Share count
3.7Bpeak FY2022
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WDH, Waterdrop Inc.
Insurance Brokers financial
Revenue is led by Insurance Brokerage Income (65%) and Technical Service Income (25%), with 2 more lines behind.
The business
What it sells, where the money comes from, the kind of company it is.
Revenue · FY2025
CN¥4.0B
+43.5% YoY · 6% 5-yr CAGR
Vital signs · TTM, with 5-yr average
Revenue CN¥4.0B 5-yr avg CN¥3.1B
Net margin 14.2% 5-yr avg 1.1%
The business in brief
read the 10-K →What this business is and what moves its needle, from its own SEC filings.
- What it is
- An insurance broker, paid a commission to place coverage without bearing the risk itself.
- What moves the needle
- Commissions on the premiums it places, and organic growth. What decides it: insurance prices in the market, since it earns a slice of them; new business won and kept; and a capital-light fee stream that carries none of the underwriting risk of the insurers it sells for. On its own account, the filing leans hardest on debt terms & refinancing, set against the numbers in what the filing emphasizes, below.
- Is it a good business?
- Operating margin has been modest for a fee business (median −0%). It earns this on little capital, so return on equity has run near 7%, the leverage of a model that needs almost no plant to grow. A high return that does not fade can mark a moat, but whether the commissions keep renewing as rates turn is what the 10-K settles, not the multiple.
Every line is arithmetic on the company's filings, shown in full in the sections below.
Where the money comes from
read the 20-F →Insurance Brokerage Income is 65% of revenue, with Technical Service Income the other meaningful line at 25%.
Revenue by product line, FY2025
- Insurance Brokerage Income65%CN¥2.6B
- Technical Service Income25%CN¥1.0B
- Crowdfunding Service Fees7%CN¥262M
- Digital Clinical Trial Solution Income3%CN¥118M
- Other Revenues1%CN¥21M
From the segment footnote of the company's own 20-F. Shares are of total revenue; the profit bar shows each segment's share of segment operating profit, before unallocated corporate costs.
The record
Ten years of arithmetic, read across the cycle.
The record, 2019–2025
realized figures from each filing · older years to the left| 2019’19 | 2020’20 | 2021’21 | 2022’22 | 2023’23 | 2024’24 | 2025’25 | TTMTTMDec 2025 | |
|---|---|---|---|---|---|---|---|---|
| Income statement | ||||||||
| CN¥1.5B | CN¥3.0B | CN¥3.2B | CN¥2.8B | CN¥2.6B | CN¥2.8B | CN¥4.0B | CN¥4.0B | RevenueRevenue |
| −12.9% | −16.4% | −58.1% | 17.1% | −0.3% | 6.4% | 9.3% | 9.3% | Operating marginOp. mgn |
| 21.3% | −21.9% | −49.1% | 21.7% | 6.2% | 12.7% | 14.2% | 14.2% | Net marginNet mgn |
| CN¥322M | (CN¥664M) | (CN¥1.6B) | CN¥608M | CN¥164M | CN¥351M | CN¥565M | CN¥565M | Net incomeNet inc. |
| 31% | — | — | 4% | 0% | 3% | -4% | -4% | Effective tax rateTax rate |
| Cash flow & returns | ||||||||
| (CN¥540M) | (CN¥790M) | (CN¥1.1B) | CN¥754M | CN¥393M | CN¥426M | CN¥230M | CN¥230M | Owner earningsOwner earn. |
| — | — | -40% | 13% | 4% | 7% | 11% | 11% | Return on equityROE |
| — | — | — | — | — | 4% | 8% | 8% | Retained to equityRetained/eq |
| Balance sheet | ||||||||
| — | CN¥4.7B | CN¥5.3B | CN¥5.9B | CN¥6.1B | CN¥6.5B | CN¥7.1B | CN¥7.1B | Total assetsAssets |
| CN¥964M | CN¥2.3B | CN¥2.8B | CN¥3.7B | CN¥3.4B | CN¥2.6B | CN¥1.0B | CN¥1.0B | Cash & investmentsCash+inv |
| (CN¥706M) | (CN¥1.7B) | CN¥4.0B | CN¥4.8B | CN¥4.6B | CN¥4.8B | CN¥5.2B | CN¥5.2B | Shareholders’ equityEquity |
| Per share | ||||||||
| 1.20B | 1.17B | 2.99B | 4.02B | 3.88B | 3.72B | 3.71B | 3.61B | Shares out (diluted)Shares |
| CN¥1.26 | CN¥2.58 | CN¥1.07 | CN¥0.70 | CN¥0.68 | CN¥0.75 | CN¥1.07 | CN¥1.10 | Revenue / shareRev/sh |
| CN¥0.27 | CN¥-0.57 | CN¥-0.53 | CN¥0.15 | CN¥0.04 | CN¥0.09 | CN¥0.15 | CN¥0.16 | EPS (diluted)EPS |
| CN¥-0.45 | CN¥-0.67 | CN¥-0.37 | CN¥0.19 | CN¥0.10 | CN¥0.11 | CN¥0.06 | CN¥0.06 | Owner earnings / shareOE/sh |
| — | — | — | — | — | CN¥0.04 | CN¥0.04 | CN¥0.04 | Dividends / shareDiv/sh |
| CN¥-0.59 | CN¥-1.41 | CN¥1.33 | CN¥1.18 | CN¥1.18 | CN¥1.29 | CN¥1.39 | CN¥1.43 | Book value / shareBVPS |
The diluted share count moved ×2.55 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.
