Healthequity has roughly 225.41
M in cash with 141
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.69.
Macroaxis provides unbiased trade recommendations on Healthequity that should be used to complement current
analysts and expert consensus on Healthequity. Our advice engine determines the entity's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Investing in HealthEquity, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding HealthEquity along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of HealthEquity's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as HealthEquity. Your research has to be compared to or analyzed against HealthEquity's peers to derive any actionable benefits. When done correctly, HealthEquity's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in HealthEquity.
How important is HealthEquity's Liquidity
HealthEquity
financial leverage refers to using borrowed capital as a funding source to finance HealthEquity ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HealthEquity financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to HealthEquity's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of HealthEquity's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between HealthEquity's total debt and its cash.
HealthEquity Gross Profit
HealthEquity Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing HealthEquity previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show HealthEquity Gross Profit growth over the last 10 years. Please check HealthEquity's
gross profit and other
fundamental indicators for more details.
HealthEquity Correlation with Peers
Investors in HealthEquity can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in HealthEquity. Diversification will allow for the same portfolio return with reduced risk. The correlation table of HealthEquity and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities HealthEquity is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of HealthEquity for more details
A Deeper Analysis
Healthequity appears to be very steady, given 3 months investment horizon.
Healthequity holds Efficiency (Sharpe) Ratio of 0.16, which attests that the entity had 0.16% of return per unit of standard deviation over the last 3 months. Our philosophy in determining the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Healthequity, which you can use to evaluate the future volatility of the firm. Please utilize Healthequity's
market risk adjusted performance of 0.2347, and Risk Adjusted Performance of 0.1658 to validate if our risk estimates are consistent with your expectations.
Will price continue to rise in July 2022?
Current variance is at 5.98. Healthequity currently demonstrates below-average downside deviation. It has Information Ratio of 0.14 and Jensen Alpha of 0.35. However, we advise investors to further question Healthequity expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Healthequity's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Healthequity's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Healthequity Implied Volatility
Healthequity's implied volatility exposes the market's sentiment of Healthequity stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Healthequity's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Healthequity stock will not fluctuate a lot when Healthequity's options are near their expiration.
Our Final Take On Healthequity
While some firms within the health information services industry are still a little expensive, even after the recent corrections, Healthequity may offer a potential longer-term growth to investors. To summarize, as of the 5th of June 2022, our present 90 days recommendation on the company is
Strong Buy. We believe Healthequity is
undervalued with
low chance of financial distress for the next two years.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of HealthEquity. Please refer to our
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