A Business at a Glance
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HEALTHEQUITY, INC.
HQY
$8.3B
Mkt Cap
$94.64
+0.32%
HEALTHEQUITY, INC. (HQY) has a current P/E ratio of 43.4, compared to its historical median P/E of 65.2. The stock is currently considered Cheap based on its historical valuation range.
HEALTHEQUITY, INC. (HQY) has a 5-year average return on invested capital (ROIC) of 3.2%. This is below average and may indicate limited pricing power.
HEALTHEQUITY, INC. (HQY) has a market capitalization of $7.9B. It is classified as a mid-cap stock.
HEALTHEQUITY, INC. (HQY) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 4.58%.
Based on historical P/E analysis, HEALTHEQUITY, INC. (HQY) appears cheap. The current P/E of 43.4 is 33% below its historical median of 65.2. The estimated fair value CAGR (P/E method) is 17.0%.
HEALTHEQUITY, INC. (HQY) operates in the Services-Business Services, Nec industry, within the Industrials sector.
HEALTHEQUITY, INC. (HQY) reported annual revenue of $1.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
HealthEquity is a technology-enabled administrator of health savings accounts (HSAs) and consumer-directed benefits (CDBs) including flexible spending accounts and health reimbursement arrangements, serving as the largest HSA provider by both accounts and assets as of June 2024. The company earns revenue from three primary sources: service fees paid by network partners, employers, and members for administration; custodial revenue from HSA cash held by federally insured depository partners and insurance company partners; and interchange revenue from merchant fees on payment card transactions and virtual payment systems. The business model provides strong visibility into future operating performance, with the vast majority of accounts opened before the fiscal year begins, and the company reaches consumers primarily through employer relationships and an integrated network of over 200 partners including benefits brokers, health plans, and retirement plan recordkeepers. As of January 31, 2025, HealthEquity administered 9.9 million HSAs with $32.1 billion in HSA Assets and 7.1 million complementary CDBs, leveraging proprietary technology and ecosystem connectivity to help consumers optimize healthcare spending and savings while differentiating through service quality, product breadth, and data-sharing capabilities. The company has grown its HSA market share from 4% in December 2010 to 21% as of June 2024 measured by HSA Assets, and operates in the United States market where the structural shift toward greater consumer responsibility for healthcare costs continues to expand the addressable market.
【Margin expansion and AI-driven efficiency】 Management expects continued revenue growth and sustained margin expansion in fiscal 2027, driven by technology and security investments that enhance operational efficiency and member experience. The company is deploying AI-enabled automation across targeted workflows such as card servicing and claims inquiries to reduce manual efforts by over 90% and accelerate processing times, with AI-enabled self-service contributing to reduced service center contacts and lower costs to serve. HealthEquity expects the Marketplace to become an increasingly meaningful contributor to lifetime member value over time, with additional products and services expanding engagement and introducing new recurring revenue streams. The company anticipates continued strong cash flow generation and disciplined capital allocation, including share repurchases and potential debt reduction, while maintaining flexibility for portfolio acquisitions should attractive opportunities arise. Management remains confident in the long-term growth outlook, reflecting the structural shift in healthcare costs driving employer adoption of HSAs and the compounding value of member cohorts as they accumulate assets and increase investment participation.
| Metric | Target | Period |
|---|---|---|
| Revenue | $1.41–$1.42 billion | FY2027 |
| GAAP net income | $242–$248 million | FY2027 |
| GAAP EPS | $2.88–$2.95 | FY2027 |
| Average yield on HSA cash | approximately 3.85% | FY2027 |
Revenue (FY2027): “For fiscal 2027, we now expect revenue between $1.41 and $1.42 billion.”
GAAP net income (FY2027): “GAAP net income of $242 million-$248 million, or $2.88-$2.95 per share.”
GAAP EPS (FY2027): “GAAP net income of $242 million-$248 million, or $2.88-$2.95 per share.”
