Healthequity (HQY) AI Stock Analysis

• Market Cap: $8.65B
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): 70.7
• Beta (1Y): 0.58
• Revenue Growth: 19.21%
• EPS Growth: 50.06%
• Country: US
• Employees: 3,105
• Sector: Healthcare
• Sector Strength: 39
• Industry: Medical - Healthcare Information Services
• EPS (TTM): 0.97
• Shares Outstanding: 86,475,350
• 10 Day Avg. Volume: 839,858
• 30 Day Avg. Volume: 1,140,927
• PEG Ratio: 2.77
• Price to Book (P/B): 4.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 100.67
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 12.30
• Enterprise Value/Ebitda: 6.89
• 1Y Price Target: $121.36
• Price Target Upside: 28.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 66 Neutral
• Price Target: $105.00 ▲(11.09%Upside)

Healthequity shows strong financial performance and positive strategic initiatives, bolstered by a new stock buyback program. However, technical indicators and valuation concerns weigh on the overall score. Economic uncertainty and ongoing fraud costs present additional risks.

Positive Factors

Financial Performance

HealthEquity reported financial results that topped expectations and full-year guidance was raised.

Legislation Impact

The revised Senate bill reinstates provisions allowing Bronze & Catastrophic plans to qualify as HDHPs for HSAs, unlocking a 5MM+ member TAM.

Revenue Growth

Total revenue increased 15.0% to $330.8 million, driven by robust custodial revenue growth.

Negative Factors

Account Growth

Account growth was relatively weak in the quarter, reflecting a general saturation of HSA adoption and a weaker macro environment.

Legislation Challenges

The draft of the Senate Bill lacks any reference to HSAs, cooling sentiment on HQY as legislative TAM unlock returns to the back-burner.

Legislative Exclusion

The exclusion of HSA provisions in the Senate version of the bill is disappointing.

Healthequity Business Overview & Revenue Model

Company Description

HealthEquity, Inc. is a leading provider of technology-enabled services that help consumers make healthcare saving and spending decisions. The company operates primarily in the healthcare sector, focusing on health savings accounts (HSAs) and other consumer-directed benefits. HealthEquity offers a comprehensive platform that integrates health and wealth management, empowering individuals to maximize their savings for healthcare expenses.

How the Company Makes Money

HealthEquity generates revenue through various streams, primarily from account fees, custodial fees, and interchange fees associated with its health savings accounts (HSAs). Account fees are charged to employers and individuals for maintaining and managing HSAs and other related accounts. Custodial fees are earned by managing the assets held in these accounts. Additionally, HealthEquity benefits from interchange fees on transactions made using HSA-linked debit cards. The company also partners with employers, benefits administrators, and health plans to offer its services as part of employee benefits packages, enhancing its market reach and revenue potential.

Healthequity Financial Statement Overview

Summary

Healthequity demonstrates strong financial performance with significant revenue growth and improved profitability. The income statement is robust with a 24.1% revenue increase and solid profit margins. The balance sheet is stable with moderate leverage, and cash flows show effective management with strong operating cash generation and healthy free cash flow growth.

Income Statement

Healthequity shows a strong financial performance with significant revenue growth and improved profitability. Gross Profit Margin is robust at 63.0%, and Net Profit Margin has improved to 9.8% in the TTM period. Revenue growth is impressive, with a 24.1% increase from the previous year. The EBIT Margin is healthy at 16.5%, and the EBITDA Margin is solid at 30.5%, reflecting efficient operations.

Balance Sheet

The balance sheet of Healthequity is stable with a reasonable Debt-to-Equity Ratio of 0.52, indicating moderate leverage. The Return on Equity (ROE) has improved significantly to 5.7%, showing effective utilization of equity. The Equity Ratio is strong at 62.2%, highlighting a solid equity base. However, total debt levels have increased slightly, which should be monitored for future stability.

Cash Flow

Cash flow analysis reveals strong operational cash generation with an Operating Cash Flow to Net Income Ratio of 2.78, indicating robust cash conversion. The Free Cash Flow Growth Rate is healthy at 158.6% from the previous period, and the Free Cash Flow to Net Income Ratio is 0.72, showing effective cash management. Despite a high capital expenditure, free cash flow remains positive.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.24B	1.20B	999.59M	861.75M	756.56M	733.57M
Gross Profit	783.45M	777.26M	622.64M	490.09M	423.71M	415.33M
EBITDA	379.70M	337.54M	282.42M	171.53M	102.97M	154.93M
Net Income	121.81M	96.70M	55.71M	-26.14M	-44.29M	8.83M
Balance Sheet
Total Assets	3.42B	3.45B	3.16B	3.09B	3.11B	2.71B
Cash, Cash Equivalents and Short-Term Investments	287.89M	295.95M	403.98M	254.27M	225.41M	328.80M
Total Debt	1.11B	1.11B	933.14M	994.49M	1.01B	1.07B
Total Liabilities	1.29B	1.33B	1.13B	1.19B	1.25B	1.33B
Stockholders Equity	2.12B	2.11B	2.04B	1.90B	1.85B	1.38B
Cash Flow
Free Cash Flow	87.52M	337.77M	196.75M	31.52M	3.91M	84.66M
Operating Cash Flow	339.17M	339.86M	242.83M	150.65M	141.00M	181.62M
Investing Cash Flow	-251.65M	-505.45M	-46.07M	-119.13M	-639.25M	-96.96M
Financing Cash Flow	-50.85M	57.57M	-47.04M	-2.67M	394.86M	52.42M

Healthequity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 94.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HQY, the sentiment is Negative. The current price of 94.52 is below the 20-day moving average (MA) of 102.00, below the 50-day MA of 100.29, and below the 200-day MA of 96.37, indicating a bearish trend. The MACD of -0.77 indicates Positive momentum. The RSI at 33.83 is Neutral, neither overbought nor oversold. The STOCH value of 8.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HQY.

Healthequity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PGNY	82 Outperform	$2.04B	41.67	10.11%	―	9.47%	-7.81%
DOCS	73 Outperform	$11.28B	54.36	22.50%	―	19.98%	53.10%
GDRX	68 Neutral	$1.74B	65.95	4.43%	―	4.35%	―
HQY	66 Neutral	$8.65B	70.74	5.77%	―	19.21%	50.06%
PINC	64 Neutral	$1.78B	37.59	6.05%	3.91%	-17.69%	-10.24%
TDOC	55 Neutral	$1.55B	―	-54.49%	―	-2.54%	-322.03%
Sector *	52 Neutral	$7.59B	0.30	-61.86%	2.27%	16.72%	1.10%

Healthequity Corporate Events

Healthequity Announces New $300 Million Stock Buyback

On June 26, 2025, Healthequity held its Annual Meeting where stockholders approved all three proposals, including the election of nine directors and the ratification of PricewaterhouseCoopers LLP as the independent accounting firm. Additionally, the board authorized a new $300 million stock repurchase program, supplementing the previous program, allowing the company to repurchase shares under favorable market conditions.

The most recent analyst rating on (HQY) stock is a Hold with a $108.00 price target. To see the full list of analyst forecasts on Healthequity stock, see the HQY Stock Forecast page.

Paul Black Resigns from HealthEquity Board

On April 22, 2025, Paul Black resigned from the Board of Directors of HealthEquity, Inc., leading to a reduction in the Board’s size to ten members. His resignation was not due to any disagreements with the company’s operations or policies. Additionally, the Board will further reduce to nine members on April 30, 2025, following Jon Kessler’s previously announced retirement.