% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: +11% (up=14, down=11)