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Yatsen Holding (YSG)
NYSE:YSG
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Yatsen Holding
(NYSE:YSG)
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Select Model
Rating:48Neutral
Price Target:
$4.50
▼(-28.12% Downside)
Action:ReiteratedDate:12/13/25
Yatsen Holding's overall stock score is primarily impacted by its financial challenges, including declining revenue and profitability, and negative cash flow. While the earnings call showed some positive developments, such as strong revenue growth and improved profitability metrics, the technical analysis and valuation remain weak, contributing to a lower overall score.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust demand and effective market strategies, particularly in the skincare segment, supporting long-term expansion.
Skincare Segment Expansion
The rapid growth in the skincare segment strengthens Yatsen's market position and diversifies its revenue base, enhancing resilience against market fluctuations.
Improved Profitability Metrics
Improved profitability metrics reflect better cost management and operational efficiency, which are critical for sustainable financial health.
Negative Factors
Declining Revenue Trend
A historical decline in revenue suggests challenges in maintaining growth momentum, potentially impacting long-term financial stability.
Negative Cash Flow
Negative cash flow raises concerns about liquidity and the ability to fund operations and growth initiatives without external financing.
Increased Operating Expenses
Rising operating expenses can erode profit margins and limit the company's ability to invest in growth, posing a risk to long-term profitability.
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$380.72M
Dividend YieldN/A
Average Volume (3M)266.85K
Price to Earnings (P/E)―
Beta (1Y)0.32
Revenue Growth22.58%
EPS Growth33.18%
CountryUS
Employees1,350
SectorConsumer Defensive
Sector Strength42
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.00
Shares Outstanding63,975,590
10 Day Avg. Volume320,295
30 Day Avg. Volume266,853
Financial Highlights & Ratios
PEG Ratio-1.39
Price to Book (P/B)0.96
Price to Sales (P/S)0.85
P/FCF Ratio-9.77
Enterprise Value/Market Cap5.56
Enterprise Value/Revenue0.52
Enterprise Value/Gross Profit0.66
Enterprise Value/Ebitda-5.58
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.74
Revenue Forecast (FY)$5.23B
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:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 14, 2026
Earnings Call Sentiment Positive
The call presents a materially improved financial and operational picture: robust revenue growth (especially skincare-led), margin expansion, return to non-GAAP profitability, and successful R&D-driven product wins. However, there are notable concerns including elevated selling and marketing spend, a decline in color cosmetics, negative operating cash flow and reduced cash balances. On balance, the positive developments around recovery, margin improvement and strategic execution outweigh the remaining operational and cash-flow challenges.Q4-2025 Updates
Positive Updates
Quarterly Revenue Growth
Total net revenue for Q4 2025 increased 20.1% year-over-year to RMB 1.38 billion (from RMB 1.15 billion), meeting prior guidance and outpacing the industry.
Full Year Revenue Recovery
Total net revenue for FY2025 rose 26.7% year-over-year to RMB 4.3 billion (from RMB 3.39 billion), marking a return to growth after 2024 declines.
Skincare-Led Expansion
Skincare brands drove growth: Q4 skincare revenue grew 51.9% YoY and accounted for 61.1% of Q4 net revenues; FY2025 skincare revenue grew 63.5% YoY and contributed 53% of total net revenues.
Improved Profitability and Margin Trends
Q4 GAAP net income of RMB 3.0 million (net income margin 0.2%) versus a Q4 FY2024 net loss of RMB 378.8 million; FY2025 net loss narrowed to RMB 92.4 million (loss margin 2.2%) from RMB 710.2 million (20.9%). Gross margin improved to 78.2% for FY2025 (from 77.1%).
Non-GAAP Turnaround
FY2025 delivered a non-GAAP net income of RMB 8.4 million (non-GAAP net income margin 0.2%) versus a non-GAAP net loss of RMB 128.2 million in the prior year, representing a return to non-GAAP profitability.
Operating Expense Discipline
Total operating expenses in Q4 decreased 15.6% YoY to RMB 1.08 billion, with operating expenses as a percentage of revenue improving to 78.6% from 111.8% in the prior year period; G&A as % of revenue fell to 5.4% from 8.7%.
