WAYSTAR HOLDING CORP (WAY) Stock Fundamental Analysis
NASDAQ:WAY - Nasdaq - US9467841055 - Common Stock - Currency: USD
WAY gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 industry peers in the Health Care Technology industry. Both the profitability and the financial health of WAY get a neutral evaluation. Nothing too spectacular is happening here. WAY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
WAY had positive earnings in the past year.
WAY had a positive operating cash flow in the past year.
1.2 Ratios
With an excellent Return On Assets value of 0.56%, WAY belongs to the best of the industry, outperforming 86.11% of the companies in the same industry.
WAY has a better Return On Equity (0.83%) than 86.11% of its industry peers.
With an excellent Return On Invested Capital value of 2.71%, WAY belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for WAY is below the industry average of 6.38%.
The last Return On Invested Capital (2.71%) for WAY is above the 3 year average (2.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.83% | ||
| ROIC | 2.71% |
ROA(3y)-0.88%
ROA(5y)N/A
ROE(3y)-1.85%
ROE(5y)N/A
ROIC(3y)2.09%
ROIC(5y)N/A
1.3 Margins
WAY has a Profit Margin of 2.67%. This is amongst the best in the industry. WAY outperforms 86.11% of its industry peers.
WAY has a better Operating Margin (15.77%) than 94.44% of its industry peers.
In the last couple of years the Operating Margin of WAY has grown nicely.
WAY has a better Gross Margin (66.79%) than 66.67% of its industry peers.
WAY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.77% | ||
| PM (TTM) | 2.67% | ||
| GM | 66.79% |
OM growth 3Y7.95%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), WAY is destroying value.
WAY has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, WAY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.20 indicates that WAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of WAY (3.20) is better than 75.00% of its industry peers.
WAY has a debt to FCF ratio of 6.33. This is a slightly negative value and a sign of low solvency as WAY would need 6.33 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.33, WAY is in line with its industry, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.39 indicates that WAY is not too dependend on debt financing.
The Debt to Equity ratio of WAY (0.39) is worse than 63.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.33 | ||
| Altman-Z | 3.2 |
ROIC/WACC0.25
WACC10.76%
2.3 Liquidity
WAY has a Current Ratio of 3.12. This indicates that WAY is financially healthy and has no problem in meeting its short term obligations.
WAY has a Current ratio of 3.12. This is in the better half of the industry: WAY outperforms 75.00% of its industry peers.
A Quick Ratio of 3.12 indicates that WAY has no problem at all paying its short term obligations.
With a decent Quick ratio value of 3.12, WAY is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 3.12 |
3. Growth
3.1 Past
WAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.57%, which is quite impressive.
The Revenue has grown by 19.28% in the past year. This is quite good.
The Revenue has been growing by 17.71% on average over the past years. This is quite good.
EPS 1Y (TTM)58.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%269.46%
Revenue 1Y (TTM)19.28%
Revenue growth 3Y17.71%
Revenue growth 5YN/A
Sales Q2Q%14.08%
3.2 Future
The Earnings Per Share is expected to grow by 75.25% on average over the next years. This is a very strong growth
Based on estimates for the next years, WAY will show a quite strong growth in Revenue. The Revenue will grow by 9.84% on average per year.
EPS Next Y320.61%
EPS Next 2Y117.61%
EPS Next 3Y75.25%
EPS Next 5YN/A
Revenue Next Year9.25%
Revenue Next 2Y9.29%
Revenue Next 3Y9.84%
Revenue Next 5YN/A
3.3 Evolution
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 52.10, WAY can be considered very expensive at the moment.
WAY's Price/Earnings ratio is a bit cheaper when compared to the industry. WAY is cheaper than 75.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.52, WAY is valued quite expensively.
With a Price/Forward Earnings ratio of 27.41, WAY can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WAY is valued a bit cheaper than 75.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of WAY to the average of the S&P500 Index (22.25), we can say WAY is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 27.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, WAY is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
77.78% of the companies in the same industry are more expensive than WAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.31 | ||
| EV/EBITDA | 24.55 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of WAY may justify a higher PE ratio.
A more expensive valuation may be justified as WAY's earnings are expected to grow with 75.25% in the coming years.
