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Waterdrop, Inc. ADR Class A (WDH)
:WDH
Top Page
Waterdrop
(NYSE:WDH)
Rating:68Neutral
Price Target:―
Waterdrop (WDH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$509.94M
Dividend Yield1.13%
Average Volume (3M)155.72K
Price to Earnings (P/E)9.7
Beta (1Y)0.70
Revenue Growth3.76%
EPS Growth119.46%
CountryUS
Employees3,057
SectorFinancial
Sector Strength77
IndustryInsurance - Diversified
Share Statistics
EPS (TTM)<0.01
Shares Outstanding281,472,020
10 Day Avg. Volume181,292
30 Day Avg. Volume155,724
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)1.88
Price to Sales (P/S)0.00
P/FCF Ratio11.91
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Waterdrop Business Overview & Revenue Model
Company DescriptionWaterdrop Inc. (WDH) is a leading technology platform in China dedicated to insurance and healthcare services. The company operates through three main segments: insurance brokerage, medical crowdfunding, and mutual aid, aiming to provide affordable protection and accessible healthcare services to the public. Waterdrop leverages its innovative platform to connect users with a variety of insurance products and services, effectively bridging the gap between insurance companies and consumers.
How the Company Makes MoneyWaterdrop makes money primarily through its insurance brokerage services, where it earns commission fees by facilitating the sale of insurance products from various insurers to consumers. The company’s platform offers a wide range of insurance products, including health, life, and accident insurance, allowing users to compare and purchase policies that best suit their needs. Waterdrop also generates revenue through its medical crowdfunding platform, which charges service fees for successfully funded projects. Additionally, its mutual aid segment, although not a direct revenue stream, attracts users who may later convert to insurance products, thereby increasing overall customer engagement and potential sales. Strategic partnerships with insurance providers and a strong digital presence significantly contribute to Waterdrop's earnings by enhancing its product offerings and expanding its user base.
Waterdrop Earnings Call Summary
Earnings Call Date:Jun 05, 2025
(Q1-2025)
| % Change Since: -8.00%|
Next Earnings Date:Sep 03, 2025
Earnings Call Sentiment Positive
Waterdrop demonstrated strong revenue and profit growth, particularly in its insurance business and AI innovations. However, challenges remain in the life insurance sector and potential profit impacts due to increased investments.Q1-2025 Updates
Positive Updates
Revenue Growth
Waterdrop's revenue reached over RMB 750 million, marking a 7% year-over-year increase. The company anticipates annual revenue growth of over 20% year-over-year.
Profitability
Net profit attributable to ordinary shareholders was RMB 110 million, a significant 34.2% year-over-year growth. This marks the 13th consecutive quarter of GAAP profitability.
Insurance Business Growth
First year premiums (FYP) for the insurance business were approximately RMB 2.09 billion, with a year-over-year growth of 19.3% and a quarter-over-quarter growth of 10.2%.
Strong Operating Profit Margin
The insurance business generated an operating profit of approximately RMB 150 million, with an operating profit margin of 23%.
AI and Innovation
Waterdrop has filed 51 patents related to large language model technology. The AI service quality Copilot improved management efficiency by 83%.
Negative Updates
Pressure on Life Insurance Products
Long-term insurance FYP reached RMB 590 million, representing a 1.6% year-over-year decline, primarily due to pressure on life insurance products.
Increased Investment Impact
The company intends to increase its investment in business growth, which may have a negative impact on the annual profit.
Company Guidance
In the first quarter of 2025, Waterdrop demonstrated significant financial growth and strategic advancements. The company reported a revenue of over RMB 750 million, reflecting a 7% year-over-year increase, and a net profit attributable to ordinary shareholders of approximately RMB 110 million, marking a notable 34.2% growth from the previous year. This quarter marked Waterdrop's 13th consecutive quarter of GAAP profitability. The insurance business segment experienced a robust performance with First Year Premiums (FYP) rising by 19.3% year-over-year and 10.2% quarter-over-quarter, contributing to insurance-related revenue of about RMB 660 million, an 8.4% year-over-year increase. The company's operating profit margin for the insurance business stood at 23%, with the short-term insurance generating RMB 1.5 billion in FYP, reflecting a 30.1% year-over-year growth. Waterdrop's investment in AI technology enhanced their operational efficiency, with AI driving significant improvements across customer service and insurance offerings, including an innovative maternity insurance product and collaboration on medical insurance products for patients with chronic diseases. The company also maintained its commitment to social responsibility, with its charity platform partnering with 117 public charitable organizations and launching over 15.5 charitable projects. Despite planning increased investments to drive business growth in the latter half of the year, which may impact annual profit, Waterdrop remains optimistic about achieving over 20% annual revenue growth year-over-year.Waterdrop Financial Statement Overview
