Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.56M
• Price to Earnings (P/E): 281.1
• Beta (1Y): 0.81
• Revenue Growth: 18.25%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.32
• Shares Outstanding: 173,019,000
• 10 Day Avg. Volume: 1,343,993
• 30 Day Avg. Volume: 1,557,383
• PEG Ratio: 1.17
• Price to Book (P/B): 2.11
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.83
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 1.75
• Enterprise Value/Gross Profit: 10.63
• Enterprise Value/Ebitda: 5.26
• 1Y Price Target: $47.63
• Price Target Upside: 27.32% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 73 Outperform
• Price Target: $43.00 ▲(14.94%Upside)

Waystar's overall score is driven by its strong financial performance and positive earnings call, indicating robust growth and innovation. However, high valuation metrics and neutral technical indicators temper the score, alongside concerns about economic volatility.

Positive Factors

Contracts and Customer Base

Waystar signed 2-3 year contracts with new customers, which is expected to help maintain market share and capitalize on selling AI-driven solutions.

Financial Performance

Waystar's 1Q report delivered 3.5% revenue and 9.8% adj-EBITDA upside to estimates, solidifying its status as a focus name with a favorable outlook.

Market Share

Waystar shares outperformed the market as the company benefited from a cyberattack on a primary competitor, leading to significant market share gains.

Revenue and Profitability

The introduction of AltitudeAI offers increased confidence in Waystar's ability to sustain double-digit, high-margin revenue growth.

Negative Factors

Growth Concerns

Updated revenue guidance suggests growth below 10%, which some investors question, but management remains conservative.

Technological Disruption

AI may make it easier for providers to insource RCM and will accelerate the pace of innovation/disruption, presenting a significant risk.

Waystar Holding Corp. Business Overview & Revenue Model

Company Description

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How the Company Makes Money

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Waystar Holding Corp. Financial Statement Overview

Summary

Waystar Holding Corp. exhibits strong financial performance with consistent revenue growth and improved profitability metrics. The balance sheet is solid with reduced leverage and high equity financing, enhancing financial stability. Cash flow generation is robust, supporting potential growth and shareholder value creation.

Income Statement

Waystar Holding Corp. has shown a positive revenue growth trend with revenues increasing from $578.6M in 2021 to $975.2M in TTM 2025. The gross profit margin remains strong, reflecting the company's effective cost management. The net profit margin improved significantly in the TTM period as net income turned positive, indicating profitability improvement. However, EBIT and EBITDA margins show some volatility, suggesting room for operational efficiency enhancements.

Balance Sheet

The company's balance sheet indicates strong equity financing with a high equity ratio, suggesting low reliance on debt. The debt-to-equity ratio has improved significantly, reflecting better financial health and reduced leverage. Return on equity has turned positive in the TTM period, indicating enhanced shareholder value. Overall, the balance sheet portrays a stable financial position.

Cash Flow

Waystar has demonstrated robust cash flow generation with a substantial increase in free cash flow over the periods analyzed. The operating cash flow to net income ratio is strong in the TTM period, indicating effective conversion of net income into cash. The positive free cash flow growth rate signifies efficient capital management and potential for reinvestment or shareholder returns.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	975.19M	943.55M	791.01M	704.87M	578.57M
Gross Profit	607.03M	627.82M	541.24M	306.82M	250.74M
EBITDA	330.96M	318.93M	318.58M	287.50M	247.66M
Net Income	26.08M	-19.13M	-51.33M	-51.45M	-47.12M
Balance Sheet
Total Assets	4.62B	4.58B	4.58B	4.81B	4.89B
Cash, Cash Equivalents and Short-Term Investments	248.41M	182.13M	45.43M	72.64M	54.50M
Total Debt	40.97M	1.26B	2.25B	2.26B	2.30B
Total Liabilities	1.49B	1.50B	2.53B	2.70B	2.77B
Stockholders Equity	3.13B	3.08B	2.05B	2.11B	2.12B
Cash Flow
Free Cash Flow	196.15M	142.50M	29.94M	85.20M	91.86M
Operating Cash Flow	223.29M	169.77M	51.46M	102.63M	106.41M
Investing Cash Flow	-51.56M	-27.27M	-61.52M	-17.43M	-444.33M
Financing Cash Flow	7.19M	16.65M	-17.15M	-67.06M	331.50M

Waystar Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 37.41 is below the 20-day moving average (MA) of 38.62, below the 50-day MA of 39.32, and above the 200-day MA of 36.07, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 47.10 is Neutral, neither overbought nor oversold. The STOCH value of 15.29 is Positive, 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
WAY	73 Outperform	$6.47B	281.07	1.01%	―	18.25%	―
BTSG	70 Outperform	$3.57B	72.17	2.30%	―	23.40%	―
AHR	68 Neutral	$5.92B	―	-1.93%	2.73%	11.30%	―
ALAB	67 Neutral	$15.82B	408.78	4.47%	―	200.19%	―
Sector *	56 Neutral	$5.68B	21.87	-28.61%	5.64%	10.78%	-31.91%
RBRK	54 Neutral	$16.36B	―	218.28%	―	43.89%	49.74%
TEM	47 Neutral	$9.85B	―	-1252.79%	―	42.93%	-160.27%

Waystar Holding Corp. Corporate Events

Waystar Holding Corp. Expands Board with New Directors

Waystar Holding Corp. announced changes to its board of directors following its annual meeting on June 4, 2025. The board expanded from ten to twelve members, appointing Aashima Gupta and Michael Roman as independent directors. Gupta, with a background in healthcare technology, and Roman, a former CEO of 3M, bring diverse expertise to the board. Additionally, the company’s stockholders approved an amendment to the Certificate of Incorporation and re-elected three directors, while also ratifying KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025.

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.

Waystar Holding Corp. Expands Board with New Nominations

On May 9, 2025, Waystar Holding Corp.‘s Board approved a grant of performance stock units to CEO Matt Hawkins, tied to the company’s shareholder return relative to the S&P SmallCap 600 Information Technology sector over a four-year period. Additionally, the company plans to expand its board from ten to twelve directors, contingent on shareholder approval to amend its Certificate of Incorporation, with Aashima Gupta and Michael Roman nominated for new director roles.

The most recent analyst rating on (WAY) stock is a Buy with a $42.0000 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.