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Yatsen Holding (YSG)
NYSE:YSG
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Yatsen Holding (YSG) AI Stock Analysis

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YSG

Yatsen Holding

(NYSE:YSG)

Rating:59Neutral
Price Target:
$10.00
▲(13.25%Upside)
Yatsen Holding's improved earnings call performance and technical momentum are significant positives. However, the company's financial struggles and valuation concerns weigh heavily on the overall score. Strategic changes are needed to address financial sustainability.

Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)

Yatsen Holding Business Overview & Revenue Model

Company DescriptionYatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby's Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People's Republic of China. It offers color cosmetics, eye makeup, lip makeup, face makeup, skincare, and nail products; and makeup tools and accessories, including brush sets, cotton cosmetic pads, mirrors, and makeup sponges. The company also provides kits; and other products, such as perfumes and cross-over products comprising beauty devices and colored contact lenses. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.
How the Company Makes MoneyYatsen Holding makes money through the sales of its beauty and personal care products. The company's primary revenue streams include direct-to-consumer sales via e-commerce platforms and physical retail stores. Yatsen utilizes online channels such as its own websites, third-party platforms like Tmall and JD.com, and social media to engage with consumers and drive online sales. Additionally, the company enhances its earnings by maintaining strong brand recognition and loyalty through marketing campaigns, influencer partnerships, and innovative product launches. Strategic partnerships with various online and offline distributors also contribute to expanding its market reach and boosting sales revenue.

Yatsen Holding Earnings Call Summary

Earnings Call Date:May 16, 2025
(Q1-2025)
|
% Change Since: 67.23%|
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 faces significant financial challenges with declining revenue and profitability, negative margins, and cash flow issues. Although it maintains a strong equity position, the lack of positive cash flow is concerning.
Income Statement
40
Negative
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.
Balance Sheet
55
Neutral
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.
Cash Flow
35
Negative
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.39B3.41B3.71B5.84B5.23B
Gross Profit2.62B2.51B2.52B3.90B3.36B
EBITDA-307.06M-355.91M-589.63M-1.20B-2.42B
Net Income-708.17M-747.76M-821.33M-1.55B-2.69B
Balance Sheet
Total Assets3.97B5.01B5.86B7.27B8.31B
Cash, Cash Equivalents and Short-Term Investments1.36B2.10B2.59B3.14B5.73B
Total Debt148.94M113.23M132.58M421.15M527.21M
Total Liabilities867.85M821.24M800.13M1.26B1.44B
Stockholders Equity3.06B4.14B4.72B5.66B6.85B
Cash Flow
Free Cash Flow-300.69M-151.41M76.88M-1.19B-1.37B
Operating Cash Flow-243.67M-107.44M136.21M-1.02B-983.37M
Investing Cash Flow592.12M-260.49M-1.16B-1.48B-508.83M
Financing Cash Flow-394.23M-342.45M-654.45M-1.71M6.68B

Yatsen Holding Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price8.83
Price Trends
50DMA
8.11
Positive
100DMA
6.27
Positive
200DMA
5.07
Positive
Market Momentum
MACD
0.18
Positive
RSI
39.84
Neutral
STOCH
8.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YSG, the sentiment is Neutral. The current price of 8.83 is below the 20-day moving average (MA) of 9.72, above the 50-day MA of 8.11, and above the 200-day MA of 5.07, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 39.84 is Neutral, neither overbought nor oversold. The STOCH value of 8.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$8.31B8.5719.00%0.24%-5.90%-11.16%
75
Outperform
$1.52B30.9911.97%9.09%106.50%
64
Neutral
£1.74B10.516.12%256.36%0.55%-33.64%
63
Neutral
$505.99M-0.96%12.19%92.40%
61
Neutral
$1.35B33.99-118.80%2.91%0.98%1.84%
59
Neutral
$814.30M-16.81%0.23%26.92%
52
Neutral
$119.47M-20.57%8.09%74.06%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
YSG
Yatsen Holding
8.21
4.41
116.05%
VIPS
Vipshop
15.98
3.00
23.11%
WINA
Winmark
383.20
-10.83
-2.75%
RVLV
Revolve Group
21.78
3.32
17.98%
HNST
Honest Company
4.95
1.07
27.58%
AKA
aka Brands Holding Corp
11.01
-5.38
-32.82%
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.Date of analysis: Jul 23, 2025