HealthEquity HQY
United StatesHealthcare · Health Information ServicesUSD
119.33 USD (+29.9%)
15 analysts
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HealthEquity is a U.S. provider of health savings accounts (HSAs) and other health benefits, managing client assets and charging fees for administration and services.
Key points
from its scores- ✓Favourable backdrop9.1
- ✓Very solid balance sheet7.9
- ✓High-quality business7.1
- ✕Little or no dividend1.5
- !Somewhat demanding valuation5.3
AI analysis
bottom line, main risk, context and newsFundamentals are solid and valuation is attractive for expected growth, but the lack of clear catalysts and zero dividend limit short-term upside potential.
HealthEquity presents a solid financial profile with financial health of 7.93, quality of 7.08, and earnings growth of 14.70%, backed by a gross margin of 71.25% and a free cash flow conversion of 77.40%. Valuation is reasonable (forward P/E 16.71x, PEG 1.12) and the balance sheet is sound (ND/EBITDA 1.39x), although it pays no dividend.
The main risk is dependence on HSA regulation and the regulatory environment in the U.S., which could change the rules of the game and affect business growth.
Context and risks
HealthEquity has no material exposure to current macro factors: its HSA business generates stable cash flows, does not depend on commodities or shipping routes, and its net debt/EBITDA of 1.39x limits the impact of interest rates. The rise in long-term U.S. rates could slightly affect the value of its financial assets, but it is not a dominant factor for its valuation.
Is HealthEquity stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 18% above the Healthcare median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 33.2 | 26.7 | +24% |
| EV / EBITDA | 16.2 | 14.5 | +12% |
| Price / book | 3.8 | 4.1 | −7% |
| Price / sales | 5.6 | 3.4 | +63% |
Sector: median of the 217 Healthcare companies analysed. In bold, the multiples used for the comparison.
Valuation score: 5.3 out of 10 (median for Healthcare: 4.7).
Average analyst target: 119.33 USD, +29.9% versus the price.
A premium can be justified if the company is of higher quality or grows faster than its sector: Quality / Moat 7.1 (sector 5.5), Growth 6.6 (sector 6.6).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Healthcare medianValuation
- P/E
- 33.2
- Forward P/E
- 16.7
- EV / EBITDA
- 16.2
- Price / book
- 3.8
- Price / sales
- 5.6
- PEG
- 1.12
- Market cap
- 7.6B USD
- Enterprise value
- 8.3B USD
Profitability
- ROE
- 11.4%
- ROA
- 6.7%
- ROIC (approx.)
- 13.1%
- Gross margin
- 71.2%
- Operating margin
- 28.4%
- Net margin
- 17.4%
- Free cash flow
- 397.5M USD
- FCF yield
- 5.2%
- Cash conversion
- 77%
Solvency
- Total debt
- 971.0M USD
- Net debt
- 715.0M USD
- Cash
- 256.0M USD
- EBITDA
- 513.6M USD
- Net debt / EBITDA
- 1.39
- Debt / equity
- 48.79
- Current ratio
- 2.99
- Quick ratio
- 2.46
Growth
- Revenue growth
- +7.6%
- Earnings growth
- +14.7%
- EPS (TTM)
- 2.77 USD
- EPS (forward)
- 5.50 USD
Dividend
- Dividend yield
- 0.0%
- Payout
- 0.0%
Risk and market
- Beta
- 0.24
- Analyst consensus
- Strong buy (15)
- Target price
- 119.33 USD
- 52-week range
- 72.76 – 107.62
Recent news
All HQY news →Compare it with its sector
All 217 in Healthcare →Frequently asked questions about HealthEquity
Is HealthEquity stock cheap or expensive?
On P/E and EV / EBITDA, it trades 18% above the Healthcare median on average. Valuation score: 5.3 out of 10 (median for Healthcare: 4.7). Average analyst target: 119.33 USD, +29.9% versus the price. This is not investment advice.
What score does HealthEquity get on MeridIAn Screener?
It scores 6.6 out of 10, rank 453 of 2,130 (better than 77% of the companies analysed). Its strongest category is Risk & Context (9.1) and its weakest, Dividend (1.5). Analysis of 08/10/2026.
What is HealthEquity's P/E ratio?
Its P/E is 33.2: the share price equals 33.2 times earnings per share over the last 12 months. The Healthcare median is 26.7. Based on the earnings analysts expect, the forward P/E is 16.7.
How much is HealthEquity worth on the stock market?
Its market capitalisation is 7.6B USD and its enterprise value, debt included, is 8.3B USD.
How much debt does HealthEquity have?
Its net debt (debt minus cash) is 715.0M USD. That is 1.39 times its EBITDA; the Healthcare median is 1.53.
Does HealthEquity pay a dividend?
It pays no dividend, or almost none.
How has HealthEquity stock performed over the last year?
It has risen 1.5% over the last year, excluding dividends. Over the last 52 weeks it has traded between 72.76 and 107.62 USD. Past performance does not guarantee future results.
What do analysts think of HealthEquity?
15 analysts cover it; their average recommendation is “Strong buy” and their average target is 119.33 USD (+29.9% versus the price). It is an estimate, not market data.