Waystar Holding Corp. (NASDAQ: WAY)

Sector: Healthcare Industry: Health Information Services CIK: 0001990354
Market Cap 5.00 Bn
P/B 1.55
P/E 44.97
P/S 4.81
ROIC (Qtr) 3.92
Div Yield % 0.00
Rev 1y % (Qtr) 11.89
Total Debt (Qtr) 1.25 Bn
Debt/Equity (Qtr) 0.39

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 445.36M provide 24.30x coverage of short-term debt 18.33M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 284.52M exceeds capital expenditure of 23.29M by 12.21x, indicating strong organic growth funding capability.
  • Tangible assets of 771.39M provide exceptional 53.56x coverage of deferred revenue 14.40M, showing strong service capability backing.
  • Operating cash flow of 307.81M provides strong 21.37x coverage of deferred revenue 14.40M, indicating service delivery capability.
  • Operating cash flow of 307.81M provides solid 1.95x coverage of current liabilities 157.65M, showing strong operational health.

Bear case

  • Operating cash flow of 307.81M barely covers its investment activities of (23.29M), with a coverage ratio of -13.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (23.29M) provide weak support for R&D spending of 47.58M, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating earnings of 243.43M show weak coverage of depreciation charges of 138.10M, with a 1.76 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 284.52M represents just -22.12x of debt issuance (12.86M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High depreciation of 138.10M relative to operating cash flow of 307.81M, which is 0.45x suggests significant maintenance capital requirements affecting free cash flow.

Product and Service Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.25 2.77
EV to Cash from Ops. EV/CFO 19.31 -10.86
EV to Debt EV to Debt 4.74 161.93
EV to EBIT EV/EBIT 24.42 -106.48
EV to EBITDA EV/EBITDA 15.58 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 20.89 7.46
EV to Market Cap EV to Market Cap 1.19 -14.93
EV to Revenue EV/Rev 5.72 1.76
Price to Book Value [P/B] P/B 1.55 10.57
Price to Earnings [P/E] P/E 44.97 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.00
Dividend per Basic Share Div per Share (Qtr) 0.00 0.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.57
Interest Coverage Int. cover (Qtr) 3.26 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 13.20 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 208.53 172.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 99.33 -17.73
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.51 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) 124.84 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) 338.33 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) 258.14 2.60
FCF Growth (1y) % FCF 1y % (Qtr) 217.47 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 16.92 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.22 0.66
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 2.82 1.87
Current Ratio Curr Ratio (Qtr) 3.89 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 -0.43
Interest Cover Ratio Int Coverage (Qtr) 3.26 -584.72
Times Interest Earned Times Interest Earned (Qtr) 3.26 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 36.70 -435.80
EBIT Margin % EBIT Margin % (Qtr) 23.41 -464.70
EBT Margin % EBT Margin % (Qtr) 16.22 -461.74
Gross Margin % Gross Margin % (Qtr) 67.80 44.03
Net Profit Margin % Net Margin % (Qtr) 10.70 -468.01