Waterdrop

WDH

Insurance - Brokers · Financial Services

Price

$1.00

+0.00 (+0.00%)

Market Cap

$361.7M

Exchange

New York Stock Exchange

Winston Score

Winston is curious

A decent business — some strong pillars, some weaker.

Data as of Aug 23, 2026 · filings through Mar 31, 2026

How the score breaks down

Quality

Mixed

Growth

Exceptional

Cash Flow

Weak

Stability

Exceptional

Valuation

Good

Dividends

Good

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Share count falling — buybacks

−90.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 394.3M (2021) → 37.1M (2025)

Winston Score History

The full picture

Waterdrop Inc. is a Chinese company that helps people buy health and life insurance online. It runs a digital platform where regular consumers can browse, compare, and purchase insurance policies from various insurance companies. Waterdrop also operates a medical crowdfunding service, where people facing serious illnesses can raise money from the public to help pay for treatment.

The company makes money primarily by earning commissions when customers buy insurance policies through its platform — it does not underwrite the policies itself. Waterdrop operates almost entirely in China, where it has built a large user base through its crowdfunding service, which acts as a funnel to introduce people to insurance products. The main growth driver is China's underpenetrated health insurance market, where demand for affordable coverage is rising, but the key risk is heavy regulatory scrutiny from Chinese authorities over both the insurance brokerage and online fundraising industries.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+63.8% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+800.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

¥226M/ year

→ Flat (+5% vs prior year)

5.8% of revenue

In line with sector average (7%)

Steady R&D investment year-over-year

Insider Activity

2.0%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

¥4.2B cash & investments

Company generates more cash than it spends — no dilution risk from fundraising

Revenue accelerating

Waterdrop grew revenue 64% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

60.8%

Premium pricing power — 60.8% gross margin

Profit after running costs

Operating Margin

6.4%

Modest — 6.4% operating margin

Return on the money invested

ROCE

6.9%

Weak — 6.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales growth

Sales YoY

+57.4%

Fast-growing sales (+57.4% YoY)

Profit growth

EPS YoY

+634.3%

Earnings growing fast (+634.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

How steady the profit is

EPS Consistency

8/8 quarters

Every recent quarter grew earnings vs last year

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Cash Flow

Profit that turns into cash

Cash Conversion

Weak — only 0% of profit becomes cash

Spare cash per sale

FCF Margin

0.0%

Thin free cash flow (0.0%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns

Debt / Equity

0.05

Conservative — low debt load (0.05)

Covers its interest

Interest Cover

100.00x

—

Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

Price vs profit

P/E Ratio (TTM)

0.8x

Attractive valuation — P/E 0.8

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year

P/E vs Forward

-13.0

SLOWING

Earnings expected to fall — forward P/E higher than today

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Dividends

Dividend

Dividend Yield

5.36%

Healthy income — 5.36% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record

Dividend Growth

N/A

Data not available

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