WATERDROP INC (WDH) Stock Fundamental Analysis
NYSE:WDH - New York Stock Exchange, Inc. - US94132V1052 - ADR - Currency: USD
WDH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. WDH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, WDH is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
WDH had positive earnings in the past year.
WDH had a positive operating cash flow in the past year.
In multiple years WDH reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: WDH reported negative operating cash flow in multiple years.
1.2 Ratios
WDH has a better Return On Assets (5.69%) than 90.21% of its industry peers.
Looking at the Return On Equity, with a value of 7.66%, WDH is in line with its industry, outperforming 45.45% of the companies in the same industry.
WDH's Return On Invested Capital of 2.72% is in line compared to the rest of the industry. WDH outperforms 56.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 7.66% | ||
| ROIC | 2.72% |
ROA(3y)6.23%
ROA(5y)-7.55%
ROE(3y)8.02%
ROE(5y)-10.84%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
WDH has a Profit Margin of 13.26%. This is in the better half of the industry: WDH outperforms 77.62% of its industry peers.
Looking at the Operating Margin, with a value of 6.43%, WDH is doing worse than 65.73% of the companies in the same industry.
The Gross Margin of WDH (52.57%) is better than 95.10% of its industry peers.
In the last couple of years the Gross Margin of WDH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.43% | ||
| PM (TTM) | 13.26% | ||
| GM | 52.57% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-7.82%
GM growth 5Y-8.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so WDH is destroying value.
WDH has less shares outstanding than it did 1 year ago.
WDH has less shares outstanding than it did 5 years ago.
WDH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 1.91 indicates that WDH is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.91, WDH belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
The Debt to FCF ratio of WDH is 0.91, which is an excellent value as it means it would take WDH, only 0.91 years of fcf income to pay off all of its debts.
WDH has a Debt to FCF ratio of 0.91. This is in the better half of the industry: WDH outperforms 65.73% of its industry peers.
WDH has a Debt/Equity ratio of 0.04. This is a healthy value indicating a solid balance between debt and equity.
WDH has a better Debt to Equity ratio (0.04) than 87.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.91 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.38
WACC7.24%
2.3 Liquidity
WDH has a Current Ratio of 3.12. This indicates that WDH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.12, WDH belongs to the top of the industry, outperforming 94.41% of the companies in the same industry.
WDH has a Quick Ratio of 3.12. This indicates that WDH is financially healthy and has no problem in meeting its short term obligations.
WDH's Quick ratio of 3.12 is amongst the best of the industry. WDH outperforms 94.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 3.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 415.44% over the past year.
The Revenue has been growing slightly by 5.36% in the past year.
The Revenue has been growing by 12.90% on average over the past years. This is quite good.
EPS 1Y (TTM)415.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
Revenue 1Y (TTM)5.36%
Revenue growth 3Y-4.73%
Revenue growth 5Y12.9%
Sales Q2Q%1.32%
3.2 Future
Based on estimates for the next years, WDH will show a very negative growth in Earnings Per Share. The EPS will decrease by -41.41% on average per year.
The Revenue is expected to grow by 61.59% on average over the next years. This is a very strong growth
EPS Next Y-76.8%
EPS Next 2Y-49.45%
EPS Next 3Y-41.41%
EPS Next 5YN/A
Revenue Next Year17.68%
Revenue Next 2Y14.23%
Revenue Next 3Y12.49%
Revenue Next 5Y61.59%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
WDH is valuated quite expensively with a Price/Earnings ratio of 27.20.
74.83% of the companies in the same industry are cheaper than WDH, based on the Price/Earnings ratio.
WDH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.85.
With a Price/Forward Earnings ratio of 128.00, WDH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, WDH is valued more expensive than 81.12% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.89, WDH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 128 |
4.2 Price Multiples
WDH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.19 | ||
| EV/EBITDA | -3.52 |
4.3 Compensation for Growth
A cheap valuation may be justified as WDH's earnings are expected to decrease with -41.41% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-49.45%
EPS Next 3Y-41.41%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.26%, WDH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.20, WDH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, WDH's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
5.2 History
WDH does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
WDH pays out 43.17% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP43.17%
EPS Next 2Y-49.45%
EPS Next 3Y-41.41%
1.36
+0.05 (+3.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners5.8%
Inst Owner Change3.02%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap491.86M
Analysts85
Price Target1.84 (35.29%)
Short Float %0.19%
Short Ratio0.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.26% |
Yearly Dividend0.06
Dividend Growth(5Y)N/A
DP43.17%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-28.23%
Min EPS beat(2)-100%
Max EPS beat(2)43.54%
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
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)-1.8%
Min Revenue beat(2)-2.35%
Max Revenue beat(2)-1.26%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
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)1.81%
PT rev (3m)8.39%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-22.27%
EPS NY rev (3m)-46.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)7.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.2 | ||
| Fwd PE | 128 | ||
| P/S | 1.28 | ||
| P/FCF | 16.19 | ||
| P/OCF | 8.1 | ||
| P/B | 0.74 | ||
| P/tB | 0.78 | ||
| EV/EBITDA | -3.52 |
EPS(TTM)0.05
EY3.68%
EPS(NY)0.01
Fwd EY0.78%
FCF(TTM)0.08
FCFY6.18%
OCF(TTM)0.17
OCFY12.34%
SpS1.06
BVpS1.84
TBVpS1.75
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.69% | ||
| ROE | 7.66% | ||
| ROCE | 3.59% | ||
| ROIC | 2.72% | ||
| ROICexc | 5.48% | ||
| ROICexgc | 6.03% | ||
| OM | 6.43% | ||
| PM (TTM) | 13.26% | ||
| GM | 52.57% | ||
| FCFM | 7.89% |
ROA(3y)6.23%
ROA(5y)-7.55%
ROE(3y)8.02%
ROE(5y)-10.84%
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-7.82%
GM growth 5Y-8.22%
F-Score7
Asset Turnover0.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.04 | ||
| Debt/FCF | 0.91 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 1887.77% | ||
| Cap/Sales | 7.88% | ||
| Interest Coverage | 94.66 | ||
| Cash Conversion | 230.46% | ||
| Profit Quality | 59.55% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 3.12 | ||
| Altman-Z | 1.91 |
F-Score7
WACC7.24%
ROIC/WACC0.38
Cap/Depr(3y)679.75%
Cap/Depr(5y)489.06%
Cap/Sales(3y)2.94%
Cap/Sales(5y)2.17%
Profit Quality(3y)139.53%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)415.44%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y-76.8%
EPS Next 2Y-49.45%
EPS Next 3Y-41.41%
EPS Next 5YN/A
Revenue 1Y (TTM)5.36%
Revenue growth 3Y-4.73%
Revenue growth 5Y12.9%
Sales Q2Q%1.32%
Revenue Next Year17.68%
Revenue Next 2Y14.23%
Revenue Next 3Y12.49%
Revenue Next 5Y61.59%
EBIT growth 1Y2742.12%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year0.56%
EBIT Next 3Y13.93%
EBIT Next 5YN/A
FCF growth 1Y-44.32%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y7.56%
OCF growth 3YN/A
OCF growth 5YN/A