HealthEquityFRA:2HE -0.61%93 Return-on-Tangible-Equity is Negative Tangible Equity% as of Apr. 2026. GuruFocus rates FRA:2HE with a GF Score™ of 93/100 and a GF Value™ of €89.27. The stock has 2 warning signs investors should review. Among 579 Healthcare Providers & Services companies, HealthEquity ranks better than 99.83% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. HealthEquity's annualized net income for the quarter that ended in Apr. 2026 was €237 Mil. HealthEquity's average shareholder tangible equity for the quarter that ended in Apr. 2026 was €-560 Mil. Therefore, HealthEquity's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for HealthEquity's Return-on-Tangible-Equity or its related term are showing as below:
FRA:2HE'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 16.27 Med: 21.04 Max: 22.71
Current: Negative Tangible Equity
During the past 13 years, HealthEquity's highest Return-on-Tangible-Equity was 22.71%. The lowest was 16.27%. And the median was 21.04%.
FRA:2HE's Return-on-Tangible-Equity is ranked better than 99.83% of 579
companies
in the Healthcare Providers & Services industry
Industry Median: 10.21
vs FRA:2HE: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
HealthEquity Return-on-Tangible-Equity Related Terms
HealthEquity Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for HealthEquity's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:2HE vs HNGE, TEM, TXG: Return-on-Tangible-Equity Comparison
For the Health Information Services subindustry, HealthEquity's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
HealthEquity Return-on-Tangible-Equity vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, HealthEquity's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where HealthEquity's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Apr. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
HealthEquity (FRA:2HE) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Apr. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HealthEquity and its competitors. Over the past decade, HealthEquity's Return-on-Tangible-Equity has ranged from 16.27 to 22.71. According to the industry distribution chart, HealthEquity ranks #1 out of 579 companies in the Healthcare Providers & Services industry, placing it in the top 0.2%.
Is HealthEquity's Return-on-Tangible-Equity too high?
HealthEquity's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 16.27 to a high of 22.71. Based on the distribution chart, HealthEquity ranks #1 out of 579 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, HealthEquity has a GF Score™ of 93/100, reflecting its overall financial health beyond just this single metric.
How does HealthEquity's Return-on-Tangible-Equity compare to HNGE and TEM?
According to the Healthcare Providers & Services industry distribution chart, HealthEquity ranks #1 out of 579 companies for Return-on-Tangible-Equity. This places HealthEquity in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 10.21. Historically, HealthEquity's own Return-on-Tangible-Equity has ranged from 16.27 to 22.71 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Healthcare Providers & Services company?
The median Return-on-Tangible-Equity among Healthcare Providers & Services companies is 10.21, based on 579 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on HealthEquity and its competitors. For the Healthcare Providers & Services industry, the median Return-on-Tangible-Equity is 10.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HealthEquity's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HealthEquity stock overvalued right now?
HealthEquity (FRA:2HE) has a current Return-on-Tangible-Equity of Negative Tangible Equity%. The stock's GF Value™ is €89.27, compared to a current price of €81.50 — trading 8.7% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. HealthEquity's overall GF Score™ is 93/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For HealthEquity (FRA:2HE), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is HealthEquity (FRA:2HE) Overvalued in 2026?
Based on GuruFocus' analysis, HealthEquity stock appears to be undervalued.
The current stock price of €81.50 is trading 8.7% below its estimated GF Value™ of €89.27.
No single metric tells the full story. See the FRA:2HE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HealthEquity Inc provides solutions that allow consumers to make healthcare saving and spending decisions. It provides payment processing services, personalized benefit information, the ability to earn wellness incentives, and investment advice to grow their tax-advantaged healthcare savings. It manages consumers' tax-advantaged health savings accounts (HSAs) and other consumer-directed benefits (CDBs) offered by employers, including flexible spending accounts and health reimbursement arrangements (FSAs and HRAs), and administers Consolidated Omnibus Budget Reconciliation Act (COBRA), commuter and other benefits. It also provides investment advisory services to customers whose account balances exceed a certain threshold. HealthEquity generates its revenue in the United States.
93GF Score
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