Yatsen Holding (YSG)
NYSE:YSG
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Yatsen Holding
(NYSE:YSG)
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Rating:52Neutral
Price Target:
$3.50
▼(-44.09% Downside)
Action:Reiterated
Date:05/29/26
The score is driven primarily by mixed financial quality: a strong low-leverage balance sheet and improving margins are offset by persistently negative operating/free cash flow. The earnings call reinforces this tension—solid top-line momentum and guidance, but sharply higher expenses, wider losses, and negative operating cash flow. Technicals show a short-term rebound, while valuation remains constrained by losses and a negative P/E.
Positive Factors
Low-leverage balance sheet
Yatsen's very low debt-to-equity (~0.06 in 2025) and sizable equity base provide durable financial flexibility, lowering refinancing and downturn risk. This conservative capital structure supports continued investment in product development and expansion without immediate solvency pressure.
Negative Factors
Negative operating and free cash flow
Persistent negative operating and free cash flow in 2024–2025 means the business still relies on external financing to fund growth and investments. Even with low debt, continued negative cash generation raises funding risk and could force dilution or spending cuts if cash turns positive only slowly.
Read all positive and negative factors
Positive Factors
Negative Factors
Low-leverage balance sheet
Yatsen's very low debt-to-equity (~0.06 in 2025) and sizable equity base provide durable financial flexibility, lowering refinancing and downturn risk. This conservative capital structure supports continued investment in product development and expansion without immediate solvency pressure.
Read all positive factors
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$321.95M
Dividend YieldN/A
Average Volume (3M)266.85K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth32.03%
EPS Growth76.28%
CountryUS
Employees1,350
SectorConsumer Defensive
Sector Strength42
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.87
Shares Outstanding63,836,758
10 Day Avg. Volume320,295
30 Day Avg. Volume266,853
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)0.84
Price to Sales (P/S)0.61
P/FCF Ratio-18.30
Enterprise Value/Market Cap4.51
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit0.43
Enterprise Value/Ebitda-18.05
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.56
Revenue Forecast (FY)$5.24B
Yatsen Holding Business Overview & Revenue Model
Company Description
Yatsen Holding Limited (YSG) is a leading beauty and personal care company based in China, specializing in the development, marketing, and sale of skincare and makeup products. The company operates primarily in the beauty sector, with a portfolio ...
How the Company Makes Money
Yatsen primarily makes money by selling beauty products (including color cosmetics and skincare) under its owned brands. Revenue is generated when consumers purchase products through (1) online channels—such as major third-party e-commerce marketp...
Yatsen Holding Earnings Call Summary
Earnings Call Date:May 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 20, 2026
Earnings Call Sentiment Negative
The call presented a mix of strong top-line momentum—driven by a 58.5% surge in skincare revenues, product innovation and increased R&D investment—and significant profitability and cash-flow challenges caused by sharply higher operating and marketing expenses. While management highlighted strategic initiatives, investor-backed financing, and operational efficiency gains in fulfillment, the company reported materially wider operating and net losses, a drawdown in cash, and a moderation in near-term revenue growth guidance. The balance of robust revenue/investment achievements against deteriorating margins, negative cash flow from operations, and the shift from non-GAAP profitability to a loss leads to concern about near-term financial health despite promising strategic positioning.Positive Updates
Top-line Growth Met Guidance
Total net revenues increased 22.5% year-over-year to 1.02 billion (management noted all figures are in renminbi), meeting the company's guidance range for the period.
Negative Updates
Sharp Increase in Selling & Marketing Spend
Selling and marketing expenses rose to 737.2 million and increased to 72.2% of total net revenues from 66.4% a year ago, driven by investments in brand building and higher traffic acquisition costs on the Douyin platform, pressuring profitability.
Read all updates
Q1-2026 Updates
Positive
Negative
Top-line Growth Met Guidance
Total net revenues increased 22.5% year-over-year to 1.02 billion (management noted all figures are in renminbi), meeting the company's guidance range for the period.