Average yield on HSA cash (FY2027): “We now expect average yield on HSA cash will be approximately 3.85% during fiscal 2027.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2027 Earnings Call, Q3 FY2027 Earnings Call, Q2 FY2027 Earnings Call, Q1 FY2027 Earnings Call
| Metric | TTM | FY2026 | FY2025 | FY2024 | FY2023 | FY2022 |
|---|---|---|---|---|---|---|
| Revenue | 1.3B | 1.3B | 1.2B | 1000M | 862M | 757M |
| Net Income | 231M | 215M | 97M | 56M | -26M | -44M |
| EPS | $2.71 | $2.46 | $1.09 | $0.64 | $-0.31 | $-0.53 |
| Free Cash Flow | 488M | 455M | 338M | 241M | 147M | 132M |
| ROIC | 9.7% | 8.9% | 5.0% | 3.5% | 0.4% | -1.7% |
| Gross Margin | 70.7% | 69.5% | 64.8% | 62.3% | 57.1% | 56.1% |
| Debt/Equity | 0.46 | 0.45 | 0.50 | 0.43 | 0.49 | 0.50 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 342M | 322M | 162M | 118M | 9.1M | -24M |
| Operating Margin | 25.6% | 24.6% | 13.5% | 11.8% | 1.1% | -3.2% |
| ROE | 11.3% | 10.2% | 4.7% | 2.8% | -1.4% | -2.7% |
| Shares Outstanding | 84M | 87M | 89M | 87M | 84M | 84M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 88M | 127M | 178M | 230M | 287M | 532M | 734M | 757M | 862M | 1000M | 1.2B | 1.3B | 1.3B |
| Gross Margin | 54.6% | 57.3% | 59.6% | 58.8% | 63.1% | 61.3% | 56.6% | 56.1% | 57.1% | 62.3% | 64.8% | 69.5% | 70.7% |
| R&D | 11M | 17M | 22M | 27M | 35M | 78M | 125M | 157M | 193M | 219M | 240M | 263M | 269M |
| SG&A | 8.3M | 14M | 20M | 25M | 33M | 61M | 84M | 85M | 97M | 104M | 132M | 120M | 126M |
| EBIT | 17M | 26M | 41M | 54M | 78M | 77M | 34M | -24M | 9.1M | 118M | 162M | 322M | 342M |
| Op. Margin | 19.2% | 20.6% | 23.1% | 23.7% | 27.0% | 14.5% | 4.6% | -3.2% | 1.1% | 11.8% | 13.5% | 24.6% | 25.6% |
| Net Income | 12M | 17M | 26M | 47M | 74M | 40M | 8.8M | -44M | -26M | 56M | 97M | 215M | 231M |
| Net Margin | 13.7% | 13.1% | 14.8% | 20.6% | 25.7% | 7.5% | 1.2% | -5.9% | -3.0% | 5.6% | 8.1% | 16.4% | 17.3% |
| Non-Recurring | 0 | 0 | 0 | -597K | -103K | 28M | 0 | 1.7M | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 8.0% | 22.2% | 22.4% | 36.7% | 57.7% | 6.5% | 1.7% | -1.7% | 0.4% | 3.5% | 5.0% | 8.9% | 9.7% |
| ROE | 18.4% | 9.6% | 11.3% | 15.6% | 18.0% | 5.3% | 0.7% | -2.7% | -1.4% | 2.8% | 4.7% | 10.2% | 11.3% |
| ROA | 11.3% | 8.8% | 10.6% | 14.6% | 16.8% | 2.6% | 0.3% | -1.5% | -0.8% | 1.8% | 2.9% | 6.3% | 7.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 15M | 27M | 46M | 82M | 113M | 105M | 182M | 141M | 151M | 243M | 340M | 457M | 490M |
| Free Cash Flow | 13M | 24M | 42M | 76M | 110M | 98M | 169M | 132M | 147M | 241M | 338M | 455M | 488M |
| Owner Earnings | 6.6M | 12M | 24M | 51M | 74M | 9.8M | 23M | -49M | -73M | 13M | 81M | 229M | 258M |
| CapEx | 1.7M | 2.4M | 3.6M | 5.5M | 3.9M | 7.3M | 13M | 8.9M | 3.4M | 1.7M | 2.1M | 2.0M | 2.2M |
| Maint. CapEx | 5.9M | 8.6M | 13M | 16M | 18M | 55M | 116M | 137M | 161M | 153M | 162M | 155M | 154M |
| Growth CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 5.9M | 8.6M | 13M | 16M | 18M | 55M | 116M | 137M | 161M | 153M | 162M | 155M | 154M |
