Healthequity Stock Story

HQY -  USA Stock  

USD 49.97  0.96  1.96%

As many millenniums are trying to avoid healthcare space, it makes sense to break down Healthequity a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Healthequity shareholders. Is current the stock value sustainable? We will go over Healthequity valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Our prognosis on Healthequity (NASDAQ:HQY) to bounce back in January
This firm has 1.06 B in debt with debt to equity (D/E) ratio of 0.57, which is OK given its current industry classification. The company has a current ratio of 4.56, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
Our investment recommendation module provides unbiased trade recommendations that can be used to complement current average analyst sentiment on Healthequity. Our investment recommendation engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon.
We determine the current worth of Healthequity using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Healthequity based exclusively on its fundamental and basic technical indicators. By analyzing Healthequity's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Healthequity's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Healthequity. We calculate exposure to Healthequity's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Healthequity's related companies.

Healthequity Investment Alerts

Healthequity investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Healthequity performance across your portfolios.Please check all investment alerts for Healthequity

Healthequity Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Healthequity value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Healthequity competition to find correlations between indicators driving the intrinsic value of Healthequity.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Healthequity, but it might be worth checking our own buy vs. sell analysis

Healthequity exotic insider transaction detected

Legal trades by Healthequity insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Healthequity insider trading alert for general transaction of stock option (right to buy) by Larry Trittschuh, EVP Chief Security Officer, on 21st of December 2021. This event was filed by Healthequity Inc with SEC on 2021-12-21. Statement of changes in beneficial ownership - SEC Form 4. Larry Trittschuh currently serves as executive vice president chief security officer of Healthequity [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper Analysis

Healthequity reported the last year's revenue of 740.83 M. Total Income to common stockholders was 723 K with profit before taxes, overhead, and interest of 415.33 M.
 2020 2021 (projected)
Receivables72.77 M78.51 M
Inventories193.5 K292.37 K

Margins Breakdown

Healthequity profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Healthequity itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Healthequity profit margins.
0.63
Gross Margin
0.25
EBITDA Margin
Operating Margin4.76
EBITDA Margin0.25
Gross Margin0.63
Profit Margin0.0123


Healthequity Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Healthequity Average Assets is increasing over the last 8 years. Furthermore, Healthequity Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Healthequity Earnings Before Interest Taxes and Depreciation Amortization USD is fairly stable at the moment. Healthequity Average Assets is increasing over the last 8 years. Furthermore, Healthequity Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.

Will Healthequity continue to go out of control?

Current Information Ratio is up to -0.08. Price may slide again. Healthequity exhibits very low volatility with skewness of -0.54 and kurtosis of 1.19. However, we advise investors to further study Healthequity technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Healthequity's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Healthequity's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Healthequity Implied Volatility

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.

Our Final Takeaway

While some firms in the health information services industry are either recovering or due for a correction, Healthequity may not be performing as strong as the other in terms of long-term growth potentials. To sum up, as of the 5th of December 2021, we believe Healthequity is currently undervalued. It hyperactively responds to market trends and projects low probability of financial unrest in the next two years. Our up-to-date 90 days buy-or-sell advice on the company is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Healthequity. Please refer to our Terms of Use for any information regarding our disclosure principles.

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