HealthEquity: High Marks For Recent Profit Growth

Nov. 20, 2024 5:16 AM ETHealthEquity, Inc. (HQY) StockHQY
Zach Bristow
4.17K Followers
(13min)

Summary

  • HealthEquity's future growth relies heavily on capital reinvestment due to the asset-light nature of the business.
  • High multiples of capital are necessary to ensure each $1 of retained and reinvested earnings is valued highly by the market.
  • The core asset base has hard-to-replicate business advantages that have grown operating earnings at attractive rates which by all means can continue.

Business on Wall Street in Manhattan

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Investment Summary

Following my last report on HealthEquity, Inc. (NASDAQ:HQY) the stock is +34% and has broken out from the five-year base I highlighted in Figure 1 of that report. This included 1) an extended phase of accumulation

This article was written by

4.17K Followers
Equity strategist (US Equities)Technical focus on fundamental value drivers of business economics to uncover high probability long-term compounders. Seeking to buy at appropriate prices relative to intrinsic worth. Partners are represented over the cross-section of financial markets, from speculators, hedgers, long-term traders and the public. Research covers investment securities and futures & options markets. Shoot me a message to talk trade ideas or portfolio construction. Disclaimer:All research is strictly for informational purposes only. Not to be considered investment advice. Conduct your own due diligence. The Company accepts no responsibility for personal decisions made. Opinions of The Company and its affiliates may change from time to time without prior acknowledgement. The Company and its representatives share no economic relationship with any entities in which it holds common stock investments.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of HQY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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