Summary
Waterdrop exhibited strong financial performance with significant improvements in income statement metrics and a robust balance sheet. The income statement score of 73 reflects enhanced profitability and operational performance. The balance sheet score of 79 highlights low leverage and financial stability. However, a cash flow score of 55 points to challenges in generating cash from operations, emphasizing the need for better cash management.Income Statement
Waterdrop has demonstrated a strong recovery in its income statement metrics. The company achieved a notable increase in its gross profit margin, from 39.7% in 2023 to 52.5% in 2024. The net profit margin also improved significantly, reaching 13.3% in 2024 compared to 6.4% in 2023. Revenue growth was steady at 5.4%. The EBIT margin turned positive, indicating improved operational performance. However, the EBITDA margin showed a modest increase, suggesting room for further enhancement in operational efficiency.73
Positive
Balance Sheet
The balance sheet reflects a robust financial position with a low debt-to-equity ratio of 0.05, highlighting low leverage and financial stability. The return on equity improved to 7.7% in 2024, up from 3.6% in 2023, demonstrating better profitability. The equity ratio remained strong at 74.3%, indicating a solid equity base relative to total assets. The company's conservative debt management and strong equity position contribute to its financial resilience.79
Positive
Cash Flow
Waterdrop's cash flow performance is mixed. The operating cash flow to net income ratio is unavailable for 2024 due to zero operating cash flow. The free cash flow to net income ratio could not be assessed for the same reason. The absence of free cash flow in 2024 indicates potential challenges in generating cash from operations, despite improvements in net income. This highlights a need for better cash flow management.55
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.77B | 2.63B | 2.80B | 3.21B | 3.03B | Gross Profit |
| 1.46B | 1.04B | 1.78B | 2.15B | 2.29B | EBIT |
| 178.16M | -6.74M | 239.50M | -1.86B | -496.25M | EBITDA |
| 191.71M | 6.81M | 500.96M | -1.84B | -483.18M | Net Income Common Stockholders |
| 367.51M | 167.22M | 607.72M | -1.57B | -663.85M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.60B | 3.39B | 3.70B | 2.79B | 2.26B | Total Assets |
| 6.45B | 6.15B | 5.92B | 5.25B | 4.71B | Total Debt |
| 243.92M | 197.76M | 14.05M | 58.59M | 64.26M | Net Debt |
| -742.41M | -199.15M | -1.56B | -759.13M | -997.70M | Total Liabilities |
| 1.58B | 1.47B | 1.16B | 1.28B | 1.52B | Stockholders Equity |
| 4.80B | 4.59B | 4.77B | 3.97B | 3.18B |
| Cash Flow | Free Cash Flow | |||
| 218.84M | 392.99M | 753.82M | -1.13B | -803.82M | Operating Cash Flow |
| 437.25M | 406.52M | 765.71M | -1.10B | -777.11M | Investing Cash Flow |
| 291.64M | -1.17B | -139.82M | -846.90M | -1.22B | Financing Cash Flow |
| 0.00 | -377.24M | -57.46M | 2.12B | 2.05B |
Waterdrop Technical Analysis
Neutral
1.38
Price Trends
1.35
Positive
1.32
Positive
1.22
Positive
Market Momentum
0.02
Positive
46.62
Neutral
24.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDH, the sentiment is Neutral. The current price of 1.38 is below the 20-day moving average (MA) of 1.45, above the 50-day MA of 1.35, and above the 200-day MA of 1.22, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.62 is Neutral, neither overbought nor oversold. The STOCH value of 24.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WDH.
Waterdrop Risk Analysis
Waterdrop disclosed 104 risk factors in its most recent earnings report. Waterdrop reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
We have made investments in generative AI and may face uncertainties with respect to its commercialization and the evolving laws and regulations applicable to us. Q4, 2023
2.
We may be materially adversely affected by the changes and evolvement in the regulation of medical crowdfunding business. Q4, 2023
3.
The legal system in mainland China is evolving, which leads to uncertainties that could adversely affect us. Q4, 2023
Waterdrop Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $1.02B | 8.33 | 20.50% | 8.05% | 13.29% | 17.14% | |
77 Outperform | $5.00B | 10.73 | 8.56% | ― | 10.70% | -39.16% | |
69 Neutral | $1.85B | 17.57 | -0.42% | 2.40% | 23.28% | -103.35% | |
68 Neutral | $509.94M | 9.71 | 8.26% | 1.13% | 3.76% | 119.46% | |
65 Neutral | $12.93B | 9.81 | 7.84% | 78.03% | 12.20% | -7.74% | |
63 Neutral | $4.04B | 90.24 | 60.58% | ― | 21.60% | 90.80% | |
46 Neutral | $21.95M | 11.46 | -41.35% | ― | 27.74% | -33.99% |
* Financial Sector Average
Performance Comparison
WDH
Waterdrop
1.38
0.23
20.00%
ESGR
Enstar Group
335.84
37.98
12.75%
FGF
Fundamental Global
17.96
-9.24
-33.97%
IGIC
International General Insurance Holdings
23.68
10.12
74.63%
GSHD
GooseHead Insurance
108.24
53.19
96.62%
FIHL
Fidelis Insurance Holdings Ltd.
16.81
1.62
10.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.