Beauty Health (SKIN) AI Stock Analysis

• Market Cap: $175.02M
• Dividend Yield: N/A
• Average Volume (3M): 1.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.73
• 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: 126,825,390
• 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: 2.47
• Enterprise Value/Revenue: 1.43
• Enterprise Value/Gross Profit: 2.21
• Enterprise Value/Ebitda: 14.86
• 1Y Price Target: $2.13
• Price Target Upside: 46.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $1.50 ▲(3.45% Upside)

The overall stock score of 47 reflects significant financial and valuation challenges, with high leverage and ongoing losses. While there are some operational improvements and strategic initiatives, the technical analysis and earnings call indicate mixed signals, contributing to a cautious outlook.

Positive Factors

Adjusted EBITDA Growth

The growth in adjusted EBITDA indicates effective cost management and operational efficiency, which can enhance profitability and financial stability over time.

Consumable Mix Increase

An increased focus on consumables, which provide recurring revenue, can stabilize income streams and reduce reliance on one-time device sales.

Successful New Product Launches

New product launches that drive sales growth can strengthen market position and enhance competitive advantage by meeting evolving consumer needs.

Negative Factors

Overall Revenue Decline

A decline in overall revenue suggests challenges in maintaining market share and could impact long-term growth prospects if not addressed.

High Leverage

High leverage can limit financial flexibility and increase risk, potentially affecting the company's ability to invest in growth opportunities.

Device Segment Revenue Decline

Significant declines in device sales highlight potential issues in product demand or market saturation, impacting revenue diversification.

Beauty Health Business Overview & Revenue Model

Company Description

Beauty Health (SKIN) is a leading innovator in the beauty and wellness industry, focusing on skincare products that harness the power of health and beauty science. The company specializes in developing and marketing advanced skin health solutions, including proprietary formulations that combine dermatological expertise with consumer-friendly applications. Its core products are designed to enhance skin appearance and health, catering to a diverse clientele that values both efficacy and sustainability in beauty care.

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 profitability and high leverage, as evidenced by negative net margins and a high debt-to-equity ratio. Despite some improvement in cash flow generation, operational inefficiencies and debt management remain critical issues.

Income Statement

The income statement shows mixed results. The TTM gross profit margin is relatively strong at 61.5%, indicating efficient cost management. However, the net profit margin is negative at -6.1%, reflecting ongoing losses. Revenue has declined by 3.8% in the TTM, signaling potential challenges in maintaining sales growth. The EBIT and EBITDA margins are also negative, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reveals significant leverage with a high debt-to-equity ratio of 5.09 in the TTM, which could pose financial risks. The return on equity is negative, indicating that the company is not generating profits from its equity base. The equity ratio is low, reflecting a heavy reliance on debt financing.

Cash Flow

Cash flow analysis shows improvement, with a 22.2% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.66, indicating decent cash generation relative to net income. However, the free cash flow to net income ratio is 0.93, suggesting that most of the net income is being converted into free cash flow.

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: Neutral
• Last Price: 1.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Neutral. The current price of 1.45 is above the 20-day moving average (MA) of 1.35, below the 50-day MA of 1.56, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 81.54 is Negative, 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
EPC	63 Neutral	$828.46M	33.41	1.62%	3.26%	-1.34%	-73.59%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EWCZ	62 Neutral	$210.92M	14.88	15.38%	―	-5.47%	13.42%
NUS	61 Neutral	$507.49M	4.78	14.55%	2.31%	-12.10%	―
SKIN	47 Neutral	$175.02M	-4.90	-18.73%	―	-13.14%	57.98%
HELE	47 Neutral	$438.93M	―	-52.84%	―	-5.64%	-577.74%
SLSN	45 Neutral	$153.06M	155.00	6.60%	―	30.04%	-53.50%

Beauty Health Corporate Events

Beauty Health Co. Earnings Call: Mixed Results and Strategic Focus

The recent earnings call for Beauty Health Company presented a balanced mix of optimism and challenges. On the positive side, the company reported growth in adjusted EBITDA, an improved consumable mix, successful new product launches, and significant achievements in inventory management. However, these positive elements were tempered by declines in overall revenue, significant drops in the device segment and APAC revenues, and concerns about the churn rate among providers. While operational improvements and strategic initiatives offer promise, ongoing pressures in device sales and regional performance remain notable challenges.

Beauty Health Company Exceeds Earnings Expectations in Q3 2025

The Beauty Health Company, a medtech meets beauty enterprise, is renowned for its flagship brand Hydrafacial, offering innovative skin health experiences through hydradermabrasion, nanoneedling, and microneedling technologies.

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.

The most recent analyst rating on (SKIN) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

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.

The most recent analyst rating on (SKIN) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

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.

The most recent analyst rating on (SKIN) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Beauty Health stock, see the SKIN Stock Forecast page.

Beauty Health Co. Earnings Call Highlights Strong Performance

The Beauty Health Company’s recent earnings call showcased a strong financial performance, marked by significant improvements in revenue, adjusted EBITDA, and gross margins. The company celebrated successful product launches and strategic debt restructuring, although it acknowledged challenges such as declining device revenue, regional revenue declines, and increased churn. The macroeconomic environment and seasonal factors are expected to impact the upcoming quarter.