HealthEquity Inc. Common Stock (HQY)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business I can understand, with durable advantages and a price that leaves room for error. HealthEquity administers health savings accounts and related workplace benefit accounts, a sticky, rule-heavy business where employer relationships and employee inertia can create switching costs. The financials show real improvement: in fiscal Q2 2027, the quarter ended 2026-07-31, revenue was $350.7M, net income $65.6M, and diluted EPS $0.78, versus fiscal Q2 2026, the quarter ended 2025-07-31, when revenue was $325.8M, net income $59.9M, and diluted EPS $0.68. For FY2026, ended 2026-01-31, revenue was $1.3B, net income $215.2M, and diluted EPS $2.46, up from FY2025 net income of $96.7M and diluted EPS $1.09. TTM free cash flow of $436.7M, a 5.9% FCF yield, is respectable. But at the 2026-10-13 close of $90.19, FairStock's P/E is 32.56, P/B 3.76, PEG 3.37, and EV/EBITDA 15.76. The Graham Number is only $38.68, giving a margin of safety of -133.17%. ROE is 11.43% and ROCE 6.65%, hardly exceptional. Debt/equity is 0.49, Piotroski 6/9, Altman Z 3.88—decent but not fortress-like. FairStock Score is 56/100, and its Lynch category is TURNAROUND—returned to profit after a loss within the last three years—so the record is not yet a steady compounder. This may be a good, sticky franchise, but the price already assumes continued execution. I would want a wider discount before calling it a Graham-style bargain.

In plain English: HealthEquity runs technology platforms that help people manage health savings accounts and other workplace benefits. The business is profitable and produces cash, but growth is moderate and the stock price at $90.19 on 2026-10-13 looks high compared with what its profits and assets suggest it is worth. It has recovered from a past loss, but it is not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer