Waystar Holding Corp. Common Stock (WAY)

FairStock Score: 41/100 — MIXED

Key Financials

Strengths

• Generates $310 million in annual free cash flow (6.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.38, providing financial flexibility
• Revenue growth of 24.4% demonstrates strong top-line momentum

Concerns

• Elevated P/E of 40.7x prices in substantial future growth that may not materialize
• Altman Z-Score of 1.5 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Waystar Holding Corp. Common Stock is a small-cap healthcare company valued at $4.6 billion. The business generates $1.1 billion in annual revenue with a 1.8% net margin and $310 million in free cash flow. From a quality standpoint, Waystar shows distressed Altman Z-Score of 1.5 warrants caution and modest 3% ROE. On valuation, the stock is commanding a steep 40.7x multiple, with trades above its Graham Number with a negative 45% margin. Growth dynamics show revenue growing at 24.4% and profit growth of 4.8%. Our composite FairStock Score of 41/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Waystar's 24% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $310 million in annual free cash flow (6.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 41x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer