WDH
Financial ServicesWaterdrop Inc. · Insurance - Diversified · $520M
What is Waterdrop Inc.?
Waterdrop Inc. is a Beijing-based insurtech company connecting Chinese consumers with health and life insurance products through an online brokerage platform. It also operates a medical crowdfunding service that helps users raise funds for healthcare expenses.
Waterdrop operates as an online insurance brokerage, matching individual users with short-term and long-term health and life insurance products underwritten by licensed insurers in China. The company earns revenue primarily through brokerage commissions on policies sold via its digital platform. Alongside insurance distribution, Waterdrop runs a medical crowdfunding platform that connects patients facing high medical costs with donors, broadening its reach within China's healthcare-finance ecosystem.
Waterdrop was founded in 2016 and is headquartered in Beijing, China.
- Short-term health insurance brokerage
- Long-term health and life insurance distribution
- Medical crowdfunding platform for healthcare expenses
- Digital user-to-insurer matching technology
Is WDH a Good Stock to Buy?
UQS Score rates WDH as Good overall, reflecting a mixed but notable profile among small-cap financial services names.
The Growth pillar stands out as a relative bright spot, suggesting Waterdrop is expanding its business at a pace that compares favorably within its peer group. The Valuation pillar is rated Attractive, meaning the stock does not appear expensive relative to its fundamentals — a meaningful consideration for value-conscious investors evaluating Chinese insurtech.
Both the Quality and Moat pillars are rated Weak, pointing to thinner competitive defenses and below-average business quality metrics compared to sector peers. The Risk pillar sits at Neutral, indicating neither exceptional stability nor acute distress.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does WDH pay dividends?
Yes — Waterdrop Inc. pays a dividend.
Waterdrop pays a regular dividend, which is relatively uncommon among early-stage insurtech platforms. This suggests management is choosing to return a portion of capital to shareholders rather than reinvesting everything into growth. Investors seeking income alongside exposure to China's digital insurance market may find this noteworthy, though dividend sustainability should be evaluated in the context of the company's overall financial profile.
When does WDH report earnings?
Waterdrop Inc. reports earnings on a quarterly cadence, consistent with its listing as a US-traded equity.
Waterdrop's recent results have reflected the ongoing development of its insurance brokerage and crowdfunding businesses in China's competitive digital finance landscape. Revenue trends and profitability metrics are best assessed through the company's official disclosures rather than third-party summaries.
For the most recent quarter's results and management commentary, visit Waterdrop's investor relations page directly.
WDH Price History
-78.2% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Waterdrop Inc.?
Based on Waterdrop Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
WDH Long-term Outlook
Waterdrop's Good Growth pillar rating suggests the business is on an upward trajectory, driven by expanding insurance penetration in China and growing digital adoption among health-conscious consumers. However, the Weak Quality and Moat ratings temper the outlook — sustained growth without stronger competitive defenses or improving business quality metrics could limit long-term value creation. The Neutral Risk profile indicates the company is navigating its operating environment without acute near-term stress, though regulatory dynamics in China's insurance sector remain a variable worth monitoring.
Growth drivers
- Rising demand for health insurance in China's underserved consumer market
- Digital platform scalability enabling low-cost user acquisition
- Cross-sell opportunities between crowdfunding users and insurance products
Key risks
- Regulatory changes in China's insurance and fintech sectors
- Weak moat leaving the platform vulnerable to better-capitalized competitors
- Execution risk in converting growth into durable profitability
WDH vs Peers
Waterdrop operates in a global insurtech and specialty insurance landscape alongside several distinct players.
Assurant is a large, diversified US-based specialty insurer with a long operating history and a much broader product suite than Waterdrop's China-focused digital brokerage.
IGIC focuses on specialty commercial lines globally, contrasting with Waterdrop's consumer-facing health and life insurance brokerage model in China.
Exzeo operates in the insurtech technology space, offering software infrastructure for insurers rather than Waterdrop's direct consumer brokerage and crowdfunding approach.
Frequently Asked Questions
What does Waterdrop Inc. do?
Waterdrop operates an online insurance brokerage platform in China, connecting individual consumers with health and life insurance products from licensed insurers. The company also runs a medical crowdfunding platform that helps patients raise funds for healthcare costs. It earns revenue primarily through commissions on insurance policies sold via its digital marketplace.
Does WDH pay dividends?
Yes, Waterdrop pays a regular dividend. This is relatively uncommon for a growth-stage insurtech company and signals a deliberate capital return policy. Investors should review the company's latest financial disclosures to assess dividend sustainability relative to its earnings and cash flow profile.
When does WDH report earnings?
Waterdrop reports earnings on a quarterly cadence, as is standard for US-listed equities. Our data source does not cover specific upcoming earnings dates. For confirmed reporting dates and management guidance, check Waterdrop's official investor relations page.
