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Yatsen Holding Ltd. (YSG)
:YSG
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Yatsen Holding
(NYSE:YSG)
Rating:56Neutral
Price Target:
$10.50
▲(3.75%Upside)
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$912.05M
Dividend YieldN/A
Average Volume (3M)670.57K
Price to Earnings (P/E)―
Beta (1Y)0.29
Revenue Growth0.23%
EPS Growth26.92%
CountryUS
Employees1,350
SectorConsumer Cyclical
Sector Strength56
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.00
Shares Outstanding61,829,636
10 Day Avg. Volume1,014,744
30 Day Avg. Volume670,574
Financial Highlights & Ratios
PEG Ratio-0.70
Price to Book (P/B)2.23
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Yatsen Holding Business Overview & Revenue Model
Company DescriptionYatsen Holding Limited is a leading Chinese beauty and skincare company, known for its innovative and diverse range of beauty products. The company operates primarily in the cosmetics and personal care sector, with a portfolio that includes well-known brands such as Perfect Diary, Little Ondine, and Abby's Choice. Yatsen leverages advanced technology and deep consumer insights to develop products that cater to the evolving preferences of its customers.
How the Company Makes MoneyYatsen Holding generates revenue through the sale of its beauty and skincare products across multiple channels, including online platforms and offline retail stores. A significant portion of its revenue comes from e-commerce sales, leveraging China's extensive digital marketplace, with platforms like Tmall, JD.com, and its own direct-to-consumer channels playing critical roles. Additionally, Yatsen benefits from strategic partnerships with influencers and social media campaigns, which enhance its brand visibility and drive consumer engagement. The company's ability to quickly adapt to market trends and innovate in product development also contributes to its financial performance.
Yatsen Holding Earnings Call Summary
Earnings Call Date:May 16, 2025
(Q1-2025)
| % Change Since: 91.67%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Positive
The earnings call for Yatsen's first quarter of 2025 presented a strong overall performance driven by significant growth in skincare brands, improved profitability, and strategic cost management. Despite a decline in color cosmetics revenue and a soft market environment, the company achieved a notable turnaround in non-GAAP net income and launched several new products. Corporate milestones and a new share repurchase program further demonstrate confidence in future growth.Q1-2025 Updates
Positive Updates
Significant Revenue Growth in Skincare Brands
Net revenues from skincare brands rose by 47.7% year-over-year, driven by a 58% increase from clinical and premium skincare brands such as Galénic, DR. WU, and Eve Lom.
Improved Profitability
The overall gross margin increased to 79.1% from 77.7% in the prior year. The net loss margin was reduced by 15.5 percentage points to 0.7% from 15.1% in the prior year.
Non-GAAP Net Income Turnaround
Achieved a non-GAAP net income of RMB7.1 million, a significant turnaround from a non-GAAP net loss of RMB83.8 million in the prior year period.
Strategic Cost Management
General and administrative expenses decreased to 7.8% of total net revenues, down by 10.3 percentage points from the previous year.
Launch of New Skincare Products
Introduction of new products such as the upgraded Michaelmasque series and the Targeted Acne Cleaning Serum, contributing to strong brand performance.
Corporate Milestones
The global R&D center in Shanghai was accredited by the China National Accreditation Service, reinforcing strategic focus on R&D.
Share Repurchase Program
Board of Directors approved a new share repurchase program for up to $30 million worth of ordinary shares over the next 24 months.
Negative Updates
Decline in Color Cosmetics Revenue
Net revenues from color cosmetics brands decreased by 9.9% year-over-year.
Soft Market Environment
China's beauty market saw modest growth with beauty retail sales rising only 3.2% year-over-year, trailing the 4.6% growth in total retail sales of consumer goods.