PEG (NY)0.16
PEG (5Y)N/A
EPS Next 2Y117.61%
EPS Next 3Y75.25%
5. Dividend
5.1 Amount
WAY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
41.16
+1.07 (+2.67%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Technology
Earnings (Last)
Earnings (Next)
Inst Owners52.21%
Inst Owner Change9.99%
Ins Owners1.11%
Ins Owner Change5.95%
Market Cap7.12B
Analysts85
Price Target49.19 (19.51%)
Short Float %5.12%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1
Avg EPS beat(2)51.34%
Min EPS beat(2)-1.27%
Max EPS beat(2)103.96%
EPS beat(4)3
Avg EPS beat(4)113.84%
Min EPS beat(4)-1.27%
Max EPS beat(4)322.74%
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)2
Avg Revenue beat(2)3.24%
Min Revenue beat(2)2.36%
Max Revenue beat(2)4.13%
Revenue beat(4)4
Avg Revenue beat(4)5.04%
Min Revenue beat(4)2.36%
Max Revenue beat(4)7.44%
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)0.88%
PT rev (3m)-4.41%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)1.36%
EPS NY rev (1m)0.43%
EPS NY rev (3m)26.5%
Revenue NQ rev (1m)0.63%
Revenue NQ rev (3m)1.02%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.1 | ||
| Fwd PE | 27.41 | ||
| P/S | 7.3 | ||
| P/FCF | 36.31 | ||
| P/OCF | 31.89 | ||
| P/B | 2.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.55 |
EPS(TTM)0.79
EY1.92%
EPS(NY)1.5
Fwd EY3.65%
FCF(TTM)1.13
FCFY2.75%
OCF(TTM)1.29
OCFY3.14%
SpS5.64
BVpS18.07
TBVpS-5.23
PEG (NY)0.16
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.56% | ||
| ROE | 0.83% | ||
| ROCE | 3.43% | ||
| ROIC | 2.71% | ||
| ROICexc | 2.87% | ||
| ROICexgc | 61.18% | ||
| OM | 15.77% | ||
| PM (TTM) | 2.67% | ||
| GM | 66.79% | ||
| FCFM | 20.11% |
ROA(3y)-0.88%
ROA(5y)N/A
ROE(3y)-1.85%
ROE(5y)N/A
ROIC(3y)2.09%
ROIC(5y)N/A
ROICexc(3y)2.13%
ROICexc(5y)N/A
ROICexgc(3y)47.51%
ROICexgc(5y)N/A
ROCE(3y)2.64%
ROCE(5y)N/A
ROICexcg growth 3Y7.56%
ROICexcg growth 5YN/A
ROICexc growth 3Y30.65%
ROICexc growth 5YN/A
OM growth 3Y7.95%
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.38%
GM growth 5YN/A
F-Score7
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 6.33 | ||
| Debt/EBITDA | 3.73 | ||
| Cap/Depr | 15.43% | ||
| Cap/Sales | 2.78% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 67.75% | ||
| Profit Quality | 752.24% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 3.12 | ||
| Altman-Z | 3.2 |
F-Score7
WACC10.76%
ROIC/WACC0.25
Cap/Depr(3y)12.11%
Cap/Depr(5y)N/A
Cap/Sales(3y)2.69%
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.57%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%269.46%
EPS Next Y320.61%
EPS Next 2Y117.61%
EPS Next 3Y75.25%
EPS Next 5YN/A
Revenue 1Y (TTM)19.28%
Revenue growth 3Y17.71%
Revenue growth 5YN/A
Sales Q2Q%14.08%
Revenue Next Year9.25%
Revenue Next 2Y9.29%
Revenue Next 3Y9.84%
Revenue Next 5YN/A
EBIT growth 1Y-12.92%
EBIT growth 3Y27.06%
EBIT growth 5YN/A
EBIT Next Year127.15%
EBIT Next 3Y40.45%
EBIT Next 5YN/A
FCF growth 1Y375.9%
FCF growth 3Y15.76%
FCF growth 5YN/A
OCF growth 1Y229.9%
OCF growth 3Y16.85%
OCF growth 5YN/A