Zepp Health (ZEPP) AI Stock Analysis

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Zepp Health

(NYSE:ZEPP)

Rating:54Neutral

Price Target:

$44.00

▲(17.74% Upside)

Zepp Health's overall stock score is primarily influenced by its challenging financial performance, with significant financial headwinds and negative profitability metrics. The positive sentiment from the earnings call, driven by strong revenue growth and successful product launches, provides some optimism. However, technical analysis suggests caution due to overbought conditions, and valuation metrics remain unattractive due to ongoing losses.

Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$579.46M

Dividend YieldN/A

Average Volume (3M)677.25K

Price to Earnings (P/E)―

Beta (1Y)0.76

Revenue Growth-18.94%

EPS Growth-197.82%

CountryUS

Employees765

SectorTechnology

Sector Strength83

IndustryConsumer Electronics

Share Statistics

EPS (TTM)-0.02

Shares Outstanding7,042,547

10 Day Avg. Volume688,756

30 Day Avg. Volume677,248

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.24

Enterprise Value/Revenue0.32

Enterprise Value/Gross Profit0.81

Enterprise Value/Ebitda-2.42

Forecast

1Y Price Target

$52.12

Price Target Upside39.47% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

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 health and fitness wearable devices, such as smartwatches and fitness trackers. These products are often complemented by subscription-based services that provide users with enhanced features and personalized health insights. Additionally, the company may generate income through partnerships with health organizations and fitness apps, which can help expand its user base and enhance its product offerings. Advertising partnerships and collaborations with other technology firms also contribute to its revenue streams, allowing Zepp Health to leverage existing platforms and reach wider audiences.

Zepp Health Earnings Call Summary

Earnings Call Date:Aug 03, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Nov 24, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment with strong revenue growth, successful product launches, and a promising financial outlook, despite some financial pressures such as an operating loss and decreased cash balance.

Q2-2025 Updates

Positive Updates

Significant Revenue Growth

Zepp Health achieved a remarkable 46% year-over-year increase in revenue to $59.4 million, marking the first quarter of year-over-year revenue growth since Q2 2021.

Product Launch Success

The launch of Helio Strap and Balance 2 smartwatch received high praise, with Helio Strap being recognized as the most accurate heart rate monitoring device by professional influencers.

Strong Market Performance

Amazfit ranked as the second most improved wearable brand in the USA year-over-year, and Prime Day sales in EMEA surged by approximately 60% compared to 2024.

Positive Financial Outlook

The company forecasts revenue growth of 70% to 79% for Q3 2025, indicating continued momentum.

Operational Resilience

Proactive supply chain management and diversified manufacturing presence helped mitigate tariff impacts.

Negative Updates

Operating Loss

Despite improvements, the company reported an adjusted operating loss of $4.9 million for the quarter.

Gross Margin Pressure

Gross margin remained flat at 36.2% compared to Q1 2025, with a slight year-over-year decline due to higher sales of lower-margin products.

Cash Balance Decline

The overall cash balance decreased from $103 million in Q1 2025 to $95 million by the end of Q2 2025.

Company Guidance

During Zepp Health Corporation's second quarter 2025 earnings call, several key financial metrics and strategic initiatives were highlighted. The company reported a 46% year-over-year increase in revenue, reaching $59.4 million, attributed wholly to the Amazfit brand. This marked the first quarter of year-over-year revenue growth since Q2 2021, signaling a positive shift in the company's growth trajectory. Gross margin was reported at 36.2%, slightly down from the previous year due to a higher revenue proportion of lower-margin products. The company continues to focus on cost management, with adjusted operating costs at $26 million, and reported an adjusted operating loss of $4.9 million, improved by 42% compared to the previous year. Zepp also maintained a strong cash position with $95 million as of June 30, 2025, and has refinanced a significant portion of its short-term debt into long-term instruments to enhance capital structure. Looking forward, Zepp Health expects Q3 revenue to range between $72 million and $76 million, representing a 70% to 79% year-over-year growth, supported by strong demand for new product launches and effective supply chain management.

Zepp Health Financial Statement Overview

Summary

Zepp Health faces significant financial challenges with declining revenues, increasing net losses, and negative cash flow. The company has high leverage levels and negative profitability metrics, posing challenges for future growth and sustainability.

Income Statement

Neutral

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

Neutral

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

Negative

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	435.87M	182.60M	2.50B	4.14B	6.25B	6.43B
Gross Profit	172.42M	70.23M	657.78M	803.12M	1.31B	1.33B
EBITDA	-57.54M	-47.34M	-134.39M	-354.09M	93.94M	105.35M
Net Income	-80.70M	-75.73M	-212.12M	-306.66M	95.92M	228.75M
Balance Sheet
Total Assets	518.75M	528.59M	636.53M	5.27B	6.09B	5.90B
Cash, Cash Equivalents and Short-Term Investments	77.43M	92.07M	985.62M	920.95M	1.49B	2.30B
Total Debt	185.71M	182.14M	195.77M	1.68B	1.26B	680.92M
Total Liabilities	286.72M	275.87M	283.22M	2.58B	3.15B	3.17B
Stockholders Equity	232.03M	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

Technical Analysis Sentiment

Positive

Last Price37.37

Price Trends

50DMA

17.09

Positive

100DMA

9.82

Positive

200DMA

6.39

Positive

Market Momentum

MACD

6.99

Positive

RSI

67.39

Neutral

STOCH

50.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Positive. The current price of 37.37 is above the 20-day moving average (MA) of 31.55, above the 50-day MA of 17.09, and above the 200-day MA of 6.39, indicating a bullish trend. The MACD of 6.99 indicates Positive momentum. The RSI at 67.39 is Neutral, neither overbought nor oversold. The STOCH value of 50.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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

The cooperation with the securities regulatory authorities between China and the United States may not be efficient. Q4, 2023

Our growth through acquisitions may be affected by certain PRC regulations. Q4, 2023

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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.62B	7.50	-10.94%	1.87%	8.86%	-10.27%
GPRO	61 Neutral	$289.48M	―	-76.81%	―	-19.83%	73.22%
ZEPP	54 Neutral	$579.46M	―	-28.36%	―	-18.94%	-197.82%
UEIC	52 Neutral	$68.82M	―	-10.48%	―	4.00%	62.67%
KOSS	44 Neutral	$61.04M	―	-2.44%	―	-0.34%	32.41%
VUZI	43 Neutral	$161.64M	―	-113.13%	―	-12.75%	57.64%
WLDS	42 Neutral	$1.11M	―	-167.89%	―	536.59%	-5.05%

* Technology Sector Average

Performance Comparison

ZEPP

Zepp Health

37.37

34.53

1215.85%

GPRO

GoPro

1.70

0.46

37.10%

KOSS

Koss

6.41

-2.45

-27.65%

UEIC

Universal Electronics

5.00

-4.20

-45.65%

VUZI

Vuzix

2.08

1.23

144.71%

WLDS

Wearable Devices Ltd.

1.09

-28.43

-96.31%

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.Date of analysis: Aug 19, 2025