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Zepp Health (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
Rating:55Neutral
Price Target:
$2.50
▲(2.46%Upside)
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.06M
Dividend YieldN/A
Average Volume (3M)28.07K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-39.27%
EPS Growth-211.36%
CountryUS
Employees765
SectorTechnology
Sector Strength86
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.08
Shares Outstanding7,042,547
10 Day Avg. Volume17,482
30 Day Avg. Volume28,072
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.92
Price to Sales (P/S)0.00
P/FCF Ratio-0.45
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$12.32Price Target Upside404.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Zepp Health Business Overview & Revenue Model
Company DescriptionZepp Health Corporation, together with its subsidiaries, develops, manufactures, and sells smart wearable technological devices in the People's Republic of China. It operates through two segments, Xiaomi Wearable Products, and Self-Branded Products and Others. The company offers smart bands, watches, and scales; and smart hearable products, home treadmill, sportswear, home appliances, and smart watch accessories under the Xiaomi and Amazfit brands. It provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People's Republic of China.
How the Company Makes MoneyZepp Health generates revenue primarily through the sale of its smart wearable devices, such as smartwatches and fitness bands, which are marketed under various brand names including Amazfit and Zepp. The company also earns money by providing value-added services, including health data analytics and cloud-based health management solutions, which are often offered through subscription models. Additionally, Zepp Health benefits from partnerships with healthcare providers and technology companies to integrate its health monitoring solutions into broader health ecosystems, further contributing to its revenue streams.
Zepp Health Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: -12.23%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call reveals a positive sentiment due to the significant growth in Amazfit revenue, successful product launches, and improved market share. However, challenges remain with operating profit pressure and increased operating expenses. The company plans to mitigate tariff impacts and anticipates substantial growth in the upcoming quarters.Q1-2025 Updates
Positive Updates
Amazfit Revenue Growth
Amazfit revenue saw a 10% year-over-year growth for the first time after two years of transformation.
New Product Launch Success
The launch of Amazfit Active 2 and Bip 6 received positive reviews and strong market reception, significantly increasing sales momentum.
Market Share Expansion
In Italy, Amazfit's market share of no SIM smartwatch unit sales reached 23.3% in March 2025, ranking second after Apple.
Improved Gross Margin
Achieved a gross margin of 37.3% in Q1 2025, higher than both Q4 2024 and Q1 2024, driven by new product launches.
Successful Cost Management
Despite a net loss, the cash balance only declined by roughly $6 million due to enhanced working capital management.
Upcoming Revenue Growth Forecast
Expecting significant year-over-year revenue growth of 23% to 35% in Q2 2025.
Negative Updates
Operating Profit Pressure
Fixed operating expenses were not fully absorbed by increased sales, putting pressure on operating profit.
Increased Operating Expenses
Operating expenses increased to $31.5 million in Q1 2025, mainly due to higher R&D and marketing expenses.
Tariff Impact
Tariffs on China-made products reduced gross margin by approximately 1 percentage point, with an expected full-year tariff impact of $2 million to $3 million.
Foreign Exchange Headwinds
Faced approximately $1 million in foreign exchange headwinds during the quarter.
