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Zepp Health Corporation (ZEPP)
:ZEPP
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Zepp Health
(NYSE:ZEPP)
Rating:59Neutral
Price Target:
$25.00
▲(3.91% Upside)
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$345.70M
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)―
Beta (1Y)0.42
Revenue Growth-18.94%
EPS Growth-197.82%
CountryUS
Employees765
SectorTechnology
Sector Strength92
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.02
Shares Outstanding7,042,547
10 Day Avg. Volume452,912
30 Day Avg. Volume1,083,840
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.04
Price to Sales (P/S)0.06
P/FCF Ratio-0.41
Enterprise Value/Market Cap0.40
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit0.81
Enterprise Value/Ebitda-2.42
Forecast
1Y Price Target
$12.32Price Target Upside-48.79% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Zepp Health Business Overview & Revenue Model
Company DescriptionZepp Health (ZEPP) is a global technology company specializing in the development and manufacturing of smart wearable devices. The company operates primarily in the consumer electronics and health technology sectors, offering a range of products including smartwatches, fitness bands, and other health monitoring devices. Zepp Health focuses on integrating advanced biometric and health-tracking technology into its devices to provide users with valuable insights into their health and wellness.
How the Company Makes MoneyZepp Health generates revenue primarily through the sale of its smart wearable devices. The company designs, manufactures, and markets a variety of products under its own brands, such as Amazfit, as well as through partnerships with other consumer electronics brands. Key revenue streams include direct sales through online and offline retail channels, as well as potential licensing of its health-tracking technologies to third parties. Additionally, Zepp Health may leverage partnerships with health and fitness apps to enhance its offerings, thereby driving device sales. The company's earnings are also influenced by market demand for health-focused technology, its ability to innovate and introduce new products, and its strategic relationships within the technology and health sectors.
Zepp Health Earnings Call Summary
Earnings Call Date:Aug 03, 2025
(Q2-2025)
| % Change Since: 765.47%|
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, successful product launches, and a positive financial outlook, suggesting effective strategic shifts and product positioning. However, challenges such as gross margin pressure, operating loss, supply constraints, and a decrease in cash balance were noted. Despite these challenges, the overall sentiment leans towards optimism due to the company's achievements and future growth prospects.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Zepp Health reported a 46% year-over-year revenue increase to $59.4 million, marking the first quarter of year-over-year revenue growth since Q2 2021.
Strong Product Performance
The T-Rex smartwatch and new products like Balance 2 and Helio Strap contributed to robust sales, with the Helio Strap recognized as the most accurate heart rate monitoring device by reviewers.
Successful Prime Day Sales
Zepp Health experienced a 60% increase in Prime Day sales in the EMEA region and ranked as the second most improved wearable brand in the U.S.
Positive Financial Outlook
Revenue guidance for Q3 2025 is set at $72 million to $76 million, representing a 70% to 79% year-over-year growth.
Debt Restructuring and Share Repurchase
The company refinanced a significant portion of its short-term debt into long-term instruments and confirmed its commitment to a share repurchase program.
Negative Updates
Gross Margin Pressure
Gross margin for Q2 2025 was 36.2%, slightly down year-over-year due to a higher revenue proportion of lower-margin entry-level products.
Operating Loss
The company reported an adjusted operating loss of $4.9 million for the quarter, although this was an improvement of 42% compared to the previous year.
Supply Constraints for Helio Strap
The Helio Strap faced supply constraints due to high demand, though the company expects to resolve these by Q3.
Decrease in Cash Balance
Overall cash balance decreased from $103 million in Q1 2025 to $95 million in Q2 2025, influenced by timing and operating performance factors.
Company Guidance
During the second quarter of 2025, Zepp Health Corporation achieved a remarkable 46% year-over-year increase in revenue, totaling $59.4 million, marking the first quarter of year-over-year revenue growth since Q2 2021. The company's gross margin for the quarter was 36.2%, consistent with Q1 2025 but slightly down year-over-year due to a higher revenue proportion from lower-margin products. Zepp Health reduced its adjusted operating loss to $4.9 million, a 42% improvement from the previous year. R&D expenses increased by 4.2% year-over-year to $10.3 million, while selling and marketing expenses rose by 15.1% to $12 million. The company maintained a strong cash position of $95 million as of June 30, 2025. Looking forward, Zepp Health expects Q3 2025 revenue to range between $72 million and $76 million, representing a 70% to 79% growth compared to Q3 2024, driven by strong demand for new and existing product lines.Zepp Health Financial Statement Overview
Summary
Zepp Health faces financial headwinds with declining revenues, increasing net losses, and negative cash flow. The high leverage and negative profitability metrics pose challenges for future growth and sustainability. Strategic initiatives are needed to stabilize revenue, improve operational efficiency, and manage debt.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 | 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
Positive
24.06
Price Trends
6.60
Positive
4.70
Positive
3.84
Positive
Market Momentum
3.18
Negative
82.31
Negative
82.55
Negative
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 24.06 is above the 20-day moving average (MA) of 12.58, above the 50-day MA of 6.60, and above the 200-day MA of 3.84, indicating a bullish trend. The MACD of 3.18 indicates Negative momentum. The RSI at 82.31 is Negative, neither overbought nor oversold. The STOCH value of 82.55 is Negative, 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
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 (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $34.80B | 4.89 | -10.42% | 2.08% | 6.50% | -6.29% | |
59 Neutral | $345.70M | ― | -28.36% | ― | -18.94% | -197.82% | |
54 Neutral | $211.45M | ― | -83.57% | ― | -20.88% | 62.21% | |
49 Neutral | $84.68M | ― | -13.55% | ― | -2.15% | 52.80% | |
46 Neutral | $1.75M | ― | -167.89% | ― | 536.59% | -5.05% | |
44 Neutral | $53.63M | ― | -2.44% | ― | -0.34% | 32.41% | |
44 Neutral | $155.53M | ― | -136.11% | ― | -46.37% | -34.50% |
* Technology Sector Average
Performance Comparison
ZEPP
Zepp Health
24.06
21.78
955.26%
GPRO
GoPro
1.32
0.10
8.20%
KOSS
Koss
5.72
-1.50
-20.78%
UEIC
Universal Electronics
6.43
-4.43
-40.79%
VUZI
Vuzix
2.04
1.04
104.00%
WLDS
Wearable Devices Ltd.
1.70
-27.27
-94.13%
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.