| CapEx/OCF | 11.4% | 9.0% | 8.0% | 6.7% | 3.4% | 6.9% | 7.2% | 6.3% | 2.2% | 0.7% | 0.6% | N/A | 0.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 50M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | 4.2% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 121M | 299M | 364M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.3% | 0.0% | 4.6% |
| Stock-Based Comp | 2.5M | 5.9M | 8.4M | 14M | 21M | 40M | 43M | 53M | 63M | 77M | 96M | 73M | 78M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 7.8M | 239M | 1.0B | 8.8M | 54M | 562M | 100M | 100M |
| Balance Sheet | |||||||||||||
| Net Debt | N/A | N/A | N/A | N/A | -361M | 1.0B | 658M | 705M | 671M | 471M | 760M | 638M | 677M |
| Cash & Equiv. | 111M | 84M | 140M | 199M | 361M | 192M | 329M | 225M | 254M | 404M | 296M | 319M | 265M |
| Long-Term Debt | N/A | N/A | N/A | N/A | 0 | 1.2B | 924M | 922M | 908M | 875M | 1.1B | 957M | 943M |
| Debt/Equity | 0.10 | 0.08 | 0.07 | 0.07 | 0.00 | 1.18 | 0.72 | 0.50 | 0.49 | 0.43 | 0.50 | 0.45 | 0.46 |
| Interest Coverage | N/A | 3267.9 | N/A | 198.6 | 287.7 | 3.1 | 1.0 | -0.7 | 0.2 | 2.1 | 2.7 | 5.6 | 5.6 |
| Equity | 144M | 203M | 262M | 346M | 477M | 1.0B | 1.4B | 1.9B | 1.9B | 2.0B | 2.1B | 2.1B | 2.0B |
| Total Assets | 159M | 220M | 279M | 369M | 510M | 2.6B | 2.7B | 3.1B | 3.1B | 3.2B | 3.4B | 3.4B | 3.3B |
| Total Liabilities | 15M | 16M | 17M | 23M | 33M | 1.5B | 1.3B | 1.3B | 1.2B | 1.1B | 1.3B | 1.3B | 1.3B |
| Intangibles | 27M | 67M | 65M | 84M | 80M | 783M | 767M | 973M | 936M | 836M | 1.2B | 1.1B | 1.1B |
| Retained Earnings | -13M | 3.6M | 30M | 85M | 172M | 212M | 220M | 176M | 150M | 206M | 209M | 196M | 177M |
| Working Capital | 116M | 131M | 185M | 245M | 366M | 145M | 255M | 198M | 252M | 440M | 321M | 355M | 331M |
| Current Assets | 125M | 143M | 201M | 265M | 395M | 297M | 460M | 351M | 383M | 557M | 478M | 512M | 467M |
| Current Liabilities | 8.8M | 12M | 16M | 20M | 29M | 152M | 205M | 153M | 131M | 117M | 156M | 157M | 136M |
| Per Share Data | |||||||||||||
| EPS | 0.21 | 0.28 | 0.44 | 0.77 | 1.17 | 0.58 | 0.12 | -0.53 | -0.31 | 0.64 | 1.09 | 2.46 | 2.71 |
| Owner EPS | 0.12 | 0.20 | 0.40 | 0.84 | 1.17 | 0.14 | 0.31 | -0.59 | -0.87 | 0.14 | 0.91 | 2.62 | 3.07 |
| Book Value | 2.51 | 3.43 | 4.37 | 5.63 | 7.55 | 15.07 | 18.73 | 22.17 | 22.48 | 23.38 | 23.84 | 24.09 | 24.39 |
| Cash Flow/Share | 0.26 | 0.45 | 0.76 | 1.33 | 1.80 | 1.54 | 2.47 | 1.69 | 1.79 | 2.79 | 3.83 | 5.23 | 4.59 |
| Dividends/Share | 0.88 | 0.00 | 0.00 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 57.4M | 59.3M | 59.9M | 61.5M | 63.2M | 68.4M | 73.6M | 83.6M | 84.3M | 87.0M | 88.7M | 87.5M | 83.9M |
| Valuation | |||||||||||||
| P/E Ratio | 100.8 | 75.0 | 107.7 | 65.2 | 54.0 | 124.1 | 693.8 | N/A | N/A | 120.1 | 98.8 | N/A | 34.9 |
| P/FCF | 91.2 | 51.6 | 67.7 | 40.5 | 36.4 | 50.4 | 36.4 | 32.4 | 34.5 | 27.8 | 28.3 | N/A | 16.3 |
| EV/EBIT | N/A | N/A | N/A | N/A | 42.1 | 75.3 | 191.7 | N/A | 609.5 | 57.4 | 61.7 | N/A | 25.2 |
| Price/Book | 8.4 | 6.1 | 10.8 | 8.9 | 8.4 | 4.8 | 4.4 | 2.3 | 2.7 | 3.3 | 4.5 | N/A | 3.9 |
| Price/Sales | 13.6 | 13.0 | 10.5 | 12.6 | 16.3 | 8.8 | 6.0 | 7.5 | 6.2 | 5.7 | 6.2 | N/A | 5.9 |
| FCF Yield | 1.1% | 1.9% | 1.5% | 2.5% | 2.7% | 2.0% | 2.7% | 3.1% | 2.9% | 3.6% | 3.5% | N/A | 6.1% |