Company Guidance
During the first quarter of 2025, Yatsen's financial performance aligned with its guidance, showcasing a 7.8% year-over-year increase in total net revenues. This growth was notably driven by a 47.7% surge in net revenues from skincare brands, such as Galénic and DR. WU, offset by a 9.9% decline in color cosmetics brands. The company enhanced its profitability, with the overall gross margin rising to 79.1% from 77.7% the previous year. Strategic marketing and streamlined expenses led to a significant reduction in net loss margin, down to 0.7% from 15.1%. Yatsen achieved a non-GAAP net income of RMB7.1 million, a remarkable turnaround from a loss of RMB83.8 million the prior year. Additionally, Yatsen's Board approved a $30 million share repurchase program, indicating confidence in its future potential. For the second quarter of 2025, the company projects total net revenues between RMB810.4 million and RMB889.9 million, marking an anticipated year-over-year increase of 2% to 12%.Yatsen Holding Financial Statement Overview
Summary
Yatsen Holding is facing significant financial challenges. Revenue and profitability have been declining, with negative margins and cash flow issues. Despite a robust equity position, the lack of positive cash flow raises questions about financial sustainability. The company needs strategic improvements to reverse these trends.Income Statement
Yatsen Holding's revenue has been on a declining trend with a significant decrease from 2021 to 2024. The company is facing difficulties in profitability as evidenced by consistent negative net profit and EBIT margins. The TTM data shows a net profit margin of -20.9% and an EBIT margin of -24.3%, indicating operational challenges.40
Negative
Balance Sheet
The company maintains a strong equity position relative to its debt, with a low debt-to-equity ratio of 0.05 for TTM. However, the equity ratio has slightly decreased, indicating a reduction in asset base leverage. Return on equity remains negative, reflecting ongoing profitability issues.55
Neutral
Cash Flow
Yatsen Holding's cash flow situation is concerning, with zero operating and free cash flow in the TTM period. Historically, the company has struggled to generate positive free cash flow, raising concerns about cash sustainability and operational efficiency.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.45B | 3.39B | 3.41B | 3.71B | 5.84B | 5.23B |
| Gross Profit | 2.68B | 2.62B | 2.51B | 2.52B | 3.90B | 3.36B |
| EBITDA | -266.00M | -307.06M | -355.91M | -589.63M | -1.20B | -2.42B |
| Net Income | -588.88M | -708.17M | -747.76M | -821.33M | -1.55B | -2.69B |
Balance Sheet | ||||||
| Total Assets | 3.88B | 3.97B | 5.01B | 5.86B | 7.27B | 8.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 1.36B | 2.10B | 2.59B | 3.14B | 5.73B |
| Total Debt | 159.86M | 148.94M | 113.23M | 132.58M | 421.15M | 527.21M |
| Total Liabilities | 762.66M | 867.85M | 821.24M | 800.13M | 1.26B | 1.44B |
| Stockholders Equity | 3.07B | 3.06B | 4.14B | 4.72B | 5.66B | 6.85B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -300.69M | -151.41M | 76.88M | -1.19B | -1.37B |
| Operating Cash Flow | 0.00 | -243.67M | -107.44M | 136.21M | -1.02B | -983.37M |
| Investing Cash Flow | 0.00 | 592.12M | -260.49M | -1.16B | -1.48B | -508.83M |
| Financing Cash Flow | 0.00 | -394.23M | -342.45M | -654.45M | -1.71M | 6.68B |
Yatsen Holding Technical Analysis
Positive
10.12
Price Trends
6.39
Positive
5.31
Positive
4.57
Positive
Market Momentum
1.15
Positive
68.96
Neutral
41.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YSG, the sentiment is Positive. The current price of 10.12 is above the 20-day moving average (MA) of 8.91, above the 50-day MA of 6.39, and above the 200-day MA of 4.57, indicating a bullish trend. The MACD of 1.15 indicates Positive momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 41.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YSG.
Yatsen Holding Risk Analysis
Yatsen Holding disclosed 109 risk factors in its most recent earnings report. Yatsen Holding reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Yatsen Holding Peers Comparison
Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $7.76B | 7.84 | 19.00% | 3.19% | -5.90% | -11.16% | |
75 Outperform | $1.54B | 30.66 | 11.97% | ― | 9.09% | 106.50% | |
67 Neutral | ¥252.06B | 13.21 | 6.57% | 2.79% | 5.06% | -11.45% | |
61 Neutral | $560.00M | ― | -0.96% | ― | 12.19% | 92.40% | |
58 Neutral | $119.79M | ― | -20.57% | ― | 8.09% | 74.06% | |
56 Neutral | $912.05M | ― | -16.81% | ― | 0.23% | 26.92% | |
55 Neutral | $1.36B | 34.48 | -118.80% | 0.99% | 0.33% | 1.50% |
* Consumer Cyclical Sector Average
Performance Comparison
YSG
Yatsen Holding
10.12
6.92
216.25%
VIPS
Vipshop
15.07
2.29
17.92%
WINA
Winmark
374.12
34.43
10.14%
RVLV
Revolve Group
21.55
6.17
40.12%
HNST
Honest Company
5.15
2.26
78.20%
AKA
aka Brands Holding Corp
11.18
-2.66
-19.22%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.