Waterdrop Inc. American Depositary Shares (each representing the right to receive 10 Class A Ordinary Shares) (WDH)

FairStock Score: 94/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with what is knowable. Waterdrop is an online insurance broker in China, not an underwriter, so its main assets are distribution, data and customer trust rather than a loan book. In the latest reported quarter, fiscal Q2 2026, revenue was $1.4B and net income was $125.8M, an 8.68% margin. That is real profit, but the record is short. The FairStock calculations at the 2026-10-13 close show a P/E of 5.00, P/B of 0.50, ROE of 11.01% and ROCE of 3.29%. The balance sheet looks conservative on a D/E of 0.06, and a 5.88% dividend yield is unusual. The supplied data point to rapid revenue and profit growth, but the periods are not labeled and only 0 years of filed results exist—three are needed for the Lynch category, which is none—so I treat that growth as unproven. The FairStock Piotroski F-Score is 6/9, fair but not exceptional, and the FairStock Score is 94/100. The market is pricing this at half of book and five times earnings, which can be a bargain or a warning about Chinese ADR governance, regulatory change and commission pressure. CET1, net interest margin and combined ratio are not in the data, so I cannot judge capital adequacy or underwriting risk as I would for a bank or insurer. At $1.05, near the low end of the 52-week range, the price looks cheap, but I would want a larger margin of safety until the filings build a multi-year record.

In plain English: Waterdrop is a Chinese online insurance broker that helps people find health and life insurance and also runs medical crowdfunding. It is profitable, carries very little debt, and reported a positive latest quarter, but it has a short public record and faces China-related risks. At $1.05, the shares look cheap compared with the company’s profits and assets, though cheap shares can stay cheap if those risks grow.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer