HealthEquity (HQY): Revisiting Valuation After a Flat Month and Ongoing Earnings Growth

Simply Wall St.12-06

HealthEquity (HQY) has been treading water lately, with the stock roughly flat over the past month after a modest 3 month climb. That makes this a good moment to revisit what is driving the story. See...

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See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nasdaq-hqy/healthequity/news/healthequity-hqy-revisiting-valuation-after-a-flat-month-and\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>HealthEquity (HQY): Revisiting Valuation After a Flat Month and Ongoing Earnings Growth</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHealthEquity (HQY): Revisiting Valuation After a Flat Month and Ongoing Earnings Growth\n</h2>\n\n<h4 class=\"meta\">\n\n\n2025-12-06 13:23 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/healthcare/nasdaq-hqy/healthequity/news/healthequity-hqy-revisiting-valuation-after-a-flat-month-and><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>HealthEquity (HQY) has been treading water lately, with the stock roughly flat over the past month after a modest 3 month climb. That makes this a good moment to revisit what is driving the story. See...</p>\n\n<a href=\"https://simplywall.st/stocks/us/healthcare/nasdaq-hqy/healthequity/news/healthequity-hqy-revisiting-valuation-after-a-flat-month-and\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"HQY","symbol_name":"HealthEquity","start_time":0,"source_url":"https://simplywall.st/stocks/us/healthcare/nasdaq-hqy/healthequity/news/healthequity-hqy-revisiting-valuation-after-a-flat-month-and","article_id":"2589284295","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/6034000-choice1-main-header/1585187559063"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/healthcare/nasdaq-hqy/healthequity/news/healthequity-hqy-revisiting-valuation-after-a-flat-month-and","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2589284295","pubTimestamp":1764998606,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"HealthEquity (HQY) has been treading water lately, with the stock roughly flat over the past month after a modest 3 month climb. That makes this a good moment to revisit what is driving the story.\nSee our latest analysis for HealthEquity.\nOver the past year, HealthEquity’s share price return has been slightly negative even as its multi year total shareholder return remains strong. This suggests that recent weakness may be more about shifting risk sentiment than fundamentals.\nIf HealthEquity’s...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"HQY":"HealthEquity"},"translate_title":"HealthEquity(HQY)：在一个月持平和盈利持续增长后重新审视估值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"HQY":1.5},"content_text":"HealthEquity (HQY) has been treading water lately, with the stock roughly flat over the past month after a modest 3 month climb. That makes this a good moment to revisit what is driving the story. See our latest analysis for HealthEquity. Over the past year, HealthEquity’s share price return has been slightly negative even as its multi year total shareholder return remains strong. This suggests that recent weakness may be more about shifting risk sentiment than fundamentals. If HealthEquity’s pause has you rethinking your exposure to medical names, this could be a good moment to explore other healthcare stocks that might fit your strategy. With earnings still growing briskly and the share price lagging both analyst targets and intrinsic estimates, the key question now is whether HealthEquity is quietly undervalued or if the market is already pricing in its next leg of growth. AdvertisementMost Popular Narrative: 22.8% Undervalued Compared with the last close at $94.51, the most followed narrative sees HealthEquity’s fair value materially higher, grounded in structural HSA market expansion and rising profitability.  The recent regulatory expansion, allowing direct primary care, pre deductible telehealth, and millions of new ACA bronze/catastrophic plan members to qualify for HSAs, creates the largest addressable market increase in two decades, poised to accelerate new account openings and AUM growth, meaningfully boosting future revenue.  Read the complete narrative. Want to see how this boom in eligible HSA members turns into hard numbers? The narrative leans on climbing margins, accelerating earnings, and a rich future multiple. Curious which specific growth and profitability assumptions make that higher valuation pencil out? Result: Fair Value of $122.36 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this hinges on a healthy labor market and supportive interest rates, as weaker hiring or falling yields could quickly undermine those upbeat projections. Find out about the key risks to this HealthEquity narrative. Another Lens on Valuation Our SWS DCF model estimates fair value near $177.13, which is around 46.6% above the current $94.51 share price. If cash flows really are this strong, this raises the question of whether the market is simply too cautious on HealthEquity’s long runway. Look into how the SWS DCF model arrives at its fair value. HQY Discounted Cash Flow as at Dec 2025 Build Your Own HealthEquity Narrative If you see the numbers differently or want to stress test your own assumptions, you can build a complete narrative in minutes: Do it your way A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding HealthEquity. Looking for more investment ideas? Before you move on, lock in your next steps by scanning a few focused stock lists that could surface opportunities you would otherwise miss.  Capture potential mispricings by reviewing these 906 undervalued stocks based on cash flows that pair solid cash flow profiles with appealing entry points. Position ahead of the next wave of innovation by checking out these 28 quantum computing stocks pushing the frontier of computing power. Boost your income strategy by focusing on these 15 dividend stocks with yields > 3% that combine reliable payouts with room for capital growth.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if HealthEquity might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.35.11","shortVersion":"4.35.11","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2589284295","isCrawlerRequest":true}