Stock fact sheet · data as of
HealthEquity, Inc. (HQY): fair value, margin of safety and Wheel Score
Healthcare · Medical - Healthcare Information Services · United States · High Growth
Is HQY undervalued?
At 92.51 (close of 16 Oct 2026), HQY trades 36% below the GLS average fair value of 144.55. That average comes from 8 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns HealthEquity, Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.
The 8 models disagree widely: EPV gives 31.52 while DCF gives 428.17. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files HQY under High Growth: revenue and earnings growing fast enough that the growth-based models carry the valuation.
Nine valuation models for HQY
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 428.17 | +363% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 39.03 | -58% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 92.80 | +0% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 35.40 | -62% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 173.65 | +88% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 131.80 | +42% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 224.01 | +142% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | - | - | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend; no value tonight |
| EPV | 31.52 | -66% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -9.82 | -111% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 117.00 | +26% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
On financial health HQY scores 8/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is 7.3 out of 10: a ten-year record that is consistent in some of the metrics the score tracks (revenue, earnings, margins, cash flow, returns on capital) and patchy in others.
Returns on capital are moderate - ROIC 6.9%, ROE 10.2%, ROA 6.3% - with debt at 0.48 times equity and a free-cash-flow yield of 6.2%.
HealthEquity, Inc. pays no dividend, so the DDM model does not apply and a covered-call holder earns only the premium and any price gain. Revenue comes mainly from Financial Service, Other 50%, Service 36%, Credit and Debit Card 14% (quarter Q2 FY2027).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 10/10 on the GLS smart-money scales.
| Piotroski F-score | 8 / 9 | ROIC | 6.9% |
|---|---|---|---|
| GLS Moat | 7.3 / 10 | ROE | 10.2% |
| Debt / equity | 0.48 | ROA | 6.3% |
| Free-cash-flow yield | 6.2% | Payout ratio | 0% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 10 / 10 |
Wheel Score 88: Prime
HQY scores 88 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (18/20), the GLS moat (11/15), the option premium on offer (18/20) and how easily the stock trades (17/20).
Implied volatility is 33% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (18 of 20 points). Chain open interest is 2,258 contracts across all expiries - enough for the wheel at normal size.
Volume runs at 735k shares a day on a market cap of $7.7B, with a beta of 0.24 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 36% margin of safety | |
| Health | 18 / 20 | Piotroski 8/9 | |
| Moat | 11 / 15 | moat 7.3/10 | |
| Premium | 18 / 20 | implied volatility 33% | |
| Stability | 17 / 20 | 735k shares/day, $7.7B cap, beta 0.24 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Dec 2026, 47 days away - outside the window of a 30-45-day put sold today.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Medical - Healthcare Information Services
The 12 companies below are the closest to HealthEquity, Inc. by market cap within the Medical - Healthcare Information Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| HNGE Hinge Health, Inc. | 104.96 | 61.09 | -72% | 57Fair | $8.5B |
| DOCS Doximity, Inc. | 31.50 | 25.03 | -26% | 60Fair | $5.6B |
| WAY Waystar Holding Corp. | 26.87 | 38.90 | +31% | 85Prime | $5.2B |
| TEM Tempus AI, Inc. | 68.32 | - | - | 45Weak | $12.0B |
| BTSG BrightSpring Health Services, Inc. Common Stock | 62.36 | 46.43 | -34% | 59Fair | $12.3B |
| HTFL Heartflow, Inc. Common Stock | 50.91 | - | - | 45Weak | $4.4B |
| PRVA Privia Health Group, Inc. | 21.67 | 42.94 | +50% | 45Weak | $2.8B |
| OMCL Omnicell, Inc. | 35.95 | 23.57 | -52% | 53Fair | $1.6B |
| CERT Certara, Inc. | 9.66 | 8.34 | -16% | 45Weak | $1.5B |
| GDRX GoodRx Holdings, Inc. | 3.51 | 3.44 | -2% | 62Fair | $1.2B |
| OMDA Omada Health | 18.67 | 4.09 | -357% | 52Fair | $1.1B |
| TDOC Teladoc Health, Inc. | 5.81 | 21.97 | +74% | 45Weak | $1.1B |
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Start free See the Sunday ScanQuestions about HQY
Is HQY undervalued right now?
By the GLS models, yes: at 92.51 the stock is 36% below the average fair value of 144.55 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of HQY and what does it mean?
HQY scores 88 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for HQY?
144.55 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does HealthEquity, Inc. report earnings next?
The next earnings report is due on 2 Dec 2026, 47 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does HQY have listed options, and how liquid are they?
Yes. The nightly snapshot found 220 listed contracts with 2,258 open interest across all expiries and implied volatility of 33% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.