# HealthEquity (HQY.US)

Canonical: https://gigainvestors.com/s/HQY

Analysis as of: 2026-10-16T07:29:07.459Z. Financial observations: FY2013–FY2027.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $92.51 per share; close as of 2026-10-15.

Estimated value: low $32.07 per share, central $36.11 per share, high $41.48 per share. Buy at or below the central value $36.11 per share. Valuation as of 2026-10-16T07:29:07.459Z; scenarios are not confidence intervals.

Expected annual return: 5.5% at the stated quote. About 5.5% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 0 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 2

- Operating margin variation: 0.46×

Chart: Operating margin; fiscal year observations.

- FY2018: 0.24×

- FY2019: 0.27×

- FY2020: 0.21×

- FY2021: 0.11×

- FY2022: 0.05×

- FY2023: 0.04×

- FY2024: 0.13×

- FY2025: 0.19×

- FY2026: 0.25×

- LTM to Jul 2026: 0.26×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 13.7%

- ROIC, second-lowest year: 3.2%

- Typical minus recent gross margin: -2.0 pp

- Typical gross margin (annual median): 55.7%

- Recent gross margin (lower of latest and 3-year median): 57.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 7.5%

- ROIC including acquisitions, ten-year median: 7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 35.2%

- FY2018: 48.7%

- FY2019: 68.2%

- FY2020: 12.4%

- FY2021: 10.0%

- FY2022: 3.2%

- FY2023: 3.0%

- FY2024: 10.4%

- FY2025: 15.0%

- FY2026: 21.9%

### economics: pass

- Owner earnings / net income, 5-yr: 2.56×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $759M

- Net income, five-year total: $297M

- Return on incremental invested capital: >100%

- Working capital / revenue, annual change: 0.0 pp

- Working capital / revenue, change between three-year averages: 0.7 pp

- Working capital / revenue, final three-year average: 8.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.00×

- FY2023: -0.61×

- FY2024: 2.92×

- FY2025: 2.66×

- FY2026: 1.71×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 48.7% vs 15.0%

- Per-share earnings: 0.44 to 1.09 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- acquired goodwill and intangibles (proxy) exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 4.0%

- Ordinary dilution, 5-year annual growth: 2.9%

- Market cap gain: $4.5B

- Cumulative retained earnings: $166M

- Diluted shares, 10-year annual growth: 4.0%

- Diluted shares, 5-year annual growth: 2.9%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 12.0%

- Per-share value change: $0.65

- Per-share value, starting three-year median: $0.44

- Per-share value, ending three-year median: $1.09

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 2.7%

- Buyback history: 2 years

- Debt-funded buybacks: No

- Acquisition spending: $2.9B

- Cumulative net income, 10 years: $493M

- ROIC, first three-year median: 48.7%

- ROIC, last three-year median: 15.0%

Chart: Earnings per share; fiscal year observations.

- FY2017: $0.44

- FY2018: $0.77

- FY2019: $1.17

- FY2020: $0.58

- FY2021: $0.12

- FY2022: -$0.53

- FY2023: -$0.31

- FY2024: $0.64

- FY2025: $1.09

- FY2026: $2.46

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -7.0%

- Receivables to sales index (DSRI): 0.96×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 16.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.12×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 1.30×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -6.9%

- FY2018: -9.3%

- FY2019: -7.7%

- FY2020: -2.6%

- FY2021: -6.4%

- FY2022: -6.0%

- FY2023: -5.7%

- FY2024: -5.9%

- FY2025: -7.1%

- FY2026: -7.0%

## Holders

## Price story

Price needs cash profits to grow 13.4% a year for ten years · sales +3.7%

Story as of 2026-10-16T09:58:54.101Z; price observation 2026-10-15.

Price needs cash profits to grow 13.4% a year for ten years

- 2025-06-04: HealthEquity surges 9% on quarterly beats, boosted guidance ([seekingalpha.com](https://seekingalpha.com/news/4455448-healthequity-surges-9-percent-quarterly-beats-boosted-guidance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-09-03: HealthEquity stock gains as FY 2026 guidance rises, AI and HSA expansion advance ([seekingalpha.com](https://seekingalpha.com/news/4491537-healthequity-stock-gains-as-fy-2026-guidance-rises-ai-and-hsa-expansion-advance?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-01-12: HealthEquity expects FY 2027 revenue between $1.38B and $1.41B; shares down over 7% ([seekingalpha.com](https://seekingalpha.com/news/4538490-healthequity-expects-fy-2027-revenue-between-138b-and-141b-shares-down-over-7?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-05-29: HealthEquity Posts Q1 Beat-and-Raise on Strong HSA Growth, AI-Driven Efficiency, RBC Says ([finance.yahoo.com](https://finance.yahoo.com/sectors/healthcare/articles/healthequity-posts-q1-beat-raise-154226399.html))

### Sales · FY2026–2027

sales +3.7%; source https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm; observed 2026-03-17.

