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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2834
Positioning
Market Dominance
Manufacturing
Computer Software
$6.6B
Matthew J. Hawkins
Our mission is to simplify healthcare payments through our modern cloud-based software, enabling our healthcare clients to prioritize patient care and optimize their financial performance. We were originally incorporated in Delaware on August 13, 2019 and subsequently changed our name to Waystar Holding Corp. on August 11, 2023. Our principal offices are located at 1550 Digital Drive, #300, Lehi, Utah 84043 and 888 W. Market Street, Louisville, Kentucky.
Headcount
—
HQ Base
LEHI, Utah
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = WAY ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$WAY Waystar Holding Corp. | 45 | 54 | 65 | 19 | 49.3x | 16.6x | 2.5% | 1.7% | 100.0% | 20.8% | 9.2% | 14.5% | 0.0% | 38.0x | $6.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Waystar Holding Corp. (WAY) receives a "Reduce" rating with a composite score of 44.8/100. It ranks #2834 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for WAY.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 54 | 52 | +2NEUTRAL |
| MOMENTUM | 19 | 8 | +11ALPHA |
| VALUATION | 65 | 62 | +3NEUTRAL |
| INVESTMENT | 27 | 27 | 0NEUTRAL |
| STABILITY | 68 | 67 | +1NEUTRAL |
| SHORT INT | 66 | 77 | -11DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 17.5% vs WACC 7.7% (spread +9.8%)
GM 100% vs sector 44%, OM 21% vs sector 3%
Capital turnover 1.04x, R&D intensity 5.0%
Rev growth 15%, 2yr history
Interest coverage 14.2x, Net debt/EBITDA 2.7x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Waystar Holding Corp. (WAY) as a Reduce with a composite score of 44.8/100 at a current price of $25.24. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Waystar Holding Corp. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 44.8/100 places it at rank #2834 in our full universe.
Narrow
Low
Poor
Undervalued
Gross margins of 100% signal strong pricing power.
Value factor score of 65 suggests attractive pricing.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 49.3x leaves little room for execution misses.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Waystar Holding Corp. represents a reduce based on multi-factor quantitative performance.
Waystar Holding Corp. receives a Reduce rating from our analysis, with a composite score of 44.8/100 and 2 out of 5 stars, ranking #2834 out of 7,333 stocks. WAY's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
With a quality score of 54/100, WAY shows adequate but unremarkable business quality. The company reports a return on equity of 2.5% (sector avg: -1.9%), gross margins of 100.0% (sector avg: 44.1%), net margins of 9.2% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
WAY's value score of 65/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 49.28x, an EV/EBITDA of 16.64x, a P/B ratio of 1.24x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Waystar Holding Corp.'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 14.5% vs. a sector average of 6.7% and a return on assets of 1.7% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Waystar Holding Corp. is experiencing notably weak momentum with a score of just 19/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 14.5% year-over-year, while a beta of 0.84 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
WAY shows good financial stability with a score of 68/100. Key stability metrics include a beta of 0.84 and a debt-to-equity ratio of 38.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
WAY carries a short interest score of 66/100, indicating moderate short selling activity. This is a neutral reading — not enough to signal systemic bearishness, but worth monitoring. Specific risk factors include elevated leverage (D/E: 38.00x). At $6.6B market cap (mid-cap), Waystar Holding Corp. offers reasonable institutional liquidity.
Waystar Holding Corp. is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2834 of 7,333 overall (61st percentile). Key comparisons include ROE of 2.5% exceeding the -1.9% sector median and operating margins of 20.8% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While WAY currently exhibits a REDUCE profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Momentum (19) would have the largest impact on the composite score.
EV/EBITDA 45% ABOVE SECTOR MEDIAN
ROE 232% BELOW SECTOR MEDIAN
Gross Margin 127% ABOVE SECTOR MEDIAN (FAVORABLE)
Westwind Capital completely exited its $16 million position in Waystar (420,897 shares), which represented 3.3% of the fund's assets. The sale comes despite Waystar's strong fundamentals—including 12% YoY revenue growth and 42% adjusted EBITDA margins—but reflects the stock's 12% decline over the past year and underperformance versus the S&P 500 by nearly 30 percentage points. The fund's remaining portfolio is now concentrated in mega-cap compounders like Visa, Mastercard, Alphabet, and Amazon.
Waystar (Nasdaq: WAY), a provider of leading healthcare payment software, today announced that its AI capabilities earned the top ranking in the revenue cycle management industry, according to an independent survey by Black Book Market Research™ focused on agentic and generative AI in revenue cycle management.
As February 2026 begins, the U.S. stock market shows a robust start with major indices like the Dow Jones Industrial Average and S&P 500 posting significant gains. In this environment of renewed optimism, identifying stocks that may be trading below their estimated value can offer intriguing opportunities for investors looking to capitalize on potential growth amid favorable market conditions.
Wells Fargo analyst Stan Berenshteyn maintains Waystar Holding (NASDAQ:WAY) with a Overweight and lowers the price target from $41 to $36.
Canaccord Genuity analyst Richard Close maintains Waystar Holding (NASDAQ:WAY) with a Buy and lowers the price target from $54 to $30.
Above 50MA
37.18%
Net New Highs
+51081