Healthequity Beneish M Score

HQY
 Stock
  

USD 66.75  0.06  0.09%   

This module uses fundamental data of Healthequity to approximate the value of its Beneish M Score. Healthequity M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Healthequity Piotroski F Score and Healthequity Altman Z Score analysis.
  
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Healthequity Total Debt is fairly stable at the moment as compared to the past year. Healthequity reported Total Debt of 1.01 Billion in 2021. Debt Current is likely to rise to about 32.9 M in 2022, whereas Debt Non Current is likely to drop slightly above 973.7 M in 2022. Healthequity Quick Ratio is fairly stable at the moment as compared to the past year. Healthequity reported Quick Ratio of 1.73 in 2021. Net Current Assets as percentage of Total Assets is likely to rise to 11.13 in 2022, whereas Calculated Tax Rate is likely to drop (133.82)  in 2022.
At this time, it appears that Healthequity is an unlikely manipulator. The earnings manipulation may begin if Healthequity's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Healthequity executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Healthequity's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.52
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.02Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.13Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition0.97Focus

Healthequity Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Healthequity's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues816.3 M756.6 M
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense154.3 M143 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations117 M141 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion148 M137.2 M
Significantly Up
Increasing
Slightly volatile
Total Assets3.4 B3.1 B
Significantly Up
Increasing
Slightly volatile
Investments48.1 M46.9 M
Fairly Up
Increasing
Slightly volatile
Investments Current48.1 M46.9 M
Fairly Up
Increasing
Slightly volatile
Property Plant and Equipment Net93.9 M87 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables94.3 M87.4 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Current Assets316.7 M351.3 M
Moderately Down
Increasing
Slightly volatile
Assets Non CurrentB2.8 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities165.3 M153.2 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Total DebtBB
Fairly Up
Increasing
Slightly volatile
Debt Current32.9 M20.9 M
Way Up
Increasing
Slightly volatile
Debt Non Current973.7 M987.3 M
Fairly Down
Decreasing
Slightly volatile
Operating Income(24.9 M)(24.2 M)
Fairly Down
Increasing
Very volatile
Gross Margin0.630.56
Moderately Up
Increasing
Slightly volatile

Healthequity Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Healthequity's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Healthequity in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Healthequity's degree of accounting gimmicks and manipulations.

About Healthequity Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Expenses

483.31 Million

Share
Healthequity Operating Expenses is fairly stable at the moment as compared to the past year. Healthequity reported Operating Expenses of 447.94 Million in 2021

Healthequity Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Healthequity. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues229.53 M287.24 M531.99 M733.57 M756.56 M816.28 M
Total Assets369.16 M510.02 M2.56 B2.71 B3.11 B3.35 B
Current Assets265.4 M394.68 M297.3 M460.18 M351.34 M316.71 M
Assets Non Current103.76 M115.34 M2.27 B2.25 B2.76 B2.97 B
Total Liabilities22.89 M32.94 M1.53 B1.33 B1.25 B1.35 B
Current Liabilities20.49 M29.05 M151.94 M204.7 M153.19 M165.28 M
Operating Income54.42 M77.67 M77.01 M34.01 M(24.24 M)(24.88 M)
Gross Margin0.570.60.590.630.610.56

About Healthequity Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Healthequity's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Healthequity using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Healthequity based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. The company was incorporated in 2002 and is headquartered in Draper, Utah. Healthequity operates under Health Information Services classification in the United States and is traded on NASDAQ Exchange. It employs 3688 people.

Healthequity Investors Sentiment

The influence of Healthequity's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Healthequity. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Healthequity Implied Volatility

    
  38.11  
Healthequity's implied volatility exposes the market's sentiment of Healthequity stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Healthequity's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Healthequity stock will not fluctuate a lot when Healthequity's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Healthequity in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Healthequity's short interest history, or implied volatility extrapolated from Healthequity options trading.

Current Sentiment - HQY

Healthequity Investor Sentiment

Greater number of Macroaxis users are currently bullish on Healthequity. What is your judgment towards investing in Healthequity? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Please check Healthequity Piotroski F Score and Healthequity Altman Z Score analysis. Note that the Healthequity information on this page should be used as a complementary analysis to other Healthequity's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Healthequity price analysis, check to measure Healthequity's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Healthequity is operating at the current time. Most of Healthequity's value examination focuses on studying past and present price action to predict the probability of Healthequity's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Healthequity's price. Additionally, you may evaluate how the addition of Healthequity to your portfolios can decrease your overall portfolio volatility.
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Is Healthequity's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Healthequity. If investors know Healthequity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Healthequity listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.96
Market Capitalization
5.6 B
Quarterly Revenue Growth YOY
0.12
Return On Assets
0.0059
Return On Equity
-0.0299
The market value of Healthequity is measured differently than its book value, which is the value of Healthequity that is recorded on the company's balance sheet. Investors also form their own opinion of Healthequity's value that differs from its market value or its book value, called intrinsic value, which is Healthequity's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Healthequity's market value can be influenced by many factors that don't directly affect Healthequity's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Healthequity's value and its price as these two are different measures arrived at by different means. Investors typically determine Healthequity value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Healthequity's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.