Waterdrop Inc.
Waterdrop Inc. Fundamental Analysis
Waterdrop Inc. (WDH) shows moderate financial fundamentals with a PE ratio of 8.88, profit margin of 15.76%, and ROE of 10.38%. The company generates $3.3B in annual revenue with moderate year-over-year growth of 5.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 57.4/100 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 WDH's fundamental strength across five key dimensions:
Efficiency Score
WeakWDH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWDH trades at attractive valuation levels.
Growth Score
ModerateWDH shows steady but slowing expansion.
Financial Health Score
ExcellentWDH maintains a strong and stable balance sheet.
Profitability Score
WeakWDH struggles to sustain strong margins.
Key Financial Metrics
Is WDH Expensive or Cheap?
P/E Ratio
WDH trades at 8.88 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WDH's PEG of 0.08 indicates potential undervaluation.
Price to Book
The market values Waterdrop Inc. at 0.90 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.14 times EBITDA. This signals the market has high growth expectations.
How Well Does WDH Make Money?
Net Profit Margin
For every $100 in sales, Waterdrop Inc. keeps $15.76 as profit after all expenses.
Operating Margin
Core operations generate 10.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.38 in profit for every $100 of shareholder equity.
ROA
Waterdrop Inc. generates $7.75 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Waterdrop Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
Waterdrop Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
WDH converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.88
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.90
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.40
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.60
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How WDH Stacks Against Its Sector Peers
| Metric | WDH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.88 | 18.86 | Better (Cheaper) |
| ROE | 10.38% | 847.00% | Weak |
| Net Margin | 15.76% | 4202.00% | Weak |
| Debt/Equity | 0.02 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 2.60 | 667.17 | Strong Liquidity |
| ROA | 7.75% | -21543.00% (disorted) | Weak |
WDH outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Waterdrop Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.49%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
199.99%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
171.78%
Industry Style: Value, Dividend, Cyclical
High Growth