Basket of asset managers: HQY, FNGN, WAGE

HealthEquity Inc

TMT, Finance/Real Estate


Presented:07/24/2017
Price:$48.71
Cap:$2.99B
Current Price:$83.83
Cap:$7.32B

Presented

Date07/24/2017
Price$48.71
Market Cap$2.99B
Ent Value$2.60B
P/E Ratio90.2x
Book Value$4.86
Div Yield0%
Shares O/S61.40M
Ave Daily Vol501,505
Short Int7.57%

Current

Price$83.83
Market Cap$7.32B
HealthEquity, Inc. engages in the provision of healthcare saving solutions. Its products include healthcare saving and spending platform, health savings accounts, investment advisory services, reimbursement arrangements, and healthcare incentives. Its consumers could access their tax advantaged healthcare savings, compare treatment options and pricing, evaluate and pay healthcare bills, receive personalized benefit and clinical information, earn wellness incentives, and make educated investment choices to grow their tax-advantaged healthcare savings. The company was founded by Stephen D. Neeleman on September 18, 2002 and is headquartered in Draper, UT.

Publicly traded companies mentioned herein: Financial Engines Inc (FNGN), Healthequity Inc (HQY), Wageworks Inc (WAGE)

Highlights

The presenter is short shares of a basket of asset managers who are viewed akin to software/business service tech companies due to their high revenue and earnings growth from rapid AUM expansion. However, the presenter believes that the high multiples currently enjoyed by these companies are unsustainable as these asset managers inevitably miss revenue and earnings estimates. He highlights three companies that fit this framework: Financial Engines (FNGN), Wageworks (WAGE), and Healthequity (HQY).

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Idea Discussion

Commentor 1 - 2 weeks ago

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