Zepp Health (ZEPP) AI Stock Analysis

• Market Cap: $532.62M
• Dividend Yield: N/A
• Average Volume (3M): 283.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: 13.27%
• EPS Growth: -66.48%
• Country: US
• Employees: 765
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): -0.04
• Shares Outstanding: 7,042,547
• 10 Day Avg. Volume: 277,433
• 30 Day Avg. Volume: 283,297
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.04
• Price to Sales (P/S): 0.06
• P/FCF Ratio: -0.61
• Enterprise Value/Market Cap: 0.26
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 0.22
• Enterprise Value/Ebitda: -0.47
• 1Y Price Target: $60.23
• Price Target Upside: 54.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $22.50 ▼(-42.16% Downside)

Zepp Health's overall stock score reflects significant financial challenges, including declining revenues and negative cash flow, which weigh heavily on its prospects. Technical indicators also suggest bearish momentum. However, the recent earnings call provided some optimism with strong revenue growth and successful product launches, slightly offsetting the negative financial and technical outlook.

Zepp Health Business Overview & Revenue Model

Company Description

Zepp Health (ZEPP) is a leading health technology company focused on empowering individuals to achieve their wellness and fitness goals through innovative wearable devices and health management solutions. The company operates primarily in the sectors of consumer electronics and health technology, offering a range of products including smartwatches, fitness trackers, and health monitoring applications. Zepp Health's core offerings are designed to provide users with comprehensive insights into their health metrics, promoting a proactive approach to personal health management.

How the Company Makes Money

Zepp Health generates revenue through multiple channels, primarily by selling its wearable devices, such as smartwatches and fitness trackers, directly to consumers through online and retail partnerships. Additionally, the company monetizes its health management services by offering subscription-based access to premium features within its mobile applications, which enhance user experience and provide advanced health analytics. Significant partnerships with fitness brands and health organizations also contribute to its earnings by expanding market reach and enhancing product offerings. Furthermore, Zepp Health leverages data analytics to refine its products and services, creating additional value that can lead to increased customer loyalty and repeat purchases.

Zepp Health Financial Statement Overview

Summary

Zepp Health is facing significant financial challenges, including declining revenues, increasing net losses, and negative cash flow. The company's high leverage and negative profitability metrics pose risks to future growth and sustainability. Strategic initiatives are needed to stabilize revenue and improve financial health.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.68B	1.33B	2.50B	4.22B	6.17B	6.08B
Gross Profit	624.20M	512.88M	653.70M	817.22M	1.29B	1.26B
EBITDA	-294.14M	-345.66M	-142.88M	-261.43M	200.80M	276.76M
Net Income	-479.07M	-554.13M	-220.49M	-293.37M	136.02M	216.27M
Balance Sheet
Total Assets	4.17B	3.86B	4.50B	5.19B	6.08B	5.89B
Cash, Cash Equivalents and Short-Term Investments	446.69M	815.51M	1.03B	993.20M	1.53B	2.29B
Total Debt	784.90M	1.33B	1.39B	1.70B	1.35B	727.44M
Total Liabilities	2.56B	2.01B	2.00B	2.55B	3.15B	3.17B
Stockholders Equity	1.61B	1.84B	2.49B	2.63B	2.92B	2.72B
Cash Flow
Free Cash Flow	0.00	-25.88M	40.92M	-118.59M	-377.22M	71.79M
Operating Cash Flow	0.00	-24.39M	42.60M	-117.11M	-331.77M	150.78M
Investing Cash Flow	0.00	-1.58M	7.73M	-6.24M	-1.06B	-195.59M
Financing Cash Flow	0.00	477.00K	-41.68M	42.37M	646.39M	531.78M

Zepp Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 38.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Negative. The current price of 38.9 is above the 20-day moving average (MA) of 32.75, below the 50-day MA of 43.33, and above the 200-day MA of 18.54, indicating a neutral trend. The MACD of -6.16 indicates Positive momentum. The RSI at 29.57 is Positive, neither overbought nor oversold. The STOCH value of 21.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZEPP.

Zepp Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KOSS	49 Neutral	$43.59M	-198.71	-0.69%	―	11.58%	81.08%
ZEPP	49 Neutral	$532.62M	-7.68	-24.39%	―	13.27%	-66.48%
UEIC	47 Neutral	$37.56M	―	-14.35%	―	2.35%	18.83%
VUZI	43 Neutral	$174.68M	-4.45	-96.37%	―	-4.31%	59.68%
WLDS	41 Neutral	$13.96M	-0.27	-268.12%	―	-9.05%	77.41%
GPRO	41 Neutral	$248.42M	―	-91.95%	―	-27.37%	70.46%

Zepp Health Corporate Events

Zepp Health Achieves Strong Q3 Growth with Amazfit T-Rex 3 Pro Launch

Zepp Health Corporation reported a significant 78.5% year-over-year revenue increase for the third quarter of 2025, reaching $75.8 million, driven by strong demand for its diversified product portfolio, including the successful launch of the Amazfit T-Rex 3 Pro. The company achieved a key milestone by reaching adjusted operating income breakeven, marking progress towards sustained profitability. With a strategic focus on product innovation and brand visibility, Zepp Health expanded its Amazfit Athletes team and enhanced its software ecosystem, positioning itself for continued growth in the smart wearables market. The company anticipates further revenue growth in the fourth quarter, projecting a 38% to 45% increase year-over-year, supported by a favorable product mix and strong market execution.