HQY Stock Analysis: HealthEquity | NASDAQ
Health Information Services | NASDAQ, USA | Market Cap: 7.886m USD | 12M Return: 2.2% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 75.0M
EPS Trend: 97.8%
Qual. Beats: 1
Rev. Trend: 98.7%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 230.7m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 12.19 > 1.0 |
| NWC/Revenue: 24.74% < 20% (prev 28.68%; Δ -3.94% < -1%) |
| CFO/TA 0.15 > 3% & CFO 489.9m > Net Income 230.7m |
| Net Debt (761.3m) to EBITDA (458.5m): 1.66 < 3 |
| Current Ratio: 3.44 > 1.5 & < 3 |
| Outstanding Shares: last quarter (85.0m) vs 12m ago -3.86% < -2% |
| Gross Margin: 72.70% > 18% (prev 58.59%; Δ 14.11% > 0.5%) |
| Asset Turnover: 39.78% > 50% (prev 36.39%; Δ 3.40% > 0%) |
| Interest Coverage Ratio: 6.01 > 6 (EBIT TTM 330.0m / Interest Expense TTM 54.9m) |
| A: 0.10 (Total Current Assets 466.5m - Total Current Liabilities 135.7m) / Total Assets 3.31b |
| B: 0.05 (Retained Earnings 177.2m / Total Assets 3.31b) |
| C: 0.10 (EBIT TTM 330.0m / Avg Total Assets 3.36b) |
| D: 1.63 (Book Value of Equity 2.05b / Total Liabilities 1.26b) |
| Altman-Z'' = 3.20 = A |
| DSRI: 0.98 (Receivables 122.0m/116.3m, Revenue 1.34b/1.24b) |
| GMI: 0.81 (GM 58.59% / 72.70%) |
| AQI: 1.00 (AQ_t 0.85 / AQ_t-1 0.85) |
| SGI: 1.08 (Revenue 1.34b / 1.24b) |
| TATA: -0.08 (NI 230.7m - CFO 489.9m) / TA 3.31b) |
| Beneish M = -3.18 (Cap -4..+1) = AA |
As of July 31, 2026, the stock is trading at USD 100.99 with a total of 604,730 shares traded. Over the past week, the price has changed by +7.06%, over one month by +15.01%, over three months by +23.94% and over the past year by +2.22%.
Current recommended Stop Loss: 96.40 (which is 4.5% or 1.5 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 | 118.2 | 17% |
P/E Trailing = 36.0038
P/E Forward = 20.284
P/S = 5.8974
P/B = 3.8522
P/EG = 1.3511
Revenue TTM = 1.34b USD
EBIT TTM = 330.0m USD
EBITDA TTM = 458.5m USD
Long Term Debt = 942.7m USD (from longTermDebt, last quarter)
Short Term Debt = 9.92m USD (from shortTermDebt, last quarter)
Debt = 1.03b USD (from shortLongTermDebtTotal, last quarter) + Leases 42.0m
Net Debt = 761.3m USD (calculated: Debt 1.03b - CCE 265.4m)
Enterprise Value = 8.65b USD (7.89b + Debt 1.03b - CCE 265.4m)
Interest Coverage Ratio = 6.01 (Ebit TTM 330.0m / Interest Expense TTM 54.9m)
EV/FCF = 17.73x (Enterprise Value 8.65b / FCF TTM 487.6m)
FCF Yield = 5.64% (FCF TTM 487.6m / Enterprise Value 8.65b)
FCF Margin = 36.47% (FCF TTM 487.6m / Revenue TTM 1.34b)
Net Margin = 17.25% (Net Income TTM 230.7m / Revenue TTM 1.34b)
Gross Margin = 72.70% ((Revenue TTM 1.34b - Cost of Revenue TTM 365.1m) / Revenue TTM)
Gross Margin QoQ = 72.27% (prev 92.40%)
Tobins Q-Ratio = 2.62 (Enterprise Value 8.65b / Total Assets 3.31b)
Interest Expense / Debt = 5.34% (Interest Expense 54.9m / Debt 1.03b)
Taxrate = 22.81% (68.2m / 298.9m)
NOPAT = 254.7m (EBIT 330.0m * (1 - 22.81%))
Current Ratio = 3.44 (Total Current Assets 466.5m / Total Current Liabilities 135.7m)
Debt / Equity = 0.50 (Debt 1.03b / totalStockholderEquity, last quarter 2.05b)
Debt / EBITDA = 1.66 (Net Debt 761.3m / EBITDA 458.5m)
Debt / FCF = 1.56 (Net Debt 761.3m / FCF TTM 487.6m)
Total Stockholder Equity = 2.11b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.86% (Net Income 230.7m / Total Assets 3.31b)
RoE = 10.94% (Net Income TTM 230.7m / Total Stockholder Equity 2.11b)
RoCE = 10.81% (EBIT 330.0m / Capital Employed (Equity 2.11b + L.T.Debt 942.7m))
RoIC = 8.18% (NOPAT 254.7m / Invested Capital 3.11b)
WACC = 6.76% (E(7.89b)/V(8.91b) * Re(7.10%) + D(1.03b)/V(8.91b) * Rd(5.34%) * (1-Tc(0.23)))
Discount Rate = 7.10% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -63.65 | Cagr: -1.24%
[DCF] Terminal Value 77.97% ; FCFF base≈327.6m ; Y1≈375.5m ; Y5≈552.7m
[DCF] Fair Price = 90.37 (EV 8.32b - Net Debt 761.3m = Equity 7.56b / Shares 83.6m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 97.76 | EPS CAGR: 34.18% | SUE: 1.86 | # QB: 1
Revenue Correlation: 98.65 | Revenue CAGR: 14.69% | SUE: 0.53 | # QB: 0
EPS current Quarter (2026-07-31): EPS=1.19 | Chg30d=-0.03% | Revisions=+29% | Analysts=14
EPS next Quarter (2026-10-31): EPS=1.15 | Chg30d=-0.47% | Revisions=-17% | Analysts=14
EPS current Year (2027-01-31): EPS=4.72 | Chg30d=-0.28% | Revisions=+12% | GrowthEPS=+18.0% | GrowthRev=+7.7%
EPS next Year (2028-01-31): EPS=5.45 | Chg30d=-0.80% | Revisions=+0% | GrowthEPS=+15.4% | GrowthRev=+7.7%
[Analyst] Revisions Ratio: +11% (up=9, down=7)