Company Guidance
During Zepp Health Corporation's first quarter 2025 earnings call, the company provided guidance indicating a positive outlook for the year. Amazfit revenue experienced a 10% year-over-year growth, marking a significant milestone after two years of transformation. The U.S. market is vital, contributing 15% of revenue, with tariffs currently having a minimal impact. The company aims to achieve a 23% to 35% year-over-year increase in revenue for the second quarter, driven by new product launches and strategic partnerships. Despite first-quarter fixed operating expenses not being fully absorbed by increased sales, Zepp expects improvements in profitability in upcoming quarters. The company's gross margin was 37.3%, with anticipation for further expansion throughout 2025. Operating expenses are targeted to be between $25 million and $27 million per quarter, with an emphasis on cost management while continuing to invest in R&D and marketing. Zepp Health remains optimistic about achieving its first year-over-year growth in overall sales since 2021, guided by product innovation, strengthened partnerships, and an expanding global presence.Zepp Health Financial Statement Overview
Summary
Zepp Health faces significant financial headwinds, with declining revenues, increasing net losses, and negative cash flow. High leverage levels and negative profitability metrics pose challenges for future growth and sustainability.Income Statement
Zepp Health's income statement indicates a challenging financial period. The company has experienced negative revenue growth, with revenue declining significantly from 2020 to 2024. The gross profit margin has decreased over time, and the company has faced increasing net losses, as evidenced by the negative net profit margin. Additionally, EBIT and EBITDA margins have been negative, highlighting operational inefficiencies and financial struggles.45
Neutral
Balance Sheet
The balance sheet shows a mixed picture. While the company has a reasonable equity ratio, indicating some level of financial stability, its debt-to-equity ratio has increased, reflecting higher leverage and potential financial risk. The return on equity (ROE) is negative due to net losses, which diminishes the attractiveness to equity investors. The company's equity has been declining, which could be a concern for long-term solvency.55
Neutral
Cash Flow
Zepp Health's cash flow statement reveals significant challenges. Operating cash flow has been negative in recent periods, and free cash flow has consistently been negative, indicating cash burn and reliance on external financing. The free cash flow to net income ratio is unfavorable due to ongoing net losses. These factors suggest liquidity issues and the need for strategic financial management to improve cash generation.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.22B | 182.60M | 2.50B | 4.14B | 6.25B | 6.43B |
| Gross Profit | 450.12M | 70.23M | 657.78M | 803.12M | 1.31B | 1.33B |
| EBITDA | -169.22M | -47.34M | -134.39M | -354.09M | 93.94M | 105.35M |
| Net Income | -205.96M | -75.73M | -212.12M | -306.66M | 95.92M | 228.75M |
Balance Sheet | ||||||
| Total Assets | 588.79M | 528.59M | 636.53M | 5.27B | 6.09B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 119.07M | 92.07M | 985.62M | 920.95M | 1.49B | 2.30B |
| Total Debt | 198.06M | 182.14M | 195.77M | 1.68B | 1.26B | 680.92M |
| Total Liabilities | 273.25M | 275.87M | 283.22M | 2.58B | 3.15B | 3.17B |
| Stockholders Equity | 314.17M | 251.59M | 2.49B | 2.67B | 2.92B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -25.88M | 40.92M | -5.46B | -285.52M | 72.53M |
| Operating Cash Flow | 0.00 | -24.39M | 42.60M | -5.40B | -232.44M | 157.30M |
| Investing Cash Flow | 0.00 | -1.58M | 7.73M | -289.55M | -1.07B | -206.88M |
| Financing Cash Flow | 0.00 | 477.00K | -41.68M | 1.98B | 551.08M | 564.67M |
Zepp Health Technical Analysis
Neutral
2.44
Price Trends
2.55
Negative
2.74
Negative
2.95
Negative
Market Momentum
-0.05
Negative
48.14
Neutral
51.85
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Neutral. The current price of 2.44 is above the 20-day moving average (MA) of 2.42, below the 50-day MA of 2.55, and below the 200-day MA of 2.95, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 51.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZEPP.
Zepp Health Risk Analysis
Zepp Health disclosed 72 risk factors in its most recent earnings report. Zepp Health 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 3 New Risks
1.
The cooperation with the securities regulatory authorities between China and the United States may not be efficient. Q4, 2023
2.
Our growth through acquisitions may be affected by certain PRC regulations. Q4, 2023
3.
If we are deemed to be an investment company under the Investment Company Act of 1940, applicable restrictions could have a material adverse effect on our business and the price of our ADSs and Class A ordinary shares. Q4, 2023
Zepp Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
57 Neutral | $212.72M | ― | -136.11% | ― | -46.37% | -34.50% | |
56 Neutral | $90.61M | ― | -13.55% | ― | -2.15% | 52.80% | |
55 Neutral | $137.68M | ― | -83.57% | ― | -20.88% | 62.21% | |
55 Neutral | $35.06M | ― | -28.57% | ― | -39.27% | -211.36% | |
49 Neutral | C$2.83B | 2.66 | -80.91% | 2.86% | 6.54% | -19.28% | |
43 Neutral | $1.46M | ― | -167.89% | ― | 536.59% | -5.05% | |
42 Neutral | $46.88M | ― | -2.44% | ― | -0.34% | 32.41% |
* Technology Sector Average
Performance Comparison
ZEPP
Zepp Health
2.44
0.04
1.67%
GPRO
GoPro
0.85
-0.46
-35.11%
KOSS
Koss
4.96
0.76
18.10%
UEIC
Universal Electronics
6.88
-4.50
-39.54%
VUZI
Vuzix
2.83
1.41
99.30%
WLDS
Wearable Devices Ltd.
1.60
-43.50
-96.45%
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.