Is WDH a good stock to buy?
UQS Score rates WDH as Good overall. The Growth and Valuation pillars are relative strengths, while Quality and Moat are rated Weak. Whether WDH fits your portfolio depends on your risk tolerance and investment thesis. The full pillar breakdown — available to Pro members — provides a more detailed view.
Is WDH overvalued?
The UQS Valuation pillar for WDH is rated Attractive, suggesting the stock does not appear expensive relative to its fundamentals at current levels. That said, valuation should always be considered alongside quality and risk factors. Pro members can view the complete valuation metrics behind this rating.
How does WDH compare to its competitors?
Waterdrop's focus on China's consumer health insurance brokerage market sets it apart from peers like IGIC, which targets commercial specialty lines globally, and Assurant, a large diversified US insurer. Waterdrop's digital-first, crowdfunding-linked model is relatively unique, though its Weak Moat rating suggests limited competitive insulation at this stage.
What is WDH's market cap bracket?
Waterdrop is classified as a small-cap company. This places it in a segment of the market that can offer higher growth potential but also carries greater volatility and liquidity risk compared to mid- or large-cap peers in the financial services sector.
Who founded Waterdrop Inc.?
Waterdrop was founded in 2016. Founding details, including the names of the company's founders, are publicly available through Waterdrop's official corporate disclosures and widely covered in financial media covering China's insurtech sector.
Is WDH a long-term quality investment?
As a long-term quality indicator, WDH's UQS profile is mixed. The Good Growth rating and Attractive Valuation are encouraging, but the Weak Quality and Moat pillars suggest the business has not yet built durable competitive advantages. Long-term investors should weigh these factors carefully alongside China's evolving regulatory environment.
What is the main competitive advantage of Waterdrop?
Waterdrop's primary differentiator is its integrated digital ecosystem — combining insurance brokerage with a medical crowdfunding platform — which creates a unique entry point into China's health finance market. However, the UQS Moat pillar is rated Weak, indicating this advantage has not yet translated into a strongly defensible market position.
What sector does WDH belong to?
Waterdrop operates in the Financial Services sector, specifically within the insurtech and online insurance brokerage segment. Its business bridges digital technology and insurance distribution, positioning it alongside both traditional insurance intermediaries and technology-driven financial platforms in China.
Is WDH a growth stock or value stock?
Based on its UQS pillar profile, WDH shows characteristics of both. The Growth pillar is rated Good, reflecting meaningful business expansion. The Valuation pillar is rated Attractive, suggesting the stock is not priced at a premium. This combination may appeal to investors seeking growth exposure without paying a high valuation premium.
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Pro Analysis
WDH — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 21, 2026 | 61.1 | 59.3 | 35.0 | 70.3 | 59.6 | 96.7 | +6.6 |
| May 4, 2026 | 54.5 | 34.3 | 35.0 | 69.5 | 59.6 | 95.8 | +0.3 |
| Apr 29, 2026 | 54.2 | 34.3 | 35.0 | 69.3 | 59.6 | 93.7 | 0.0 |
| Apr 19, 2026 | 54.2 | 34.3 | 35.0 | 69.6 | 59.6 | 93.7 | 0.0 |
| Apr 18, 2026 | 54.2 | 34.3 | 35.0 | 69.4 | 59.6 | 93.7 | -0.9 |
| Apr 13, 2026 | 55.1 | 34.3 | 35.0 | 69.4 | 59.6 | 100.0 | +0.1 |
| Apr 10, 2026 | 55.0 | 34.3 | 35.0 | 68.9 | 59.6 | 100.0 | 0.0 |
| Apr 7, 2026 | 55.0 | 34.3 | 35.0 | 68.5 | 59.6 | 100.0 | +0.1 |
| Apr 5, 2026 | 54.9 | 34.3 | 35.0 | 68.4 | 59.6 | 100.0 | 0.0 |
| Apr 2, 2026 | 54.9 | 34.3 | 35.0 | 68.2 | 59.6 | 100.0 | — |
WDH — Pillar Breakdown
Quality
— 59.3/100 (25%)Waterdrop Inc. shows solid profitability with healthy returns on capital and reasonable margins.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 70.3/100 (20%)Waterdrop Inc. demonstrates healthy growth trends across revenue and earnings.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 59.6/100 (15%)Waterdrop Inc. maintains a reasonable risk profile with manageable debt levels.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 98.0/100 (15%)Waterdrop Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
Enterprise value multiple relative to sector median.
Moat
— 35/100 (25%)Waterdrop Inc. possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for WDH.
Score Composition
Financial Data
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How is the WDH UQS Score Calculated?
The UQS (Unified Quality Score) for Waterdrop Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Waterdrop Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Waterdrop Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.