Yatsen Holding (YSG) AI Stock Analysis

• Market Cap: $588.47M
• Dividend Yield: N/A
• Average Volume (3M): 248.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: 22.58%
• EPS Growth: 33.18%
• Country: US
• Employees: 1,350
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 63,819,630
• 10 Day Avg. Volume: 337,488
• 30 Day Avg. Volume: 248,917
• 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 Cap: 1.21
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 0.22
• Enterprise Value/Ebitda: -1.88
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.14
• Revenue Forecast (FY): $4.38B

• Rating: 48 Neutral
• Price Target: $6.00 ▼(-4.15% Downside)

Yatsen Holding's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability, and negative cash flow. The technical analysis also indicates a bearish trend. However, the recent earnings call provided a positive outlook with strong revenue growth and improved profitability metrics, which slightly offsets the negative factors.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong market demand and effective sales strategies, particularly in the skincare segment, positioning the company for sustained expansion.

Skincare Segment Expansion

The rapid growth of the skincare segment highlights successful product innovation and market penetration, enhancing the company's competitive edge in a high-demand category.

Operational Efficiency Gains

Improved operational efficiency reflects better cost management and resource allocation, which can lead to enhanced profitability and financial health over the long term.

Negative Factors

Declining Revenue Trend

The historical decline in revenue raises concerns about the company's ability to maintain growth and market relevance, potentially impacting long-term sustainability.

Negative Cash Flow

Persistent negative cash flow indicates challenges in generating sufficient cash from operations, which could limit investment in growth initiatives and strain financial resources.

Rising Operating Expenses

The increase in operating expenses, despite revenue growth, suggests potential inefficiencies and cost pressures that could hinder profitability improvements.

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 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 Money

Yatsen 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 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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.07B	3.44B	3.41B	3.77B	5.76B	4.95B
Gross Profit	3.18B	2.65B	2.51B	2.56B	3.85B	3.18B
EBITDA	-379.03M	-501.64M	-560.08M	-500.55M	-1.11B	-2.29B
Net Income	-478.50M	-718.21M	-744.69M	-829.69M	-1.52B	-2.54B
Balance Sheet
Total Assets	4.02B	3.97B	5.01B	5.86B	7.27B	8.31B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.36B	2.06B	2.59B	3.20B	5.73B
Total Debt	179.97M	148.94M	113.23M	132.58M	421.15M	527.21M
Total Liabilities	1.01B	867.85M	821.24M	800.13M	1.26B	1.44B
Stockholders Equity	3.02B	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

• Technical Analysis Sentiment: Negative
• Last Price: 6.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.26 is below the 20-day moving average (MA) of 6.46, below the 50-day MA of 7.62, and below the 200-day MA of 7.03, indicating a bearish trend. The MACD of -0.42 indicates Negative momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 64.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YSG.

Yatsen Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBW	73 Outperform	$683.35M	11.66	42.13%	1.69%	8.10%	25.56%
SBH	73 Outperform	$1.60B	8.69	27.54%	―	-0.42%	31.64%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
RERE	61 Neutral	$982.64M	27.71	7.42%	―	27.84%	―
HNST	55 Neutral	$288.42M	39.64	4.36%	―	3.89%	―
YSG	48 Neutral	$588.47M	―	-13.99%	―	22.58%	33.18%
TDUP	45 Neutral	$938.57M	―	-35.37%	―	-4.90%	50.77%

Yatsen Holding Corporate Events

Yatsen Reports Strong Q3 2025 Revenue Growth Amid Skincare Surge

Yatsen Holding Limited announced its financial results for the third quarter of 2025, reporting a significant 47.5% increase in total net revenues to RMB998.4 million compared to the previous year. The company’s skincare brands saw an impressive 83.2% revenue growth, contributing to a higher gross margin of 78.2%. Despite a net loss of RMB70.4 million, this figure represents a 41.9% improvement from the prior year. The results highlight Yatsen’s strategic focus on brand innovation and operational efficiency, positioning it well for future growth, particularly in light of upcoming events like the Double 11 shopping festival.