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Yatsen Holding (YSG)
NYSE:YSG
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Yatsen Holding
(NYSE:YSG)
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Rating:47Neutral
Price Target:
$6.50
▲(0.00% Upside)
Yatsen Holding's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. Despite positive earnings call highlights, including revenue growth and improved profitability, the stock's technical indicators and valuation concerns weigh heavily on its score.
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$631.60M
Dividend YieldN/A
Average Volume (3M)329.13K
Price to Earnings (P/E)―
Beta (1Y)0.08
Revenue Growth11.67%
EPS Growth31.55%
CountryUS
Employees1,350
SectorConsumer Defensive
Sector Strength42
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding63,819,630
10 Day Avg. Volume270,806
30 Day Avg. Volume329,131
Financial Highlights & Ratios
PEG Ratio-1.41
Price to Book (P/B)0.96
Price to Sales (P/S)0.87
P/FCF Ratio-9.77
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.20
Enterprise Value/Gross Profit0.25
Enterprise Value/Ebitda-5.42
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Yatsen Holding Business Overview & Revenue Model
Company DescriptionYatsen 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 that includes well-known brands such as Perfect Diary, Little Ondine, and Abby's Choice. Yatsen focuses on utilizing digital marketing and e-commerce platforms to reach consumers, particularly targeting the younger demographic with innovative and trendy products that resonate with modern beauty standards.
How the Company Makes MoneyYatsen Holding generates revenue primarily through the direct sales of its cosmetic and skincare products across various e-commerce platforms and retail channels. The company has established a strong online presence, leveraging social media and influencer marketing to drive brand awareness and consumer engagement. Key revenue streams include product sales from its flagship brand Perfect Diary, which has gained significant market share in China. Additionally, Yatsen benefits from strategic partnerships with major e-commerce platforms like Tmall and JD.com, enhancing its distribution capabilities. Seasonal promotions and collaborations with influencers also contribute to sales spikes, alongside a growing focus on international expansion to tap into new markets.
Yatsen Holding Earnings Call Summary
Earnings Call Date:Aug 21, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 25, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with significant revenue growth and achieved profitability, driven by skincare brand success and improved operating efficiency. However, challenges such as modest industry growth and rising competition were noted.Q2-2025 Updates
Positive Updates
Significant Revenue Growth and Profitability
Total net revenues for the second quarter of 2025 increased by 36.8% year-over-year to RMB 1.09 billion, exceeding previous guidance. Achieved non-GAAP profitability for the third consecutive quarter with a non-GAAP net profit margin of 1.1% compared to a non-GAAP net loss margin of 9.4% in the prior year period.
Skincare Brands Drive Growth
Revenues from skincare brands increased by 78.7% year-over-year, with the combined revenue from Galénic, DR.WU, and Eve Lom growing by 88.1%.
Improved Operating Efficiency
Net loss margin narrowed to 1.8% from 10.8% in the prior year period. Total operating expenses as a percentage of total net revenues decreased to 83.4% from 93.7%.
Successful Product Innovation
Galénic's Brightening Micro Mask ranked #1 among premium single-use masks on Tmall and JD. Perfect Diary introduced new products leveraging biotech technology, supporting growth.
Strong Cash Flow
Net cash generated from operating activities for the second quarter of 2025 was RMB 77.7 million compared to net cash used in operating activities of RMB 148.2 million in the prior year period.
Negative Updates
Slower Growth in Beauty Industry
China's beauty industry saw modest growth with beauty sales increasing by only 2.6% year-over-year, lagging behind the 5.4% growth in total retail sales of consumer goods.
Rising Operating Expenses
Total operating expenses increased by 21.7% year-over-year to RMB 905.9 million, primarily driven by selling and marketing expenses.
Competitive Industry Environment
Increased competition expected, particularly from international brands in the high-end skincare market.
