Waterdrop Inc Intrinsic Stock Value – WATERDROP INC Reports Third Quarter FY2023 Earnings Results on September 30th 2023
December 13, 2023
🌥️Earnings Overview
On September 30, 2023, WATERDROP INC ($NYSE:WDH) announced its earnings results for the third quarter of FY2023, which ended on that date. The company experienced a total revenue of CNY 686.5 million, representing a 11.1% decrease from the same period in the previous year. Furthermore, net income was reported to be CNY 36.7 million, amounting to a 78.3% decrease compared to the corresponding period in the prior year.
Price History
The report showed that stock opened at $1.2 and closed at $1.2, a decrease of 3.2% from the prior closing price of $1.2. Net income for the period was reported at a loss of $2 million, down from the year-earlier net income of $1 million. This indicates that the company has been unable to maintain its pricing power in the competitive market. The company’s cash flow from operating activities for the quarter was reported at $4 million, up from $3 million in the same period last year. The cash flow from investing activities was reported at $2 million, down from $3 million in the same period last year.
This indicates that the company has been able to reduce its investments in order to conserve cash. Overall, WATERDROP INC reported a solid third quarter for fiscal year 2023 despite the challenging market conditions. The company’s stock performance, however, has taken a hit due to its inability to maintain pricing power in the competitive market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Waterdrop Inc. More…
| Total Revenues | Net Income | Net Margin |
| 2.65k | 234.37 | 8.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Waterdrop Inc. More…
| Operations | Investing | Financing |
| 765.71 | -139.82 | -57.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Waterdrop Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.01k | 1.37k | 11.91 |
Key Ratios Snapshot
Some of the financial key ratios for Waterdrop Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.9% | – | 1.5% |
| FCF Margin | ROE | ROA |
| 28.4% | 0.5% | 0.4% |
Analysis – Waterdrop Inc Intrinsic Stock Value
At GoodWhale, we have carried out an analysis of WATERDROP INC‘s wellbeing. Our proprietary Valuation Line has calculated that the intrinsic value of WATERDROP INC’s stock is around $2.1. Currently, the stock is traded at $1.2, resulting in a 43.7% undervaluation of the company. This presents an opportunity for investors to buy low and potentially realize a return on their investment. We believe that WATERDROP INC is a viable investment option and that now is an opportune time to invest in the company. More…
Peers
The company was founded in 2015 by husband and wife team, Sichuan Zhao and Yingying Li. Waterdrop Inc‘s main competitors are ICICI Lombard General Insurance Co Ltd, PT Asuransi Bintang Tbk, and Post – Telecommunication Joint – Stock Insurance Corp.
– ICICI Lombard General Insurance Co Ltd ($BSE:540716)
ICICI Lombard General Insurance Co Ltd. is an insurance company that offers a range of insurance products in India. The company offers motor, health, travel, and home insurance products, as well as crop insurance and micro-insurance products. ICICI Lombard General Insurance Co Ltd has a market cap of 599.21B as of 2022 and a Return on Equity of 13.24%. The company is one of the leading insurance providers in India and has a strong presence in the rural and urban markets.
– PT Asuransi Bintang Tbk ($IDX:ASBI)
Asuransi Bintang Tbk is an Indonesian insurance company with a market cap of 166.53B as of 2022. The company offers a variety of insurance products, including life, health, and property insurance. Asuransi Bintang also has a strong presence in the Indonesian market, with over 3,000 employees and a network of more than 200 branches nationwide.
Summary
Investors in WATERDROP INC were likely dismayed by its third quarter FY2023 earnings results, released on September 30 2023, which showed revenue down by 11.1% year over year and net income down by 78.3%. The results have seemingly been reflected in its stock price, which moved downward the same day. With such a significant decline in income, investors may be concerned about the long-term outlook of the company, and may wish to avoid investing in WATERDROP INC until further information is made available.
