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Is this Large Market Cap Stock target price reasonable for HealthEquity, Inc. (NASDAQ:HQY)?

The company in question is, HealthEquity, Inc. (NASDAQ:HQY) currently with a stock price of 36.31 (0.47% today). The market cap for HealthEquity, Inc. is 2120.33, and is in the sector Technology, and Healthcare Information Services industry. The target price for HealthEquity, Inc. is 38.67. Currently HealthEquity, Inc. is trading with a P/E of 91.26, and a forward P/E of 54.51. Average volume for HealthEquity, Inc. is 375.23 and so far today it is 86666.

Performance in the last year for HealthEquity, Inc. has been 21.44%. For EPS growth, HealthEquity, Inc. has seen a growth of 21.40%, and is looking to grow in the next year to 29.24%. More long term stats show that EPS growth has been *TBA over the last five years and could be 32.50% for the next five years. HealthEquity, Inc. has seen sales growth quarter over quarter at 44.90%, with EPS growth quarter over quarter at 84.00%. The 20-day simple moving average is 8.27%, with the 200-day simple moving average coming to 34.34%.

Since the IPO date for HealthEquity, Inc. on the 7/31/2014, HealthEquity, Inc. has seen performance year to date to be 44.16%. With HealthEquity, Inc. trading at 36.31, the dividend yield is *TBA, and the EPS is 0.4.

So could HealthEquity, Inc., be undervalued? Well as said before P/E is 91.26. The PEG is 2.81, P/S is 13.71 and the P/B is at 8.79. The P/cash is 14.18, with P/free cash flow at *TBA.

HealthEquity, Inc. ability to deal with debt shows that the current ratio is 19.4, and the quick ratio is 19.4. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, HealthEquity, Inc. has a gross margin of 59.70%, an operating margin of 23.70% and a profit margin of 15.20%.Payout ratio for HealthEquity, Inc. is 0.00%. Return on assets come to 10.30% with return on investment coming to 8.50%.

Insider ownership for HealthEquity, Inc., is at 1.20% and institutional ownership comes to 93.50%. Outstanding shares are at 58.67. While shares float is 56.57. The float short is currently 5.48%, and short ratio is 8.26.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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