Waterdrop Inc. (WDH) AI Stock Analysis
WDH AI stock analysis summary
AI ResearchWaterdrop Inc. (WDH) provides online insurance brokerage and healthcare crowdfunding services in China. Trailing twelve months revenue stands at $5.08B with an operating margin of 7.7% and trailing P/E of 5.0x. The company holds $1.56B in net cash on its balance sheet as of June 30, 2026, alongside a 5.94% dividend yield.
- Market cap
- $362.9M
- Revenue (TTM)
- $5.08B
- P/E
- 5.0x
- 1Y return
- -40.5% S&P 500 16.8%
- Avg. target
- $1.72 70.7% vs last close
Bull case
- Net cash of $1.56B as of June 30, 2026 exceeds the company's total market cap of $362.9M.
- Quarterly revenue grew 72.8% year-over-year in the latest quarter ended June 30, 2026.
- The stock offers a 5.94% dividend yield supported by a low payout ratio of 10.0%.
Bear case
- Quarterly earnings fell 22.8% year-over-year in the quarter ended June 30, 2026.
- The share price has dropped 40.5% over the past year and trades 26.2% below its 200-day average.
- Trailing twelve months operating margin of 7.7% is below the US-listed Financial Services median of 37.7%.
What Waterdrop does
Waterdrop Inc. is an online insurance brokerage services provider in the People's Republic of China, connecting users with insurance products underwritten by insurance companies. Founded in 2016 and based in Beijing, the company offers short-term health insurance, long-term health insurance, and life insurance solutions. It also operates a medical crowdfunding platform that leverages technology to connect individuals seeking financial help for healthcare costs with donors. Waterdrop uses digital platforms and innovative tools to improve access to insurance and healthcare financing across China.
Growth and profitability
Revenue reached $3.87B in FY2025, up 39.6% compared to $2.77B in FY2024 and $2.63B in FY2023. Gross margin was 51.1% in FY2025, while operating margin expanded to 9.3%. Net income totaled $553.4M in FY2025, producing EPS of $1.18. Over the trailing twelve months, revenue was $5.08B with a profit margin of 10.7% and EPS of $0.20. For the latest quarter ended June 30, 2026, quarterly revenue grew 72.8% year-over-year, while quarterly earnings declined 22.8%.
Balance sheet and cash flow
As of June 30, 2026, Waterdrop reported cash and short-term investments of $2.06B against total debt of $497.8M, resulting in net cash of $1.56B. Shareholders' equity was $5.20B, with a debt-to-equity ratio of 0.10 and a current ratio of 2.19. In FY2025, operating cash flow was $243.9M and free cash flow was $214.3M. The company used its cash to fund $29.6M in capital expenditures, $91.2M in share buybacks, and $130.4M in dividends paid.
Valuation and performance
Waterdrop closed at $1.01 on October 16, 2026, trading at a trailing P/E of 5.0x, below the 12.1x median of its US-listed Financial Services peers. Its price-to-sales multiple of 0.1x and EV/EBITDA of 4.6x also sit lower than the peer medians of 3.2x and 11.7x, respectively. The stock has a market cap of $362.9M and an enterprise value of $265.7M. Over the past year, WDH fell 40.5%, trailing the S&P 500 (SPY) gain of 16.8%.
WDH dividend
Waterdrop pays a forward annual dividend of $0.06 per share, yielding 5.94% with a payout ratio of 10.0%. Dividends are distributed on a semiannual frequency and have been paid for 3 consecutive years. The most recent ex-dividend date was October 9, 2026.
What analysts expect
Wall Street coverage consists of 3 Strong Buy ratings, 1 Buy, and no Hold or Sell ratings. The mean price target is $1.72, which is 70.7% above the last close of $1.01. For the fiscal year ending December 31, 2026, analysts estimate revenue of $5.06B and EPS of $1.13. The company beat EPS estimates in 2 of the last 4 quarters, and the next earnings date is December 2, 2026.
Key risks and what to watch
- Full-year EPS for FY2026 is projected to decline 32.2% to $1.13.
- Shares have traded down to $0.96 over the 52-week range, down from a high of $2.03.
- Institutional ownership remains relatively low at 10.4%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WDH AI stock analysis
This page is an AI-written research summary of Waterdrop Inc. (WDH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WDH income statement, WDH analyst forecast, WDH chart. See the WDH stock overview for the latest quote and news.
WDH AI stock analysis FAQ
What is Waterdrop Inc.'s dividend yield and payment schedule?
Waterdrop pays an annual forward dividend of $0.06 per share, which represents a dividend yield of 5.94%. The dividend is paid semiannually, with a payout ratio of 10.0%.
How does Waterdrop's valuation compare to its financial services peers?
Waterdrop trades at a trailing P/E of 5.0x and an EV/EBITDA of 4.6x. Both multiples are lower than the median of its US-listed Financial Services peers, which sit at 12.1x and 11.7x, respectively.
What is the cash position of Waterdrop?
As of June 30, 2026, Waterdrop had $2.06B in cash and short-term investments and $497.8M in total debt, giving it a net cash balance of $1.56B.
What are analysts forecasting for Waterdrop's earnings?
Analysts expect EPS of $1.13 on revenue of $5.06B for FY2026, followed by EPS of $1.87 on revenue of $6.81B for FY2027. The mean price target is $1.72.