Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $4.59B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 39.2
• Beta (1Y): 0.87
• Revenue Growth: 14.75%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 191,316,590
• 10 Day Avg. Volume: 2,043,277
• 30 Day Avg. Volume: 1,684,543
• PEG Ratio: 4.95
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 5.83
• P/FCF Ratio: 38.61
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 6.01
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $44.14
• Price Target Upside: 83.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 1.63
• Revenue Forecast (FY): $1.28B

• Rating: 68 Neutral
• Price Target: $27.00 ▲(12.55% Upside)

Waystar Holding Corp. shows strong financial performance and positive earnings call highlights, particularly with its revenue growth and strategic acquisition. However, the stock's technical indicators suggest a bearish trend, and its high P/E ratio indicates potential overvaluation. These factors contribute to a balanced overall score.

Positive Factors

Revenue Growth & Margin

Waystar's 12% YoY revenue increase to $269M alongside a 42% adjusted EBITDA margin demonstrates scalable recurring revenue and strong operational leverage. Sustained top-line growth with high EBITDA margins supports continued investment in product, sales, and AI capabilities over multiple quarters.

Strong Cash Generation

Robust cash conversion—high operating cash flow relative to net income and FCF near net income—indicates Waystar reliably turns earnings into cash. This durable cash generation reduces refinancing risk, funds organic investments and M&A, and supports longer-term product development and balance sheet resilience.

Strategic Acquisition (Iodine)

The Iodine acquisition materially expands addressable market and client footprint, adding nearly 150 health systems and over 1,000 hospitals and accelerating the AI mid-cycle roadmap by ~2 years. This strengthens cross-sell opportunities and durable market positioning in healthcare revenue cycle tech.

Negative Factors

Low Net Profit Margin

A modest net margin (8.5%) versus strong gross (67.3%) and EBIT (20.8%) margins suggests substantial non-operating costs or tax/interest drag. Persistently low net profitability can limit retained earnings for reinvestment, constrain ROE improvement, and reduce resilience to margin pressure.

Data Fragmentation Risks

Waystar flags data fragmentation that reduces AI effectiveness. Because healthcare data remains siloed and inconsistent, this is a structural challenge that can slow AI-driven differentiation, increase customer onboarding costs, and limit the pace at which automated denial prevention and recovery scale across clients.

Integration & Cybersecurity

Complex EHR integrations and cybersecurity demands create persistent implementation and compliance costs. These structural hurdles can delay deployments, raise engineering and support expenses, and increase reputational and regulatory risk, potentially slowing enterprise adoption and contract conversion rates.

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, offering its software solutions to healthcare providers, which include hospitals, clinics, and outpatient facilities. The company charges fees for access to its platform, which encompasses various services such as claims management, patient billing, and analytics. Key revenue streams include recurring subscription fees, transaction fees associated with payment processing, and additional services like consulting and support. Partnerships with healthcare organizations and technology providers also contribute significantly to its revenue, as they expand Waystar's market reach and enhance service offerings.

Waystar Holding Corp. Financial Statement Overview

Summary

Waystar Holding Corp. demonstrates solid financial health with strong revenue growth and efficient cash flow management. While profitability metrics are strong, there is potential for enhancing net profit margins and return on equity to maximize shareholder value.

Income Statement

Waystar Holding Corp. has shown a consistent revenue growth trajectory, with a TTM revenue growth rate of 2.82%. The company maintains strong gross and EBIT margins at 67.32% and 20.80% respectively, indicating efficient cost management and operational profitability. However, the net profit margin is relatively low at 8.50%, suggesting room for improvement in net profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.40, indicating prudent leverage management. The equity ratio stands at 67.90%, showcasing a strong equity base. However, the return on equity is modest at 2.77%, suggesting limited returns on shareholder investments.

Cash Flow

Cash flow analysis reveals robust free cash flow growth of 2.14% in the TTM, with a strong operating cash flow to net income ratio of 1.99. The free cash flow to net income ratio is high at 91.45%, indicating effective cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	943.55M	791.01M	704.87M	578.57M
Gross Profit	704.77M	627.82M	541.24M	489.98M	426.80M
EBITDA	380.67M	310.36M	318.55M	272.62M	236.37M
Net Income	111.18M	-19.13M	-51.33M	-51.45M	-47.12M
Balance Sheet
Total Assets	4.75B	4.58B	4.58B	4.69B	4.78B
Cash, Cash Equivalents and Short-Term Investments	421.06M	182.13M	45.43M	64.56M	47.25M
Total Debt	40.73M	1.26B	2.25B	2.26B	2.30B
Total Liabilities	1.52B	1.50B	2.53B	2.59B	2.66B
Stockholders Equity	3.22B	3.08B	2.05B	2.11B	2.12B
Cash Flow
Free Cash Flow	284.52M	142.50M	29.94M	85.20M	91.86M
Operating Cash Flow	307.81M	169.77M	51.46M	102.63M	106.41M
Investing Cash Flow	-23.29M	-27.27M	-61.52M	-17.43M	-444.33M
Financing Cash Flow	16.49M	16.65M	-17.15M	-67.06M	331.50M

Waystar Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAY, the sentiment is Negative. The current price of 23.99 is below the 20-day moving average (MA) of 29.31, below the 50-day MA of 31.88, and below the 200-day MA of 36.24, indicating a bearish trend. The MACD of -1.99 indicates Positive momentum. The RSI at 19.15 is Positive, neither overbought nor oversold. The STOCH value of 5.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAY.

Waystar Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	72 Outperform	$5.15B	21.13	25.96%	―	14.43%	29.86%
PAY	72 Outperform	$3.15B	52.90	11.81%	―	44.34%	45.96%
G	71 Outperform	$6.61B	12.36	22.32%	1.41%	7.40%	-14.45%
SAIC	71 Outperform	$4.42B	12.49	23.75%	1.69%	-0.38%	31.38%
EPAM	68 Neutral	$10.21B	27.08	10.21%	―	14.26%	-15.49%
WAY	68 Neutral	$4.59B	39.25	3.54%	―	14.75%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%