Per-share growththe realized rate an owner's share compounded
| 6-yr | 5-yr | |
|---|---|---|
| Revenue / share | −2.6%/yr | −16.1%/yr |
| EPS | −9.0%/yr | — |
| Dividends / share | −17.7%/yr (1-yr) | −17.7%/yr (1-yr) |
| Capital spending / share | −5.2%/yr | −18.9%/yr |
The record, charted
FY2019–2025Each measure over its full record; the current point and the worst year marked.
Revenue
CN¥4.0Blow FY2019
Quality & stewardship
Returns, the balance sheet, capital allocation, and pay.
Owner’s Scorecard
FY2025 20-F · source on SEC EDGAR →
Is it a good business?
- Operating margin 9.3%Modest fee marginOperating income CN¥371M ÷ revenue CN¥4.0BIndustry peers: median 12%
What this means
The heart of a insurance broker: how much of each fee dollar survives the cost of running the business. Commissions are a slice of the premiums it places, earned without taking the underwriting risk itself, so it is a capital-light fee stream that rises with new business, retention and the price of insurance. A high margin held for years, through a market it does not control, is the operational mark of a real franchise.
- Net margin 14.2%SolidNet income CN¥565M ÷ revenue CN¥4.0B
What this means
What reaches the owner after tax and interest. For a capital-light fee business this should be a wide share of revenue; when it is thin despite a high operating margin, debt taken on for acquisitions is usually the reason, so read it next to the balance sheet.
- Return on equity 11%SolidNet income CN¥565M ÷ equity CN¥5.2BIndustry peers: median 11%
What this means
Because the business ties up little capital, a healthy fee stream throws off a high return on the equity behind it. Read it with the buyback record: returning capital lifts this ratio honestly, but heavy debt taken to do so can flatter it.
Does AI threaten the moat?
Low contestabilityThe moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.
In its own filing Raised, but not as a competitor
The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.
AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.
Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.
All figures as filed; the source filing is linked above.
Current Position
as of fiscal year-end, Dec 31, 2025Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.
Current assetsCN¥4.0B
- Cash & short-term investmentsCN¥1.0B
- ReceivablesCN¥1.3B
- Other current assetsCN¥1.7B
Current liabilitiesCN¥1.9B
- Other current liabilitiesCN¥1.9B
Current ratio2.10×all current assets ÷ what's due · Graham looked for 2×
Quick ratio2.10×stricter: inventory excluded
Cash ratio0.54×strictest: cash alone against what's due
Working capitalCN¥2.1Bthe cushion left after near-term bills
Deeper floors
Tangible book valueCN¥4.9Bequity stripped of goodwill & intangibles
Net current asset valueCN¥2.0BGraham's net-net: current assets less all liabilities
Deferred revenueCN¥46Mcustomer cash collected before delivery; operating float
From the company's latest filing.
Peers, Insurance Brokers
The same industry, side by side on fee margins. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.
| Company | Revenue | Op. margin | Net margin | ROE |
|---|---|---|---|---|
| AJGArthur J. Gallagher & Co. | $13.9B | 11.8% | 10.2% | 11% |
| EQHEquitable Holdings Inc. | $11.7B | 11.4% | 10.5% | 13% |
| WTWWillis Towers Watson PLC | $9.5B | 11.4% | 11.5% | 10% |
| BROBrown & Brown Inc. | $5.9B | 26.7% | 18.6% | 13% |
| ERIEErie Indemnity Company | $4.1B | 15.2% | 12.4% | 25% |
| WDHWaterdrop Inc. | CN¥4.0B | -0.3% | 12.7% | 7% |
| RYANRyan Specialty Holdings Inc. | $3.0B | 16.5% | 3.9% | 11% |
| BWINThe Baldwin Insurance Group Inc. | $1.5B | -3.2% | -4.3% | -6% |
| Group median | — | 11.6% | 11.0% | 11% |
The price
What a price has to assume.
What the price implies
reverse-DCFEnter the US price, in dollars: the NYSE/Nasdaq quote you hold. Per the filing's own cover, “American depositary shares (each ADS represents ten of our Class”; Waterdrop Inc. reports in CNY, so every figure in this tool is stated per ADS and translated at CNY 1 = $0.147 (2026-07-17, reference rate) so your dollar quote reconciles exactly. The record tables elsewhere on this page remain as filed, in CNY.
Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Waterdrop Inc. has delivered.
$
Through the cycle, Waterdrop Inc. earns about $34M on its 5.8% median owner-earnings margin. This year’s 5.8% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.
Base
—
The assumptions
9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.
Enter a price above to run it.
A dated snapshot of the price you typed, the assumptions you set, and what the page showed for them. A snapshot is never edited after it is saved. Your notebook is yours alone — the commitment states what is stored and what we will never do.
Implied by the price—
Owner-earnings growth · since FY2022−34%/yr
Owner-earnings growth · since FY2022−33%/yr
Owner-earnings yield—
What a growth belief costs, in multiples
The growth each return requires, at your price
P/E (3-yr earnings ’23–’25)—
P/B—
Graham’s price gate—
Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.
Against a high-grade bond: Graham’s yardstick bond yield%
Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.
Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.
Owner-earnings yield—
High-grade bond yield—
Margin over the bond—
Free cash flow $32M on 361M shares outstanding, the balance-sheet count at 2025-12-31; net cash $150M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($4M) runs well above depreciation ($2M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $34M, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.
Cite: Owner Scorecard, "Waterdrop Inc. (WDH), the owner's record," https://ownerscorecard.com/c/WDH, data as of 2026-07-09.
Manual order: ← WBX its page in the Manual WDS →
Industry order: ← TWFG the Insurance Brokers chapter WTW →