Company Guidance
During the Yatsen Second Quarter 2025 Earnings Conference Call, management provided guidance for the third quarter of 2025, projecting total net revenues to range between RMB 778.6 million and RMB 880.1 million, representing a year-over-year increase of approximately 15% to 30%. The call highlighted Yatsen's successful execution of an R&D-driven strategy, resulting in significant financial improvements. In the second quarter of 2025, total net revenues grew by 36.8% year-over-year to RMB 1.09 billion, with skincare brand revenues increasing by 78.7% and color cosmetics by 8.8%. The company achieved a non-GAAP net profit margin of 1.1%, compared to a non-GAAP net loss margin of 9.4% in the prior year period. Gross profit rose by 39.5% to RMB 850.4 million with a gross margin of 78.3%, while operating expenses as a percentage of total net revenues decreased from 93.7% to 83.4%. The call emphasized ongoing improvements in operational efficiency and strategic investments in R&D to drive future growth and profitability.Yatsen Holding Financial Statement Overview
Summary
Yatsen Holding is facing significant financial challenges with declining revenue and profitability, negative margins, and cash flow issues. Despite a strong equity position, the lack of positive cash flow raises concerns about financial sustainability.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 | 3.75B | 3.39B | 3.41B | 3.71B | 5.84B | 5.23B |
| Gross Profit | 2.92B | 2.62B | 2.51B | 2.52B | 3.90B | 3.36B |
| EBITDA | -135.84M | -307.06M | -355.91M | -589.63M | -1.20B | -2.42B |
| Net Income | -528.27M | -708.17M | -747.76M | -815.37M | -1.55B | -2.69B |
Balance Sheet | ||||||
| Total Assets | 4.04B | 3.97B | 5.01B | 5.86B | 7.27B | 8.31B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30B | 1.36B | 2.10B | 2.65B | 3.20B | 5.73B |
| Total Debt | 179.21M | 148.94M | 113.23M | 132.58M | 421.15M | 527.21M |
| Total Liabilities | 904.35M | 867.85M | 821.24M | 800.13M | 1.26B | 1.44B |
| Stockholders Equity | 3.09B | 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
Negative
6.50
Price Trends
8.59
Negative
9.05
Negative
6.82
Negative
Market Momentum
-0.54
Positive
32.32
Neutral
20.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YSG, the sentiment is Negative. The current price of 6.5 is below the 20-day moving average (MA) of 7.51, below the 50-day MA of 8.59, and below the 200-day MA of 6.82, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 32.32 is Neutral, neither overbought nor oversold. The STOCH value of 20.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $671.40M | 11.46 | 42.13% | 1.76% | 8.10% | 25.56% | |
73 Outperform | $1.40B | 7.78 | 28.94% | ― | -0.38% | 35.78% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $857.34M | 32.64 | 5.65% | ― | 27.53% | ― | |
52 Neutral | $983.62M | ― | -35.37% | ― | -4.90% | 50.77% | |
52 Neutral | $367.19M | 41.46 | 4.09% | ― | 9.62% | ― | |
47 Neutral | $631.60M | -8.55 | -15.44% | ― | 11.67% | 31.55% |
* Consumer Defensive Sector Average
YSG
Yatsen Holding
6.50
2.60
66.67%
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SBH
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746.24%
HNST
Honest Company
2.33
-2.06
-46.92%
RERE
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3.90
1.35
52.94%
Yatsen Holding Corporate Events
Yatsen Holding Reports Strong Q2 2025 Financial Growth
Aug 21, 2025
Yatsen Holding Limited reported a significant financial improvement for the second quarter of 2025, with total net revenues increasing by 36.8% year-over-year to RMB1.09 billion. The company’s skincare brands saw a remarkable 78.7% revenue increase, contributing to a higher gross margin of 78.3%. The net loss narrowed by 77.2% to RMB19.5 million, and non-GAAP net income reached RMB11.5 million. The company’s strategic focus on R&D and efficient operations, alongside the success of the June 18 shopping festival, have been pivotal in returning its color cosmetics brands to growth and maintaining strong performance in skincare.
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.