- FY2018: $230M 

- FY2019: $287M 

- FY2020: $532M 

- FY2021: $734M 

- FY2022: $757M 

- FY2023: $862M 

- FY2024: $1,000M 

- FY2025: $1.2B 

- FY2026: $1.3B 

- FY2027: $1.4B 

### Gross margin · FY2026

gross margin 69.5%; source https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm; observed 2026-03-17.

- FY2017: 57.2% 

- FY2018: 56.7% 

- FY2019: 61.0% 

- FY2020: 54.7% 

- FY2021: 46.2% 

- FY2022: 45.1% 

- FY2023: 45.9% 

- FY2024: 53.0% 

- FY2025: 57.7% 

- FY2026: 69.5% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in health information services; annual sales are USD 1.3 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm (filed 2026-03-17); FY2026: revenue 1313429000; grossProfit 913116000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HQY.US: HealthEquity, Inc. provides technology-enabled services platforms to consumers and employers in the United States. It offers health savings accounts (HAS); investment platform; online-only automated investment advisory services through Advisor, a Web-based tool. The company also provides flexible spending accounts (FSA) for health and dependent care; health reimbursement arrangements; and Consolidated Omnibus Budget Reconciliation Act continuation services, as well as administers pre-tax commuter benefit programs. In addition, the company offers HSA and FSA members with access to certain healthcare products, programs, and services through its marketplace. It serves clients through a direct sales force; and brokers and advisors, a network of health plans, benefits administrators, benefits brokers and consultants, and retirement plan record-keepers. HealthEquity, Inc. was incorporated in 2002 and is based in Draper, Utah.

### Why customers stay

Margins ranged from 53% to 69.5% during 2024–26; it earns 13.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2024: grossProfit / revenue = 53%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2025: grossProfit / revenue = 57.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm (filed 2026-03-17); FY2026: grossProfit / revenue = 69.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); 10-year return on capital observations [[2017,0.35218914684517877],[2018,0.487251002502587],[2019,0.6823080470658974],[2020,0.12426990718288569],[2021,0.10029208609645109],[2022,0.03238620389973271],[2023,0.03011587362333631],[2024,0.10384996166737541],[2025,0.14987429355705853],[2026,0.2191001691876149]]; median 0.1370721003699721. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 45% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm (filed 2026-03-17); Gross margin observations: [[2021,0.4624916504219093],[2022,0.4506143629817224],[2023,0.45895667875063245]]; range within 2 percentage points.

### Where the cash goes

Paid no dividends in 10 years; bought back USD 299.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2017: growth capex 0; upkeep 12675000; owner earnings 26887000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2018: growth capex 1557478.8986814618; upkeep 31825521.10131854; owner earnings 31488478.89868146. Growth capex / owner earnings = 0.04946186520132858.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2019: growth capex 0; upkeep 15042000; owner earnings 77042000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2020: growth capex 0; upkeep 42074000; owner earnings 52942000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2021: growth capex 0; upkeep 96964000; owner earnings 27774000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2023: growth capex 0; upkeep 119127000; owner earnings 15931000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2024: growth capex 0; upkeep 46074000; owner earnings 162716000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); FY2025: growth capex 0; upkeep 2084000; owner earnings 257070000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm (filed 2026-03-17); FY2026: growth capex 0; upkeep 1969000; owner earnings 367889000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); Dividend observations: [[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0],[2026,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm (filed 2026-03-17); FY2026: cash repurchases 299254000 USD.

### Are managers owners

Insiders own 2.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HQY.US SharesStats.PercentInsiders = 2.168 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 13.4% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-17); Ten-year compound average after fade. Initial solved rate 0.18051335454822526. Price 92.51; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share -0.3982174306907765 → FY2026 4.205743486561568. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $33.23 per share