Read all positive updates
Company Guidance
For Q2 2026 the company guided total net revenues of $1.2 billion to $1.3 billion, implying year‑over‑year growth of roughly 10%–20% (guidance is preliminary and subject to change); by comparison, Q1 2026 net revenues were $1.02 billion (+22.5% YoY), gross profit was $819.2 million (+24.3%) with a gross margin of 80.2% (vs. 79.1% prior year), total operating expenses were $918.1 million (89.9% of revenues, +32.5%), fulfillment $61.1 million (6.0% of revenues), selling & marketing $737.2 million (72.2%), G&A $80.3 million (7.9%), R&D $39.4 million (3.9%), operating loss $99.0 million (9.7% margin), non‑GAAP operating loss $84.6 million (8.3%), net loss $61.9 million (6.1%), non‑GAAP net loss $57.3 million (5.6%), cash, restricted cash and short‑term investments of $934.2 million (as of Mar 31, 2026) and net cash used in operating activities of $90.0 million in Q1.Yatsen Holding Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
76
Positive
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.18B | 3.44B | 3.41B | 3.77B | 5.76B |
| Gross Profit | 3.31B | 2.65B | 2.51B | 2.56B | 3.85B |
| EBITDA | -180.73M | -501.64M | -560.08M | -500.55M | -1.11B |
| Net Income | -78.66M | -718.21M | -744.69M | -829.69M | -1.52B |
Balance Sheet | |||||
| Total Assets | 3.85B | 3.97B | 5.01B | 5.86B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.05B | 1.36B | 2.06B | 2.59B | 3.20B |
| Total Debt | 176.70M | 148.94M | 113.23M | 132.58M | 421.15M |
| Total Liabilities | 846.88M | 867.85M | 821.24M | 800.13M | 1.26B |
| Stockholders Equity | 3.01B | 3.06B | 4.14B | 4.72B | 5.66B |
Cash Flow | |||||
| Free Cash Flow | -138.46M | -300.69M | -151.41M | 76.88M | -1.19B |
| Operating Cash Flow | -94.66M | -243.67M | -107.44M | 136.21M | -1.02B |
| Investing Cash Flow | 246.79M | 592.12M | -260.49M | -1.16B | -1.48B |
| Financing Cash Flow | -151.44M | -394.23M | -342.45M | -654.45M | -1.71M |
Yatsen Holding Technical Analysis
Positive
6.26
Price Trends
3.00
Positive
3.57
Negative
5.50
Negative
Market Momentum
-0.03
Negative
57.36
Neutral
88.11
Negative
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 6.26 is above the 20-day moving average (MA) of 2.76, above the 50-day MA of 3.00, and above the 200-day MA of 5.50, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 88.11 is Negative, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $489.38M | 8.49 | 35.60% | 1.52% | 3.26% | 2.53% | |
63 Neutral | $1.02B | 26.61 | 8.02% | ― | 32.51% | 241.09% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $1.26B | 6.98 | 22.86% | ― | 0.77% | 2.73% | |
60 Neutral | $408.39M | -20.80 | -10.61% | ― | -9.56% | -862.29% | |
53 Neutral | $615.53M | -27.65 | -36.11% | ― | 10.25% | 70.25% | |
52 Neutral | $321.95M | -14.74 | -2.64% | ― | 32.03% | 76.28% |
* Consumer Defensive Sector Average
YSG
Yatsen Holding
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Yatsen Holding Corporate Events
Yatsen Posts Strong Skincare-Led Q1 2026 Revenue Growth but Wider Loss, Raises $120 Million via Convertible Notes
May 26, 2026
On May 26, 2026, Yatsen reported unaudited results for the quarter ended March 31, 2026, showing total net revenues up 22.5% year on year to RMB1.02 billion, driven by a 58.5% surge in skincare revenues that lifted skincare’s share of sales ...
Yatsen Secures Hillhouse Backing as It Closes First Tranche of US$120 Million Private Placement
May 21, 2026
On May 21, 2026, Yatsen Holding Limited completed the first tranche of its previously announced private placement of RMB-denominated convertible senior notes and warrants, with the total transaction size remaining equivalent to about US$120 millio...
Yatsen Raises US$120 Million via Convertible Notes and Warrants in Trustar-Led Deal
Mar 11, 2026
On March 11, 2026, Yatsen Holding Limited announced it had entered into a definitive agreement for a private placement of approximately US$120 million equivalent in RMB-denominated convertible senior notes, to be issued in two equal tranches, toge...
Yatsen Revamps Board and Committees After Director Resignation
Mar 2, 2026
Yatsen Holding Limited announced changes to its board composition following the resignation of independent director Sidney Xuande Huang for personal reasons, effective February 28, 2026. The company stated that Huang’s departure was not due ...
Yatsen Returns to Profit in Q4 as Skincare-Led Growth Sharpens 2025 Turnaround
Mar 2, 2026
On March 2, 2026, Yatsen Holding reported unaudited financial results for the fourth quarter and full year ended December 31, 2025, showing a strong top-line recovery led by its skincare portfolio. Total net revenues rose 20.1% year-on-year in the...
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.