Waterdrop Inc. cash flow to debt ratio of 345.63% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Waterdrop Inc.'s free cash flow has decreased -2.08% from $218.84M last year to $214.29M, signaling decreasing performance

Waterdrop Inc.'s debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.

Waterdrop Inc.'s debt has increased relative to shareholder equity from 0.05 last year to 0.06 today, signaling weakened financials

Waterdrop Inc. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability

Waterdrop Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Waterdrop Inc.'s profit margin has decreased (-5.49%) in the last year from 13.26% to 12.53%, signaling decreasing performance

Waterdrop Inc.'s short-term assets of $3.98G exceed its short-term liabilities of $1.89G

Waterdrop Inc.'s return on assets of 7.19% is higher than the 5.00% threshold, indicating efficient asset utilization

Waterdrop Inc.'s return on equity of 10.94%, is lower than 15.00%, indicating bad performance

Waterdrop Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Waterdrop Inc. had positive net income in 4.00 out of 5 years, indicating stable and consistent earnings

Waterdrop Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Waterdrop Inc. has a free cash flow yield of 53.37%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Waterdrop Inc.'s yearly earnings has increased 50.59% since last year from $367.51M to $553.44M, signaling increasing performance

Waterdrop Inc.'s yearly revenue has increased 39.60% since last year from $2.77G to $3.87G, signaling increasing performance

ROIC 6.73% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.

Waterdrop Inc.'s 3-year revenue CAGR of 11.36% is positive, indicating growing revenue over the past 3 years

Waterdrop Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance

Waterdrop Inc. had positive ROE in 4.00 out of 5 years, indicating consistent and reliable returns on equity

Waterdrop Inc. has insufficient data to evaluate this check.

Waterdrop Inc. has an earnings yield of 1.39K%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Waterdrop Inc. is undervalued relative to its fair value price of 9.92 based on EBITDA multiple model

Waterdrop Inc. has an EV/EBITDA ratio of 3.59x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Waterdrop Inc. is undervalued relative to its fair value price of 118.28 based on Earnings Fair Value model

Waterdrop Inc. has a PEG-ratio under 1 which is considered undervalued

Waterdrop Inc. has a price-to-book ratio of 0.05x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Waterdrop Inc. has a price-to-sales ratio of 0.61x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue