Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $191.25M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.12
• Revenue Growth: -13.14%
• EPS Growth: 57.98%
• Country: US
• Employees: 769
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): -0.09
• Shares Outstanding: 127,503,060
• 10 Day Avg. Volume: 926,645
• 30 Day Avg. Volume: 1,036,656
• 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: 2.15
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 2.11
• Enterprise Value/Ebitda: 14.15
• 1Y Price Target: $2.13
• Price Target Upside: 39.22% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: $1.50 ▼(-1.96% Downside)

The overall stock score reflects significant financial challenges, including declining revenues and high leverage. While technical indicators show some short-term strength, valuation concerns and mixed earnings call results weigh on the score. The positive corporate event provides a slight uplift, but substantial operational improvements are needed for a more favorable outlook.

Positive Factors

Management Quality

The appointment of Pedro Malha as CEO, with his extensive experience in healthcare and medical devices, is expected to drive innovation and operational efficiency, enhancing long-term strategic direction.

Strategic Initiatives

The strategic focus on expanding the Hydrafacial installed base and driving consumable utilization supports predictable and profitable revenue growth, strengthening the company's market position.

Product Innovation

Successful new product launches like Hydralock HA and HydraFillic with Pep9 Boosters demonstrate the company's commitment to innovation, enhancing its competitive edge and driving future sales.

Negative Factors

Revenue Decline

The decline in overall revenue reflects ongoing challenges in market demand and competitive pressures, potentially impacting long-term financial stability and growth prospects.

High Leverage

High leverage poses financial risks, limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

APAC Revenue Drop

The significant drop in APAC revenue due to a transition to a distributor model in China highlights regional challenges and could affect the company's global expansion strategy.

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

The company faces challenges with declining revenues and profitability pressures. High leverage poses financial risks, though there is some improvement in cash flow generation. The company needs to address operational inefficiencies and manage debt levels to enhance financial stability.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -2.63% TTM. Gross profit margin remains relatively strong at 64.81% TTM, but the company struggles with profitability, evidenced by a negative net profit margin of -3.89% TTM. EBIT and EBITDA margins are also weak, indicating operational challenges.

Balance Sheet

The balance sheet reveals high leverage with a debt-to-equity ratio of 5.77 TTM, indicating significant reliance on debt financing. Return on equity is negative, reflecting losses and potential risk to equity holders. The equity ratio is low, suggesting limited equity buffer against liabilities.

Cash Flow

Cash flow analysis shows a modest improvement in free cash flow growth at 3.83% TTM. However, the operating cash flow to net income ratio is below 1, indicating potential cash flow constraints. The free cash flow to net income ratio is close to 1, suggesting that free cash flow is nearly covering net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	301.92M	334.29M	397.99M	365.88M	260.09M	119.09M
Gross Profit	195.67M	182.30M	155.11M	248.78M	178.54M	67.20M
EBITDA	29.12M	10.34M	-53.56M	81.60M	-350.93M	-2.81M
Net Income	-11.74M	-29.10M	-100.12M	44.22M	-378.76M	-29.18M
Balance Sheet
Total Assets	503.64M	685.68M	929.11M	1.00B	1.22B	222.84M
Cash, Cash Equivalents and Short-Term Investments	219.40M	370.06M	523.02M	568.20M	901.89M	9.49M
Total Debt	378.98M	568.16M	752.29M	751.79M	746.41M	216.54M
Total Liabilities	437.98M	633.88M	869.72M	836.03M	916.51M	252.79M
Stockholders Equity	65.66M	51.80M	59.39M	167.05M	302.30M	-29.96M
Cash Flow
Free Cash Flow	37.87M	9.34M	8.70M	-123.99M	-43.98M	-16.25M
Operating Cash Flow	38.76M	16.13M	21.75M	-106.60M	-28.36M	-12.44M
Investing Cash Flow	-4.64M	-6.79M	-31.51M	-18.87M	-37.73M	-3.82M
Financing Cash Flow	-175.18M	-158.34M	-37.45M	-205.24M	959.03M	18.27M

Beauty Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Positive. The current price of 1.53 is above the 20-day moving average (MA) of 1.43, above the 50-day MA of 1.42, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKIN.

Beauty Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EWCZ	64 Neutral	$203.31M	14.46	15.38%	―	-5.47%	13.42%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NUS	61 Neutral	$509.93M	4.81	14.55%	2.29%	-12.10%	―
EPC	58 Neutral	$843.33M	34.01	1.62%	3.37%	-1.34%	-73.59%
HELE	53 Neutral	$472.55M	-0.69	-52.84%	―	-5.64%	-577.74%
SKIN	51 Neutral	$191.25M	-6.92	-18.73%	―	-13.14%	57.98%
SLSN	50 Neutral	$143.90M	145.00	6.60%	―	30.04%	-53.50%

Beauty Health Corporate Events

Beauty Health Appoints Dr. Philippe Schaison to Board

On October 30, 2025, The Beauty Health Company appointed Dr. Philippe Schaison to its Board of Directors, recognizing his extensive experience in scaling global beauty and aesthetics businesses. Dr. Schaison, who currently serves as CEO of Soltégo, Inc., brings over 20 years of leadership in the aesthetics, biotech, and consumer health industries. His appointment is expected to enhance the company’s strategic direction and accelerate growth, particularly for its Hydrafacial brand.

Pedro Malha Appointed CEO of Beauty Health

On October 1, 2025, Pedro Malha will assume the role of President and CEO of The Beauty Health Company, succeeding Marla Beck, who will transition to an advisory role. Malha’s extensive experience in the healthcare and medical device sectors positions him to lead the company into its next growth phase, building on Beck’s efforts to enhance innovation and operational efficiency.