Waystar Holding Corp. (NASDAQ:WAY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Waystar Holding Corp. develops a cloud-based software solution for healthcare payments. The US$6.4b market-cap company posted a loss in its most recent financial year of US$51m and a latest trailing-twelve-month loss of US$53m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Waystar Holding's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Waystar Holding is bordering on breakeven, according to the 8 American Healthcare Services analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$71m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 117%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won't go into details of Waystar Holding's upcoming projects, though, take into account that by and large a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Waystar Holding is its relatively high level of debt. Generally, the rule of thumb is debt shouldn't exceed 40% of your equity, which in Waystar Holding's case is 41%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of Waystar Holding to cover in one brief article, but the key fundamentals for the company can all be found in one place – Waystar Holding's company page on Simply Wall St. We've also compiled a list of key aspects you should further examine:

1. Valuation: What is Waystar Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Waystar Holding is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Waystar Holding's board and the CEO's background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.