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Waterdrop (WDH)
NYSE:WDH
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Waterdrop
(NYSE:WDH)
77Outperform
Waterdrop (WDH) vs. S&P 500 (SPY)
Market Cap
$447.90M
Dividend YieldN/A
Average Volume (3M)161.48K
Price to Earnings (P/E)10.1
Beta (1Y)0.41
Revenue Growth1.43%
EPS Growth41.44%
CountryUS
Employees2,960
SectorFinancial
Sector Strength77
IndustryInsurance
Share Statistics
EPS (TTM)0.12
Shares Outstanding288,749,970
10 Day Avg. Volume117,967
30 Day Avg. Volume161,480
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)N/A
Price to Sales (P/S)1.18
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Waterdrop Business Overview & Revenue Model
Company DescriptionWaterdrop Inc. (WDH) is a leading technology platform dedicated to providing insurance and healthcare services in China. Founded in 2016, the company operates through three main segments: insurance brokerage, medical crowdfunding, and mutual aid platforms. Waterdrop's core mission is to make healthcare more accessible and affordable for individuals by leveraging technology to offer innovative solutions and services tailored to the needs of its customers.
How the Company Makes MoneyWaterdrop Inc. generates revenue primarily through its insurance brokerage services, where it earns commissions from insurance companies for policies sold through its platform. Additionally, the company makes money from its medical crowdfunding platform by charging a service fee on funds raised. The mutual aid platform, although not a direct revenue source, helps in building a large user base which can be monetized through cross-selling insurance products. Significant partnerships with leading insurance companies and healthcare providers enhance Waterdrop's ability to offer a wide range of products and services, contributing to its revenue growth.
Waterdrop Financial Statement Overview
Summary
Waterdrop demonstrates a stable balance sheet with low leverage and strong equity ratios, which is advantageous in the insurance industry. However, the income statement reveals profitability challenges, with declining revenues and thin margins. Cash flow management is effective, although the recent decrease in free cash flow warrants attention. The company must focus on improving revenue growth and operational efficiencies to bolster financial performance.Income Statement
Waterdrop has seen a decrease in total revenue from 2022 to 2023, indicating a revenue decline of approximately 6.1%. The gross profit margin stands at 39.7%, reflecting moderate profitability. However, the net profit margin is low at 6.4%, and the company has a negative EBIT margin, indicating operational challenges. The EBITDA margin is slightly positive at 0.3%, but overall profitability remains a concern.65
Positive
Balance Sheet
The company exhibits a strong equity position with stockholders' equity representing 74.6% of total assets. The debt-to-equity ratio is low at 0.04, showcasing limited leverage. Return on equity is modest at 3.6%, reflecting low returns on investments.78
Positive
Cash Flow
Waterdrop's operating cash flow to net income ratio is 2.43, indicating efficient cash generation relative to earnings. However, free cash flow has decreased significantly from the previous year, resulting in a negative growth rate of -47.9%. The free cash flow to net income ratio is 2.35, suggesting effective cash flow management despite declining free cash flow.72
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.73B | 2.63B | 2.80B | 3.21B | 3.03B | 1.51B | Gross Profit |
| 1.84B | 1.04B | 1.78B | 2.15B | 2.29B | 1.22B | EBIT |
| -415.78M | -6.74M | 239.50M | -1.86B | -496.25M | -194.48M | EBITDA |
| -306.57M | 6.81M | 500.96M | -1.84B | -483.18M | -187.79M | Net Income Common Stockholders |
| -236.27M | 167.22M | 607.72M | -1.57B | -663.85M | -321.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 256.19M | 3.39B | 3.70B | 2.79B | 2.26B | 1.02B | Total Assets |
| 638.98M | 6.15B | 5.92B | 5.25B | 4.71B | 2.56B | Total Debt |
| 10.82M | 197.76M | 14.05M | 58.59M | 64.26M | 43.30M | Net Debt |
| -230.29M | -199.15M | -1.56B | -759.13M | -997.70M | -921.18M | Total Liabilities |
| 263.60M | 1.47B | 1.16B | 1.28B | 1.52B | 1.05B | Stockholders Equity |
| 375.38M | 4.59B | 4.77B | 3.97B | 3.18B | 1.50B |
| Cash Flow | Free Cash Flow | ||||
| -566.56M | 392.99M | 753.82M | -1.13B | -803.82M | -546.16M | Operating Cash Flow |
| -548.33M | 406.52M | 765.71M | -1.10B | -777.11M | -532.89M | Investing Cash Flow |
| -405.61M | -1.17B | -139.82M | -846.90M | -1.22B | -45.95M | Financing Cash Flow |
| 1.06B | -377.24M | -57.46M | 2.12B | 2.05B | 1.47B |
Waterdrop Technical Analysis
Negative
1.22
Price Trends
1.23
Negative
1.19
Positive
1.16
Positive
Market Momentum
<0.01
Positive
44.76
Neutral
51.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDH, the sentiment is Negative. The current price of 1.22 is below the 20-day moving average (MA) of 1.29, below the 50-day MA of 1.23, and above the 200-day MA of 1.16, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.76 is Neutral, neither overbought nor oversold. The STOCH value of 51.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDH.