| Market Cap | 1.2B | 1.2B | 2.8B | 3.1B | 4.0B | 4.9B | 6.1B | 4.3B | 5.1B | 6.7B | 9.6B | 0 | 7.9B |
| Avg. Price | 20.76 | 27.82 | 31.22 | 46.99 | 74.00 | 68.11 | 60.19 | 68.31 | 62.86 | 64.91 | 84.40 | 0.00 | 94.64 |
| Year-End Price | 21.17 | 21.00 | 47.38 | 50.20 | 63.22 | 71.99 | 83.25 | 51.28 | 60.31 | 76.87 | 107.71 | 0.00 | 94.64 |
HEALTHEQUITY, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
HEALTHEQUITY, INC. trades at 43.4x trailing earnings, compared to its 15-year median P/E of 65.2x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 19.6x vs a median of 36.4x. The company's 5-year average ROIC is 3.2% with a gross margin of 62.0%. Total shareholder yield (buybacks) is 4.6%. At current prices, the estimated annualized return to fair value is +14.6%.
HEALTHEQUITY, INC. (HQY) has a net profit margin of 16.4%. This is a healthy margin.
HEALTHEQUITY, INC. (HQY) generated $455 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HEALTHEQUITY, INC. (HQY) has a debt-to-equity ratio of 0.45. This indicates a conservatively financed balance sheet.
HEALTHEQUITY, INC. (HQY) reported earnings per share (EPS) of $2.46 in its most recent fiscal year.
HEALTHEQUITY, INC. (HQY) has a return on equity (ROE) of 10.2%. This indicates moderate shareholder returns.
HEALTHEQUITY, INC. (HQY) has a 5-year average gross margin of 62.0%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 14 years of financial data for HEALTHEQUITY, INC. (HQY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HEALTHEQUITY, INC. (HQY) has a book value per share of $24.09, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued revenue growth and sustained margin expansion in fiscal 2027, driven by technology and security investments that enhance operational efficiency and member experience. The company is deploying AI-enabled automation across targeted workflows such as card servicing and claims inquiries to reduce manual efforts by over 90% and accelerate processing times, with AI-enabled self-service contributing to reduced service center contacts and lower costs to serve. HealthEquity expects the Marketplace to become an increasingly meaningful contributor to lifetime member value over time, with additional products and services expanding engagement and introducing new recurring revenue streams. The company anticipates continued strong cash flow generation and disciplined capital allocation, including share repurchases and potential debt reduction, while maintaining flexibility for portfolio acquisitions should attractive opportunities arise. Management remains confident in the long-term growth outlook, reflecting the structural shift in healthcare costs driving employer adoption of HSAs and the compounding value of member cohorts as they accumulate assets and increase investment participation.
Based on recent SEC filings and earnings calls, HEALTHEQUITY, INC. (HQY) has provided the following forward guidance: Revenue: $1.41–$1.42 billion (FY2027); GAAP net income: $242–$248 million (FY2027); GAAP EPS: $2.88–$2.95 (FY2027); Average yield on HSA cash: approximately 3.85% (FY2027).