- 2016-11: $44.53 per share

- 2016-12: $40.52 per share

- 2017-01: $46.25 per share

- 2017-02: $43.70 per share

- 2017-03: $42.45 per share

- 2017-04: $45.52 per share

- 2017-05: $45.80 per share

- 2017-06: $49.83 per share

- 2017-07: $45.87 per share

- 2017-08: $42.77 per share

- 2017-09: $50.58 per share

- 2017-10: $50.22 per share

- 2017-11: $51.87 per share

- 2017-12: $46.66 per share

- 2018-01: $50.62 per share

- 2018-02: $57.58 per share

- 2018-03: $60.54 per share

- 2018-04: $65.67 per share

- 2018-05: $74.31 per share

- 2018-06: $75.10 per share

- 2018-07: $75.50 per share

- 2018-08: $94.21 per share

- 2018-09: $94.41 per share

- 2018-10: $91.80 per share

- 2018-11: $88.69 per share

- 2018-12: $59.65 per share

- 2019-01: $62.34 per share

- 2019-02: $80.48 per share

- 2019-03: $73.98 per share

- 2019-04: $67.75 per share

- 2019-05: $65.36 per share

- 2019-06: $65.40 per share

- 2019-07: $81.98 per share

- 2019-08: $59.36 per share

- 2019-09: $57.15 per share

- 2019-10: $56.79 per share

- 2019-11: $62.89 per share

- 2019-12: $74.07 per share

- 2020-01: $66.06 per share

- 2020-02: $70.99 per share

- 2020-03: $50.59 per share

- 2020-04: $56.27 per share

- 2020-05: $61.97 per share

- 2020-06: $58.67 per share

- 2020-07: $51.56 per share

- 2020-08: $57.48 per share

- 2020-09: $51.37 per share

- 2020-10: $51.49 per share

- 2020-11: $71.69 per share

- 2020-12: $69.71 per share

- 2021-01: $83.55 per share

- 2021-02: $82.35 per share

- 2021-03: $68.00 per share

- 2021-04: $75.97 per share

- 2021-05: $83.12 per share

- 2021-06: $80.48 per share

- 2021-07: $73.98 per share

- 2021-08: $64.17 per share

- 2021-09: $64.76 per share

- 2021-10: $66.18 per share

- 2021-11: $54.68 per share

- 2021-12: $44.24 per share

- 2022-01: $53.44 per share

- 2022-02: $53.71 per share

- 2022-03: $67.44 per share

- 2022-04: $62.32 per share

- 2022-05: $62.58 per share

- 2022-06: $61.39 per share

- 2022-07: $58.17 per share

- 2022-08: $66.08 per share

- 2022-09: $67.17 per share

- 2022-10: $77.91 per share

- 2022-11: $63.48 per share

- 2022-12: $61.64 per share

- 2023-01: $60.85 per share

- 2023-02: $65.17 per share

- 2023-03: $58.71 per share

- 2023-04: $53.45 per share

- 2023-05: $54.80 per share

- 2023-06: $63.14 per share

- 2023-07: $67.94 per share

- 2023-08: $67.55 per share

- 2023-09: $73.05 per share

- 2023-10: $71.68 per share

- 2023-11: $67.02 per share

- 2023-12: $66.30 per share

- 2024-01: $75.58 per share

- 2024-02: $82.61 per share

- 2024-03: $81.63 per share

- 2024-04: $78.91 per share

- 2024-05: $81.68 per share

- 2024-06: $86.20 per share

- 2024-07: $78.48 per share

- 2024-08: $79.56 per share

- 2024-09: $81.85 per share

- 2024-10: $85.25 per share

- 2024-11: $101.54 per share

- 2024-12: $95.95 per share

- 2025-01: $110.42 per share

- 2025-02: $109.76 per share

- 2025-03: $88.37 per share

- 2025-04: $85.72 per share

- 2025-05: $100.61 per share

- 2025-06: $104.76 per share

- 2025-07: $97.00 per share

- 2025-08: $89.33 per share

- 2025-09: $94.77 per share

- 2025-10: $94.58 per share

- 2025-11: $105.18 per share

- 2025-12: $91.61 per share

- 2026-01: $85.67 per share

- 2026-02: $76.49 per share

- 2026-03: $83.57 per share

- 2026-04: $82.03 per share

- 2026-05: $87.99 per share

- 2026-06: $90.32 per share

- 2026-07: $100.61 per share

- 2026-08: $96.54 per share

- 2026-09: $88.46 per share

- 2026-10: $92.51 per share

## Annual estimated value (USD per share)

- FY2017: low $6.16 per share, central $6.60 per share, high $7.19 per share

- FY2018: low $7.81 per share, central $8.36 per share, high $9.10 per share

- FY2019: low $12.41 per share, central $13.35 per share, high $14.60 per share

- FY2020: low $14.30 per share, central $15.91 per share, high $18.04 per share

- FY2021: low $18.69 per share, central $20.69 per share, high $23.36 per share

- FY2022: low $12.43 per share, central $13.79 per share, high $15.61 per share

- FY2023: low $7.03 per share, central $7.61 per share, high $8.39 per share

- FY2024: low $9.17 per share, central $9.83 per share, high $10.70 per share

- FY2025: low $8.65 per share, central $9.42 per share, high $10.45 per share

- FY2026: low $30.06 per share, central $33.75 per share, high $38.65 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1428336/000142833626000010/hqy-20260131.htm); period 2026-01-31, filed 2026-03-17.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations



# HQY — HealthEquity Inc.

Held by 1 investor · USD 23,020,591 total · 2025 Q2 · reported price USD 104.76 (split-adjusted).
Page: https://gigainvestors.com/s/HQY

## Holders (2025 Q2)

| Investor | Value | % of their portfolio | This quarter |
|---|---:|---:|---|
| Andreas Halvorsen (https://gigainvestors.com/vg) | USD 23,020,591 | 0.1% | new |

## Total held by quarter

- 2025 Q2: USD 23,020,591 · 1 holder · USD 104.76
- 2025 Q3: USD 0 · 0 holders