Waterdrop Risk Analysis
Waterdrop disclosed 104 risk factors in its most recent earnings report. Waterdrop reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Waterdrop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $447.90M | 10.14 | 6.95% | ― | 1.43% | 41.44% | |
71 Outperform | $2.07B | 86.81 | 10.41% | ― | 158.57% | ― | |
69 Neutral | $3.89B | ― | 2.80% | ― | 56.54% | ― | |
64 Neutral | $14.85B | ― | -7.34% | ― | 46.27% | 74.39% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
62 Neutral | $692.76M | ― | -10.95% | ― | 77.44% | 85.53% | |
61 Neutral | $2.50B | ― | -31.05% | ― | 20.94% | 16.23% |
* Financial Sector Average
Performance Comparison
WDH
Waterdrop
1.22
0.05
4.27%
LMND
Lemonade
34.28
17.05
98.96%
ROOT
Root
135.89
89.12
190.55%
AFRM
Affirm Holdings
46.77
7.98
20.57%
HIPO
Hippo Holdings
27.62
8.77
46.53%
OSCR
Oscar Health
14.19
-0.06
-0.42%
Waterdrop Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: 0.83% | Next Earnings Date: Jun 12, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with significant achievements in revenue growth, profitability, and technological advancements, particularly in AI and insurtech. However, some challenges were noted in the insurance segment's revenue and operating costs.Highlights
Record Annual Revenue Growth
Waterdrop's annual revenue reached $2.77 billion, up by 5.4% year-over-year, with a solid Q4 performance of $687 million in total revenue.
Consistent Profitability
The company achieved a net profit attributable to ordinary shareholders of over $99.6 million in Q4 and has remained profitable for twelve consecutive quarters.
Cash Dividend Announcement
Waterdrop announced a cash dividend of $0.20 per ordinary share and $0.02 per ADS, reflecting the company's stable operations and significant profit increase.
AI and Insurtech Advancements
The company deployed AI tools and large language models in 2024, significantly enhancing online sales, broker support, and operational efficiencies.
Insurance Business Growth
The insurance business achieved FYP of about RMB1.9 billion, representing 24.5% year-over-year growth in Q4, driven by breakthroughs in customer acquisition channels.
Recognition and Compliance Achievements
Waterdrop Medical Crowdfunding was officially recognized as a pioneer in China's medical profiling sector, following new legislation and security designation.
Lowlights
Insurance Revenue Decline
Insurance-related revenue reached RMB $580 million, down 1% year-over-year and 3% quarter-on-quarter, indicating challenges in sustaining revenue growth.
Quarter-on-Quarter Insurance FYP Decrease
The insurance business showed a 7% quarter-on-quarter decrease in FYP despite overall growth, affected by product suspension and seasonal factors.
Operating Cost Increase
Operating costs increased by 7.2% year-over-year to $323.8 million in Q4, primarily due to a rise in referral and service fees.
Company Guidance
During the fourth quarter of fiscal year 2024, Waterdrop reported a solid financial performance with total revenue reaching $687 million, marking a 4.2% increase year-over-year. For the entire year, the company achieved a revenue of $2.77 billion, reflecting a 5.4% year-over-year growth. The net profit attributable to ordinary shareholders for Q4 was $99.6 million, contributing to a doubling of annual profits. Waterdrop announced a third cash dividend of $0.20 per ordinary share and $0.02 per ADS, with shareholders on record as of April 11, 2025, being eligible. The company also repurchased approximately 52.1 million ADS at a cost of $104 million. Waterdrop's insurance business reported a first-year premium (FYP) of about RMB1.9 billion, a 24.5% year-over-year increase, despite a 7% quarter-on-quarter decrease. Insurance-related revenue was RMB580 million, showing a 1% decrease from the previous year. The company continued its AI-driven initiatives, including launching AI tools and large language models, which contributed to enhancing operational efficiency while maintaining profitability. Waterdrop's cash position as of December 31, 2024, was $3.67 billion, supporting future growth plans.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.