Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $182.63M
• Dividend Yield: N/A
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• 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: 848,373
• 30 Day Avg. Volume: 1,031,378
• PEG Ratio: 0.10
• Price to Book (P/B): 3.80
• Price to Sales (P/S): 0.59
• P/FCF Ratio: 21.08
• Enterprise Value/Market Cap: 2.37
• Enterprise Value/Revenue: 1.40
• Enterprise Value/Gross Profit: 2.27
• Enterprise Value/Ebitda: 20.90
• 1Y Price Target: $2.20
• Price Target Upside: 52.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 44 Neutral
• Price Target: $1.50 ▲(4.17% Upside)

The overall stock score reflects significant financial and technical challenges, with high leverage and bearish technical indicators weighing heavily. However, positive earnings call results, including margin improvements and strategic initiatives, provide some optimism for future performance.

Positive Factors

Strategic Debt Restructuring

The strategic debt restructuring and strong cash position enhance the company's financial flexibility, allowing for better resource allocation and investment in growth opportunities.

Strong Consumables Business

The robust performance of the consumables segment, which constitutes a significant portion of revenue, indicates a stable and recurring revenue stream, contributing to long-term business sustainability.

New CEO Appointment

The appointment of a new CEO with a strong background in leading a major division at Abbott Laboratories could bring fresh strategic insights and drive innovation, potentially strengthening the company's market position.

Negative Factors

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth and increasing vulnerability to economic downturns, which could impact long-term stability.

Decline in Global Device Revenue

The significant decline in device revenue highlights challenges in capital equipment sales, which could affect overall revenue growth if not addressed, impacting the company's market competitiveness.

Revenue Decline in APAC

The substantial revenue decline in APAC due to business model transition indicates regional market challenges, potentially affecting global expansion efforts and revenue diversification.

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	310.06M	334.29M	397.99M	365.88M	260.09M	119.09M
Gross Profit	190.69M	182.30M	155.11M	248.78M	178.54M	67.20M
EBITDA	20.71M	10.34M	-53.56M	80.75M	-22.00M	-2.81M
Net Income	-19.00M	-29.10M	-100.12M	44.22M	-375.11M	-29.18M
Balance Sheet
Total Assets	507.56M	685.68M	929.11M	1.01B	1.22B	222.84M
Cash, Cash Equivalents and Short-Term Investments	212.00M	370.06M	523.02M	568.20M	901.89M	9.49M
Total Debt	376.73M	568.16M	752.29M	751.79M	746.41M	216.54M
Total Liabilities	433.56M	633.88M	869.72M	837.43M	916.51M	252.79M
Stockholders Equity	74.00M	51.80M	59.39M	171.48M	302.30M	-29.96M
Cash Flow
Free Cash Flow	36.48M	9.34M	8.70M	-123.99M	-43.98M	-16.25M
Operating Cash Flow	39.43M	16.13M	21.75M	-106.60M	-28.36M	-12.44M
Investing Cash Flow	-5.65M	-6.79M	-31.51M	-18.87M	-37.73M	-3.82M
Financing Cash Flow	-174.59M	-158.34M	-37.45M	-205.24M	959.03M	18.27M

Beauty Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.44 is below the 20-day moving average (MA) of 1.79, below the 50-day MA of 2.03, and below the 200-day MA of 1.66, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 30.56 is Neutral, neither overbought nor oversold. The STOCH value of 18.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$527.65M	5.32	13.68%	2.25%	-11.79%	―
EWCZ	65 Neutral	$191.62M	17.16	10.98%	―	-5.04%	-22.01%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SLSN	61 Neutral	$275.58M	54.16	34.76%	―	65.67%	―
EPC	58 Neutral	$929.28M	14.77	4.12%	3.00%	-2.92%	-43.06%
HELE	48 Neutral	$457.58M	5.74	-52.84%	―	-5.64%	-577.74%
SKIN	44 Neutral	$182.63M	―	-26.54%	―	-15.33%	75.52%

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.