# Waterdrop Inc. American (WDH) fundamentals

Data as of 2026-09-08. NYSE, United States. Sector: Financial Services / Insurance. Price $1.02, market value $366 million.

## Valuation
- **P/E (trailing): 4.6×** (5-yr avg 114.1×, 3-yr avg 101.0×). Waterdrop Inc. American trades at 4.6× trailing earnings, well below its own five-year average of 114.1×: cheap by its own standards. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 6.2×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.06**. A PEG of 0.06 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.1×**. Each dollar of revenue is priced at 0.1×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.5×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 0.8×**. Enterprise value is 0.8× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.4%** (5-yr avg -0.2%). Free cash flow equals 8.4% of the market value, above its five-year average of -0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 21.6%**. The inverse of the P/E: 21.6% of the price is earned each year.

## Profitability
- **Gross margin: 47.6%**. Waterdrop Inc. American keeps 47.6% of revenue after the direct cost of what it sells.
- **Operating margin: 8.4%**. 8.4% of revenue is left after running the business.
- **Net margin: 14.2%**. 14.2% of each dollar of sales reaches the bottom line.
- **Return on equity: 11.0%**. 11.0% on shareholders' equity is solid.
- **Return on invested capital: 55.6%**. Return on all capital, debt included, is 55.6%: comfortably above what that capital costs.
- **Return on assets: 55.1%**. Each dollar of assets produces 55.1% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 49.8%** (3-yr 11.9%/yr). Revenue grew 49.8% over the last year.
- **EPS growth (1 yr): 100.0%** (3-yr 0.0%/yr). Earnings per share rose 100.0%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -34.5%/yr**. Free cash flow has compounded at -34.5% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.
- **Cash and short-term investments: $69 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 5.88%** ($0.06 per share, trailing). Waterdrop Inc. American yields 5.88%, an income-level yield.
- **Payout ratio: 23%** (61% of free cash flow). 23% of earnings goes out as dividends, leaving room to keep raising it.

## Price and momentum
- **Total return (1 yr): -42.9%** (YTD -45.3%, 3-mo -27.1%). The shares are down 42.9% over twelve months including dividends.
- **From 52-week high: -50.7%** (6.3% above the low). Trading 51% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 47**. An RSI of 47 is neutral.
- **Beta (1 yr): 0.88** (volatility 38%). Beta of 0.88 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=WDH · Page: https://foliofundamentals.com/stocks/wdh

Not investment advice.