Product & Brand Highlights Driven by R&D
R&D-led innovations and recognition: Galenic launches (VB serum and Couture Revelation cream) drove strong sales and awards; Dr. Wu launched PDRN serum and was recognized as Douyin’s annual growth breakthrough brand. R&D spend increased (Q4 R&D +47.5% YoY to RMB 38.8 million) supporting new product pipeline.
No Goodwill Impairment This Year
There was no impairment of goodwill in FY2025 versus a RMB 403.1 million goodwill impairment in the prior year, materially improving operating results.
Positive Near-Term Revenue Guidance
Q1 2026 revenue guidance of RMB 958.6 million to RMB 1.08 billion, representing an expected YoY increase of approximately 15% to 30%.
Negative Updates
Color Cosmetics Softness
Color Cosmetics revenue declined 9.1% in Q4 YoY and grew only 1.9% for FY2025, indicating slower recovery/weakness in this segment compared with skincare.
High Selling and Marketing Spend
Q4 selling & marketing expenses rose to RMB 893.8 million from RMB 690.6 million, increasing to 64.8% of revenue (from 60.1%), driven by higher traffic acquisition costs amid intensified competition (Double 11).
Decline in Non-GAAP Quarterly Profitability
Q4 non-GAAP net income decreased to RMB 41.2 million from RMB 107.0 million YoY, and non-GAAP net income margin fell to 3.0% from 9.3%, signaling pressure on shorter-term profitability despite GAAP improvements.
Negative Operating Cash Flow and Lower Cash Balances
Net cash used in operating activities was RMB 69.4 million in Q4 and RMB 94.7 million for FY2025 versus net cash generated of RMB 202.2 million (Q4 prior year) and RMB 243.7 million (FY prior year). Cash, restricted cash and short-term investments declined to RMB 1.05 billion from RMB 1.36 billion year-over-year.
Continued GAAP Loss on Full Year Basis
Despite large improvements, FY2025 still reported a GAAP net loss of RMB 92.4 million (loss margin 2.2%), indicating remaining path to sustained GAAP profitability.
Competitive Pressure and Marketing Intensity
Management cited intensified competition during major shopping festivals leading to higher traffic acquisition costs and increased marketing intensity, which pressured marketing efficiency and elevated S&M expense ratios.
Company Guidance
For the first quarter of 2026, management guided total net revenues of RMB 958.6 million to RMB 1.08 billion, implying year‑over‑year growth of approximately 15% to 30%; they noted these forecasts reflect their current and preliminary views on market and operational conditions and are subject to change.Yatsen Holding Financial Statement Overview
Summary
Yatsen Holding faces 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 | 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
Negative
6.26
Price Trends
4.22
Negative
5.42
Negative
7.08
Negative
Market Momentum
<0.01
Negative
43.61
Neutral
45.53
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 above the 20-day moving average (MA) of 4.15, above the 50-day MA of 4.22, and below the 200-day MA of 7.08, indicating a bearish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 45.53 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.27B | 35.90 | 7.42% | ― | 27.84% | ― | |
70 Outperform | $605.09M | 11.18 | 41.18% | 1.52% | 6.16% | 15.74% | |
64 Neutral | $1.57B | 9.20 | 24.38% | ― | -0.42% | 31.64% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $295.81M | -18.69 | -9.12% | ― | 3.89% | ― | |
51 Neutral | $626.96M | -16.09 | -35.37% | ― | -4.90% | 50.77% | |
48 Neutral | $380.72M | -5.67 | -13.99% | ― | 22.58% | 33.18% |
* Consumer Defensive Sector Average
YSG
Yatsen Holding
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Yatsen Holding Corporate Events
Yatsen Reports Strong Q3 2025 Revenue Growth Amid Skincare Surge
Nov 17, 2025
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.
The most recent analyst rating on (YSG) stock is a Hold with a $6.50 price target. To see the full list of analyst forecasts on Yatsen Holding stock, see the YSG Stock Forecast page.
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.