Waystar Holding Corp.
Waystar Holding Corp. Fundamental Analysis
Waystar Holding Corp. (WAY) shows moderate financial fundamentals with a PE ratio of 42.88, profit margin of 10.20%, and ROE of 3.35%. The company generates $1.1B in annual revenue with strong year-over-year growth of 16.50%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WAY's fundamental strength across five key dimensions:
Efficiency Score
WeakWAY struggles to generate sufficient returns from assets.
Valuation Score
ModerateWAY shows balanced valuation metrics.
Growth Score
ModerateWAY shows steady but slowing expansion.
Financial Health Score
ExcellentWAY maintains a strong and stable balance sheet.
Profitability Score
WeakWAY struggles to sustain strong margins.
Key Financial Metrics
Is WAY Expensive or Cheap?
P/E Ratio
WAY trades at 42.88 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WAY's PEG of -27.87 indicates potential undervaluation.
Price to Book
The market values Waystar Holding Corp. at 1.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 11.91 times EBITDA. This signals the market has high growth expectations.
How Well Does WAY Make Money?
Net Profit Margin
For every $100 in sales, Waystar Holding Corp. keeps $10.20 as profit after all expenses.
Operating Margin
Core operations generate 24.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $3.35 in profit for every $100 of shareholder equity.
ROA
Waystar Holding Corp. generates $1.94 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Waystar Holding Corp. generates strong operating cash flow of $309.55M, reflecting robust business health.
Free Cash Flow
Waystar Holding Corp. generates strong free cash flow of $283.08M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.48 in free cash annually.
FCF Yield
WAY converts 5.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
42.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-27.87
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.008
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.41
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How WAY Stacks Against Its Sector Peers
| Metric | WAY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 42.88 | 35.19 | Worse (Expensive) |
| ROE | 3.35% | 1155.00% | Weak |
| Net Margin | 10.20% | -127067.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.41 | 4.71 | Neutral |
| ROA | 1.94% | -314918.00% (disorted) | Weak |
WAY outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Waystar Holding Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
77.97%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
322.84%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
172.60%
Industry Style: Growth, Innovation, High Beta
High Growth