Waystar Holding Corp. (NASDAQ: WAY)

Sector: Healthcare Industry: Health Information Services CIK: 0001990354
Market Cap 4.33 Bn
P/B 1.12
P/E 38.59
P/S 3.93
ROIC (Qtr) 2.80
Div Yield % 0.00
Rev 1y % (Qtr) 24.35
Total Debt (Qtr) 1.49 Bn
Debt/Equity (Qtr) 0.38
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About

Investment thesis

Bull case

  • Healthy cash reserves of 76.81M provide 3.80x coverage of short-term debt 20.22M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 283.19M exceeds capital expenditure of 26.48M by 10.69x, indicating strong organic growth funding capability.
  • Tangible assets of 475.44M provide exceptional 6.48x coverage of deferred revenue 73.35M, showing strong service capability backing.
  • Operating cash flow of 309.67M provides strong 4.22x coverage of deferred revenue 73.35M, indicating service delivery capability.
  • Operating cash flow of 309.67M provides solid 1.42x coverage of current liabilities 218.06M, showing strong operational health.

Bear case

  • Operating cash flow of 309.67M barely covers its investment activities of (680.90M), with a coverage ratio of -0.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (680.90M) provide weak support for R&D spending of 54.62M, which is -12.47x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 76.81M provide limited coverage of acquisition spending of (629.53M), which is -0.12x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 249.31M show weak coverage of depreciation charges of 140.55M, with a 1.77 ratio indicating high capital intensity and potential reinvestment needs.
  • High depreciation of 140.55M relative to operating cash flow of 309.67M, which is 0.45x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2025)

Segments Breakdown of Revenue (2025)

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 GEHC GE HealthCare Technologies Inc. 37.32 Bn 16.66 1.87 10.00 Bn
2 TEM Tempus AI, Inc. 35.72 Bn -175.20 32.32 1.34 Bn
3 VEEV Veeva Systems Inc 28.87 Bn 33.55 9.37 0.09 Bn
4 BTSG BrightSpring Health Services, Inc. 7.67 Bn 59.17 0.62 2.70 Bn
5 HQY Healthequity, Inc. 6.45 Bn 33.65 5.00 1.03 Bn
6 DOCS Doximity, Inc. 4.63 Bn 19.35 7.26 0.01 Bn
7 WAY Waystar Holding Corp. 4.33 Bn 38.59 3.93 1.49 Bn
8 PRVA Privia Health Group, Inc. 2.67 Bn 147.20 1.31 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.89 1.94
EV to Cash from Ops. EV/CFO 16.58 -6.03
EV to Debt EV to Debt 3.44 145.43
EV to EBIT EV/EBIT 20.60 -101.02
EV to EBITDA EV/EBITDA 13.17 2.47
EV to Free Cash Flow [EV/FCF] EV/FCF 18.13 3.97
EV to Market Cap EV to Market Cap 1.19 -28.84
EV to Revenue EV/Rev 4.67 -0.03
Price to Book Value [P/B] P/B 1.12 7.66
Price to Earnings [P/E] P/E 38.59 98.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.72
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.01
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.56
Interest Coverage Int. cover (Qtr) 3.22 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2.89 -23.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -62.46 167.20
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.33
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 55.01 -19.20
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 25.61 40.04
EBIT Growth (1y) % EBIT 1y % (Qtr) 101.50 -39.33
EBT Growth (1y) % EBT 1y % (Qtr) 861.87 6.33
EPS Growth (1y) % EPS 1y % (Qtr) 584.62 8.83
FCF Growth (1y) % FCF 1y % (Qtr) 98.73 -6.20
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 19.64 4.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.35 1.81
Current Ratio Curr Ratio (Qtr) 1.41 3.20
Debt to Equity Ratio Debt/Equity (Qtr) 0.38 -0.43
Interest Cover Ratio Int Coverage (Qtr) 3.22 -584.72
Times Interest Earned Times Interest Earned (Qtr) 3.22 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 35.50 -435.68
EBIT Margin % EBIT Margin % (Qtr) 22.68 -464.60
EBT Margin % EBT Margin % (Qtr) 15.63 -461.63
Gross Margin % Gross Margin % (Qtr) 68.30 44.04
Net Profit Margin % Net Margin % (Qtr) 10.20 -467.91