WATERDROP INC(NYSE:WDH) stock Fundamental Analysis

Fundamental Rating

WDH gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 144 industry peers in the Insurance industry. While WDH seems to be doing ok healthwise, there are quite some concerns on its profitability. WDH shows excellent growth, but is valued quite expensive already.

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1. Profitability

1.1 Basic Checks

In the past year WDH was profitable.

The reported net income has been mixed in the past 5 years: WDH reported negative net income in multiple years.

In the past 5 years WDH reported 4 times negative operating cash flow.

1.2 Ratios

WDH has a Return On Assets of 2.72%. This is comparable to the rest of the industry: WDH outperforms 56.03% of its industry peers.

The Return On Equity of WDH (3.65%) is worse than 71.63% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.72%
ROE	3.65%
ROIC	N/A

ROA(3y)-6.63%

ROA(5y)-12.28%

ROE(3y)-9.02%

ROE(5y)-18.48%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

WDH has a Profit Margin of 6.36%. This is comparable to the rest of the industry: WDH outperforms 48.23% of its industry peers.

With an excellent Gross Margin value of 54.56%, WDH belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.

In the last couple of years the Gross Margin of WDH has declined.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	6.36%
GM	54.56%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-10.26%

GM growth 5Y-7.54%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

WDH does not have a ROIC to compare to the WACC, probably because it is not profitable.

WDH has about the same amout of shares outstanding than it did 1 year ago.

WDH has less shares outstanding than it did 5 years ago.

The debt/assets ratio for WDH is higher compared to a year ago.

2.2 Solvency

WDH has an Altman-Z score of 1.99. This is not the best score and indicates that WDH is in the grey zone with still only limited risk for bankruptcy at the moment.

Looking at the Altman-Z score, with a value of 1.99, WDH belongs to the top of the industry, outperforming 90.07% of the companies in the same industry.

A Debt/Equity ratio of 0.03 indicates that WDH is not too dependend on debt financing.

The Debt to Equity ratio of WDH (0.03) is better than 89.36% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.03
Debt/FCF	N/A
Altman-Z	1.99

ROIC/WACCN/A

WACC7.54%

2.3 Liquidity

A Current Ratio of 3.96 indicates that WDH has no problem at all paying its short term obligations.

WDH has a better Current ratio (3.96) than 94.33% of its industry peers.

WDH has a Quick Ratio of 3.96. This indicates that WDH is financially healthy and has no problem in meeting its short term obligations.

WDH's Quick ratio of 3.96 is amongst the best of the industry. WDH outperforms 94.33% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.96
Quick Ratio	3.96

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 352.94% over the past year.

WDH shows a decrease in Revenue. In the last year, the revenue decreased by -6.11%.

WDH shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 61.68% yearly.

EPS 1Y (TTM)352.94%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-100%

Revenue 1Y (TTM)-6.11%

Revenue growth 3Y-4.58%

Revenue growth 5Y61.68%

Sales Q2Q%5.89%

3.2 Future

WDH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.99% yearly.

Based on estimates for the next years, WDH will show a very strong growth in Revenue. The Revenue will grow by 61.23% on average per year.

EPS Next Y98.64%

EPS Next 2Y49.59%

EPS Next 3Y33.99%

EPS Next 5YN/A

Revenue Next Year2.93%

Revenue Next 2Y6.07%

Revenue Next 3Y7.43%

Revenue Next 5Y61.23%

3.3 Evolution

The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 33.25, WDH can be considered very expensive at the moment.

WDH's Price/Earnings ratio is a bit more expensive when compared to the industry. WDH is more expensive than 79.43% of the companies in the same industry.

WDH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.

WDH is valuated quite expensively with a Price/Forward Earnings ratio of 67.42.

WDH's Price/Forward Earnings ratio is rather expensive when compared to the industry. WDH is more expensive than 80.14% of the companies in the same industry.

WDH is valuated expensively when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	33.25
Fwd PE	67.42

4.2 Price Multiples

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	N/A

4.3 Compensation for Growth

WDH's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

WDH's earnings are expected to grow with 33.99% in the coming years. This may justify a more expensive valuation.

