Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $259.99M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.68
• Revenue Growth: -15.33%
• EPS Growth: 75.52%
• Country: US
• Employees: 769
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.16
• Shares Outstanding: 126,825,390
• 10 Day Avg. Volume: 1,241,599
• 30 Day Avg. Volume: 1,041,683
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.66
• Enterprise Value/Revenue: 1.34
• Enterprise Value/Gross Profit: 2.37
• Enterprise Value/Ebitda: -55.33
• 1Y Price Target: $2.30
• Price Target Upside: 12.20% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 50 Neutral
• Price Target: $2.00 ▼(-2.44% Downside)

The overall stock score reflects significant financial challenges, including high leverage and negative profit margins. However, positive developments from the earnings call, such as improved margins and strategic debt restructuring, provide some optimism. Technical indicators suggest a bearish trend, and valuation metrics highlight ongoing financial difficulties.

Positive Factors

Margin Improvement

Improved margins indicate better cost management and operational efficiency, enhancing profitability and competitive positioning long-term.

Cash Position and Debt Restructuring

A strong cash position and strategic debt restructuring provide financial stability and flexibility to invest in growth opportunities.

Innovation and Product Launches

Continuous innovation and new product launches strengthen market position and drive long-term revenue growth by meeting evolving consumer needs.

Negative Factors

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth and potentially impacting long-term financial stability.

Declining Revenue

Declining revenue growth indicates potential market challenges and could hinder the company's ability to scale and achieve sustainable profitability.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies and could impact the company's ability to generate sustainable profits and reinvest in growth.

Beauty Health Business Overview & Revenue Model

Company Description

The Beauty Health Company designs, develops, manufactures, markets, and sells aesthetic technologies and products worldwide. The company's flagship product includes HydraFacial that enhance the skin to cleanse, peel, exfoliate, extract, infuse, and hydrate the skin with proprietary solutions and serums. Its products also comprise Syndeo, a HydraFacial Delivery System designed to elevate every part of the treatment and connects providers to the consumer's preferences to create a more personalized experience; HydraFacial Nation App, an app that allows consumers to learn about their skin health, discover treatment options, and track their treatments over time; and Keravive, a treatment for scalp health. The company was founded in 1997 and is headquartered in Long Beach, California.

How the Company Makes Money

Beauty Health generates revenue primarily through the sale of its skincare products, which include serums, creams, and treatment solutions. The company employs a direct-to-consumer sales model via its online platform, as well as a wholesale distribution strategy that targets beauty retailers and dermatology clinics. Additionally, Beauty Health benefits from strategic partnerships with beauty influencers and dermatologists, which not only enhances brand visibility but also drives sales through trusted recommendations. The company may also explore collaborations with health and wellness brands for co-branded products, further diversifying its revenue streams.

Beauty Health Financial Statement Overview

Summary

Beauty Health faces significant financial challenges with declining revenues and profitability issues. While cash flow has improved, high leverage and negative profit margins highlight risks. The company needs to address operational inefficiencies and manage debt levels to ensure long-term financial stability.

Income Statement

The company exhibits declining revenue, with a growth rate of -3.53% from 2024 to TTM. Profit margins are negative due to significant net losses, demonstrated by a TTM net profit margin of -11.94%. The gross profit margin stands at 56.60%, indicating a decent cost management relative to revenue. However, negative EBIT and EBITDA margins suggest operational inefficiencies.

Balance Sheet

The balance sheet reveals high leverage, with a debt-to-equity ratio of 12.32, posing a substantial risk. The equity ratio is low at 6.83%, indicating limited equity cushion. Return on equity is negative due to net losses. The company's reliance on debt over equity increases financial risk.

Cash Flow

Cash flow analysis shows improvement, with a 219.42% growth in free cash flow from 2024 to TTM. The operating cash flow to net income ratio indicates better cash generation than reported net income. However, the free cash flow to net income ratio is still below optimal levels, suggesting cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	322.47M	334.29M	397.99M	365.88M	260.09M	119.09M
Gross Profit	182.51M	182.30M	155.11M	248.78M	178.54M	67.20M
EBITDA	-7.82M	10.34M	-53.56M	80.75M	-22.00M	-2.81M
Net Income	-38.52M	-29.10M	-100.12M	44.22M	-375.11M	-29.18M
Balance Sheet
Total Assets	673.82M	685.68M	929.11M	1.01B	1.22B	222.84M
Cash, Cash Equivalents and Short-Term Investments	373.03M	370.06M	523.02M	568.20M	901.89M	9.49M
Total Debt	567.69M	568.16M	752.29M	751.79M	746.41M	216.54M
Total Liabilities	627.76M	633.88M	869.72M	837.43M	916.51M	252.79M
Stockholders Equity	46.06M	51.80M	59.39M	171.48M	302.30M	-29.96M
Cash Flow
Free Cash Flow	29.85M	9.34M	8.70M	-123.99M	-43.98M	-16.25M
Operating Cash Flow	35.98M	16.13M	21.75M	-106.60M	-28.36M	-12.44M
Investing Cash Flow	-6.14M	-6.79M	-31.51M	-18.87M	-37.73M	-3.82M
Financing Cash Flow	-99.97M	-158.34M	-37.45M	-205.24M	959.03M	18.27M

Beauty Health Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Neutral. The current price of 2.05 is below the 20-day moving average (MA) of 2.24, above the 50-day MA of 2.03, and above the 200-day MA of 1.64, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.10 is Neutral, neither overbought nor oversold. The STOCH value of 6.99 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKIN.

Beauty Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NUS	78 Outperform	587.54M	5.92	12.80%	2.00%	-11.79%	―
EWCZ	65 Neutral	230.27M	19.44	16.33%	―	-5.04%	-22.01%
EPC	58 Neutral	917.67M	14.59	4.13%	3.09%	-2.92%	-43.06%
HELE	51 Neutral	525.91M	-1.64	-27.14%	―	-4.39%	-326.42%
SKIN	50 Neutral	$259.99M	―	-26.54%	―	-15.33%	75.52%
COTY	47 Neutral	3.45B	-8.98	-9.98%	―	-3.68%	-631.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Beauty Health Corporate Events

Beauty Health Modifies Indenture for Convertible Notes

On September 4, 2025, The Beauty Health Company, along with its domestic and foreign subsidiaries, entered into a Supplemental Indenture with U.S. Bank Trust Company to modify an existing indenture related to its 7.95% Convertible Senior Notes due 2028. This modification includes securing the notes with a first-priority guarantee by new foreign subsidiaries and addressing certain ambiguities in the original indenture, potentially strengthening the company’s financial structure and enhancing investor confidence.

Beauty Health Amends Governance Documents and Leadership

On July 31, 2025, The Beauty Health Company filed a Certificate of Correction to amend an error in its corporate governance documents, allowing directors to be removed with or without cause by a majority vote. Additionally, the Board appointed Stephen Fanning as Chairman of the Nominating and Corporate Governance Committee, reflecting a strategic move in its leadership structure.

Beauty Health Holds Virtual Annual Stockholders Meeting

On June 12, 2025, The Beauty Health Company held its annual stockholders meeting virtually, where 78.40% of the shares were represented, establishing a quorum. During the meeting, seven directors were elected for a one-year term, Deloitte & Touche LLP was ratified as the independent auditor, and the compensation for named executive officers was approved on a non-binding basis.