Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.67B
• Dividend Yield: N/A
• Average Volume (3M): 3.61M
• Price to Earnings (P/E): 80.3
• Beta (1Y): 0.76
• Revenue Growth: 17.14%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.36
• Shares Outstanding: 174,238,970
• 10 Day Avg. Volume: 2,996,495
• 30 Day Avg. Volume: 3,613,504
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 22.15
• 1Y Price Target: $48.42
• Price Target Upside: 26.52% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 71 Outperform
• Price Target: $41.00 ▲(7.13% Upside)

Waystar's strong financial performance and positive earnings call are the most significant factors driving the stock score. However, the high P/E ratio and neutral technical indicators moderate the overall score. The company's strategic initiatives and AI innovations position it well for future growth, but valuation concerns and potential regulatory impacts warrant caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Strategic Acquisition

The acquisition is expected to expand Waystar's market by over 15%, enhancing its competitive position and revenue potential.

AI-Powered Innovations

AI innovations improve operational efficiency and client outcomes, strengthening Waystar's value proposition and market leadership.

Negative Factors

Regulatory Impact

Regulatory changes could introduce uncertainties and impact revenue streams, requiring strategic adjustments to mitigate potential risks.

Seasonal Revenue Decline

Seasonal revenue fluctuations may impact short-term financial performance, necessitating effective management to sustain growth.

Low Return on Equity

Despite improvements, a low ROE suggests limited efficiency in generating returns from equity, indicating potential for better capital utilization.

Waystar Holding Corp. Business Overview & Revenue Model

Company Description

Waystar Holding Corp. develops a cloud-based software solution for healthcare payments. Its platform offers financial clearance, patient financial care, claim and payment management, denial prevention and recovery, revenue capture, and analytics and reporting solutions. The company primarily serves healthcare industry. Waystar Holding Corp. was founded in 2017 and is based in Lehi, Utah.

How the Company Makes Money

Waystar generates revenue through a subscription-based model, where healthcare providers pay for access to its suite of software solutions. The company offers various pricing tiers based on the size of the healthcare provider and the specific services utilized. Key revenue streams include transaction fees from payment processing, software licensing fees, and professional services for implementation and support. Additionally, Waystar has formed strategic partnerships with other technology providers and healthcare organizations to expand its market reach and enhance its product offerings, contributing significantly to its earnings.

Waystar Holding Corp. Financial Statement Overview

Summary

Waystar Holding Corp. exhibits strong financial performance with significant improvements in profitability and cash flow generation. The company demonstrates efficient cost management and reduced leverage, although there is potential to further enhance return on equity.

Income Statement

Waystar Holding Corp. demonstrated a strong revenue growth trajectory with the latest TTM (Trailing-Twelve-Months) revenue increasing by 7.2% from the previous annual period. The company's gross profit margin stands at 67.3% TTM, indicating efficient cost management. The net profit margin improved significantly to 8.5% TTM, a positive turnaround from previous losses. EBIT and EBITDA margins also reflect strength at 20.8% and 33.8% TTM respectively, showing robust operating performance.

Balance Sheet

The balance sheet of Waystar Holding Corp. is characterized by a solid equity position with an equity ratio of 67.8% TTM, indicating financial stability. The company has successfully reduced its debt, reflected in a low debt-to-equity ratio of 0.01 TTM. Return on equity (ROE) has improved significantly to 2.7% TTM, signifying enhanced profitability. However, the relatively low ROE suggests there is room for further leveraging equity to drive profitability.

Cash Flow

Waystar Holding Corp. shows strong cash flow metrics, with a substantial free cash flow growth rate of 95.5% TTM. The operating cash flow to net income ratio is robust at 3.5, indicating effective conversion of income into cash. Free cash flow to net income ratio is also healthy at 3.2, demonstrating strong cash generation relative to earnings. Overall, the cash flow position supports future growth and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	943.55M	791.01M	704.87M	578.57M
Gross Profit	680.83M	627.82M	541.24M	489.98M	426.80M
EBITDA	375.37M	310.36M	318.55M	272.62M	236.37M
Net Income	85.94M	-19.13M	-51.33M	-51.45M	-47.12M
Balance Sheet
Total Assets	4.68B	4.58B	4.58B	4.81B	4.89B
Cash, Cash Equivalents and Short-Term Investments	340.79M	182.13M	45.43M	72.64M	54.50M
Total Debt	1.26B	1.26B	2.25B	2.26B	2.30B
Total Liabilities	1.50B	1.50B	2.53B	2.70B	2.77B
Stockholders Equity	3.17B	3.08B	2.05B	2.11B	2.12B
Cash Flow
Free Cash Flow	278.56M	142.50M	29.94M	85.20M	91.86M
Operating Cash Flow	304.60M	169.77M	51.46M	102.63M	106.41M
Investing Cash Flow	-76.56M	-27.27M	-61.52M	-17.43M	-444.33M
Financing Cash Flow	2.97M	16.65M	-17.15M	-67.06M	331.50M

Waystar Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 38.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAY, the sentiment is Positive. The current price of 38.27 is above the 20-day moving average (MA) of 38.01, above the 50-day MA of 36.96, and below the 200-day MA of 38.29, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 51.02 is Neutral, neither overbought nor oversold. The STOCH value of 71.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAY.

Waystar Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	77 Outperform	$6.87B	29.45	24.70%	―	15.15%	34.33%
G	76 Outperform	$7.16B	13.67	21.86%	1.63%	7.37%	-14.64%
PAY	73 Outperform	$4.13B	75.60	11.59%	―	49.35%	72.05%
WAY	71 Outperform	$6.67B	80.33	2.81%	―	17.14%	―
EPAM	68 Neutral	$8.49B	21.75	11.36%	―	9.73%	-0.29%
SAIC	60 Neutral	$4.73B	12.29	25.40%	1.44%	2.23%	48.38%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Waystar Holding Corp. Corporate Events

Waystar Announces Underwriting Agreement with J.P. Morgan

On September 10, 2025, Waystar Holding Corp. announced an underwriting agreement with J.P. Morgan Securities LLC for an offering of 18,000,000 shares of its common stock. The company will not receive any proceeds from this offering, which is expected to close on September 12, 2025, indicating a strategic move that may impact stakeholders by altering the distribution of shares without affecting the company’s immediate financial position.

The most recent analyst rating on (WAY) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.