PEG (NY)0.34

PEG (5Y)N/A

EPS Next 2Y49.59%

EPS Next 3Y33.99%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 6.34%, WDH is a good candidate for dividend investing.

Compared to an average industry Dividend Yield of 3.10, WDH pays a better dividend. On top of this WDH pays more dividend than 92.91% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.27, WDH pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	6.34%

5.2 History

WDH is new to the dividend game and has less than 3 years of track record.

Dividend Growth(5Y)N/A

Div Incr Years0

Div Non Decr Years0

5.3 Sustainability

DPN/A

EPS Next 2Y49.59%

EPS Next 3Y33.99%

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WATERDROP INC

NYSE:WDH (2/21/2025, 8:04:00 PM)

After market: 1.32 -0.01 (-0.75%)

1.33

+0.01 (+0.76%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupInsurance

GICS IndustryInsurance

Earnings (Last)12-11 2024-12-11/bmo

Earnings (Next)N/A N/A

Inst Owners5.8%

Inst Owner Change133.51%

Ins OwnersN/A

Ins Owner ChangeN/A

Market Cap490.69M

Analysts82.86

Price Target1.7 (27.82%)

Short Float %0.59%

Short Ratio0.69

Dividend

		Industry Rank	Sector Rank
Dividend Yield	6.34%

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-61%

Min EPS beat(2)-100%

Max EPS beat(2)-22%

EPS beat(4)1

Avg EPS beat(4)-13.28%

Min EPS beat(4)-100%

Max EPS beat(4)85.41%

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-4.96%

Min Revenue beat(2)-6.78%

Max Revenue beat(2)-3.14%

Revenue beat(4)0

Avg Revenue beat(4)-9%

Min Revenue beat(4)-20.16%

Max Revenue beat(4)-3.14%

Revenue beat(8)N/A

Avg Revenue beat(8)N/A

Revenue beat(12)N/A

Avg Revenue beat(12)N/A

Revenue beat(16)N/A

Avg Revenue beat(16)N/A

PT rev (1m)0%

PT rev (3m)-2.06%

EPS NQ rev (1m)N/A

EPS NQ rev (3m)N/A

EPS NY rev (1m)42.35%

EPS NY rev (3m)2.53%

Revenue NQ rev (1m)N/A

Revenue NQ rev (3m)N/A

Revenue NY rev (1m)0%

Revenue NY rev (3m)-5.83%

Valuation

		Industry Rank	Sector Rank
PE	33.25
Fwd PE	67.42
P/S	1.35
P/FCF	N/A
P/OCF	N/A
P/B	0.78
P/tB	0.82
EV/EBITDA	N/A

EPS(TTM)0.04

EY3.01%

EPS(NY)0.02

Fwd EY1.48%

FCF(TTM)N/A

FCFYN/A

OCF(TTM)N/A

OCFYN/A

SpS0.98

BVpS1.71

TBVpS1.62

PEG (NY)0.34

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	2.72%
ROE	3.65%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	6.36%
GM	54.56%
FCFM	N/A

ROA(3y)-6.63%

ROA(5y)-12.28%

ROE(3y)-9.02%

ROE(5y)-18.48%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y-10.26%

GM growth 5Y-7.54%

F-ScoreN/A

Asset Turnover0.43

Health

		Industry Rank	Sector Rank
Debt/Equity	0.03
Debt/FCF	N/A
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	N/A
Current Ratio	3.96
Quick Ratio	3.96
Altman-Z	1.99

F-ScoreN/A

WACC7.54%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)352.94%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-100%

EPS Next Y98.64%

EPS Next 2Y49.59%

EPS Next 3Y33.99%

EPS Next 5YN/A

Revenue 1Y (TTM)-6.11%

Revenue growth 3Y-4.58%

Revenue growth 5Y61.68%

Sales Q2Q%5.89%

Revenue Next Year2.93%

Revenue Next 2Y6.07%

Revenue Next 3Y7.43%

Revenue Next 5Y61.23%

EBIT growth 1Y-101.41%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year-29.2%

EBIT Next 3Y0.77%

EBIT Next 5YN/A

FCF growth 1YN/A

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1YN/A

OCF growth 3YN/A

OCF growth 5YN/A

WATERDROP INC (WDH) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens