Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $272.19M
• Dividend Yield: N/A
• Average Volume (3M): 846.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.46
• Revenue Growth: -17.97%
• EPS Growth: 49.13%
• Country: US
• Employees: 769
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Household & Personal Products
• EPS (TTM): -0.08
• Shares Outstanding: 126,012,450
• 10 Day Avg. Volume: 1,425,268
• 30 Day Avg. Volume: 846,225
• PEG Ratio: 0.27
• Price to Book (P/B): 4.34
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.76
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 2.17
• Enterprise Value/Ebitda: -81.96
• 1Y Price Target: $1.56
• Price Target Upside: -26.07% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 55 Neutral
• Price Target: $2.00 ▼(-5.21%Downside)

Beauty Health's overall stock score is driven by significant financial challenges, including high leverage and negative profitability, despite some positive momentum in the stock's technicals. The earnings call provided a mixed outlook with both strengths in revenue performance and weaknesses in equipment sales. Recent corporate actions to refinance debt offer some strategic relief.

Positive Factors

Consumer Loyalty

High net promoter scores, efficacy, and sticky loyalty program are key long-term positives.

Financial Performance

Beauty Health's first-quarter sales exceeded expectations despite macroeconomic pressures.

Operational Improvements

Gross margin and adjusted EBITDA were above expectations due to the company's focus on operational improvements.

Negative Factors

Credit Conditions

Management said they saw tightening credit conditions and longer lags between lead generation and closing.

Macroeconomic Conditions

Challenging macroeconomic conditions, especially outside the United States, led to a (40.0%) year-over-year decline in equipment sales.

Revenue Impact

The company plans to switch to a distributor model from a direct sales model during 2025, which is expected to have a $10-15 million negative impact on revenue.

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 makes money through the sale of its skincare products and services, which include a variety of treatments and therapies aimed at improving skin health. The company generates revenue by selling its products directly to consumers through retail and online channels, as well as through partnerships with spas, clinics, and beauty professionals who offer its treatments. Additionally, Beauty Health may engage in licensing agreements or collaborations with other brands to expand its market presence and drive sales.

Beauty Health Financial Statement Overview

Summary

Beauty Health faces significant financial challenges with declining revenues and profitability issues. Negative profit margins and high leverage highlight risks, though cash flow has improved. The company must manage debt and operational inefficiencies for long-term 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	250.34M	181.83M	67.20M
EBITDA	-7.82M	10.34M	-56.00M	80.75M	-344.44M	-2.81M
Net Income	-38.52M	-29.10M	-100.12M	44.22M	-375.11M	-29.18M
Balance Sheet
Total Assets	994.95M	685.68M	929.11M	1.01B	1.22B	222.84M
Cash, Cash Equivalents and Short-Term Investments	532.28M	370.06M	523.02M	568.20M	901.89M	9.49M
Total Debt	752.38M	568.16M	752.29M	751.79M	729.91M	216.54M
Total Liabilities	847.29M	633.88M	869.72M	837.43M	916.51M	252.79M
Stockholders Equity	147.66M	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: Positive
• Last Price: 2.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 2.11 is above the 20-day moving average (MA) of 1.74, above the 50-day MA of 1.53, and above the 200-day MA of 1.51, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 69.71 is Neutral, neither overbought nor oversold. The STOCH value of 84.45 is Negative, 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
HELE	69 Neutral	$713.22M	6.16	7.45%	―	-4.93%	-23.61%
EWCZ	66 Neutral	$310.25M	28.01	11.85%	―	-2.93%	-17.72%
EPC	64 Neutral	$1.15B	14.29	5.53%	2.45%	-2.11%	-28.79%
NUS	61 Neutral	$437.80M	―	-4.93%	2.71%	-11.85%	-1080.00%
COTY	58 Neutral	$4.28B	40.12	-10.58%	―	-1.68%	-302.11%
Sector *	56 Neutral	HK$23.69B	3.90	-1.57%	6.91%	0.06%	-64.88%
SKIN	55 Neutral	$272.19M	―	-70.44%	―	-17.97%	49.13%

Beauty Health Corporate Events

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.

The most recent analyst rating on (SKIN) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Beauty Health Issues $250M Convertible Notes

On May 27, 2025, The Beauty Health Company issued $250 million in 7.95% Convertible Senior Secured Notes due 2028, which are senior secured obligations guaranteed by certain subsidiaries and secured by substantially all assets of the company. This financial move is significant for the company’s operations as it provides liquidity and flexibility, allowing noteholders the option to convert notes into common stock, with provisions for adjustments in conversion rates upon certain corporate events, potentially impacting stakeholders by altering the company’s capital structure and market positioning.

The most recent analyst rating on (SKIN) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Beauty Health Refinances Debt to Strengthen Position

On May 21, 2025, The Beauty Health Company announced it had entered into exchange agreements to refinance its debt, exchanging $413.2 million of existing convertible notes for $250 million of new senior secured notes due 2028 and $143.4 million in cash. This move aims to strengthen the company’s financial position and extend debt maturity, allowing for greater investment in growth strategies, including product development and brand initiatives.

The most recent analyst rating on (SKIN) stock is a Hold with a $1.20 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.