Is the business good?
How good a business is HQY?
HealthEquity, Inc. earns 9.9% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
9.9%
Return on invested capital · cost of capital 9.0% · 0.93 points above what the capital costs: growth creates value
- Operating margin
- 26%
Operating margin · Health Information Services median 2.3% · 12 months to Q1 2027
- Cash conversion
- 2.11×
Cash conversion · 2.77× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −3.9%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2021 | 4.6% |
| FY2022 | −3.2% |
| FY2023 | 1.1% |
| FY2024 | 12% |
| FY2025 | 14% |
| FY2026 | 25% |
Details›
- Gross margin12 months to Q1 2027
- 71%
- Operating margin12 months to Q1 2027
- 26%
- Net margin12 months to Q1 2027
- 17%
- Free cash flow margin
- 36%
- R&D as % of revenue
- 20%
- Revenue, trailing twelve months
- $1.34B
- Free cash flow, trailing twelve months
- $488M
- Net income, trailing twelve months
- $231M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.9%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Health Information Services
Ranks #10 of 14 by Smart Score