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Yatsen Holding
(NYSE:YSG)
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Rating:49Neutral
Price Target:
$2.50
▼(-14.97% Downside)
Action:Reiterated
Date:09/06/26
Overall score reflects improving profitability trends and a low-leverage balance sheet, but is held back by persistently negative cash flow and a weak technical trend. Earnings-call guidance and widening near-term losses add caution, while valuation lacks support due to negative earnings and no dividend.
Positive Factors
Skincare-led growth
Skincare’s strong growth and majority share of revenue show meaningful portfolio migration toward a larger business pillar. If sustained, this shift can reduce dependence on volatile color cosmetics and provide a clearer platform for product innovation, brand investment, and future sales expansion.
Negative Factors
Persistently negative cash generation
Negative operating and free cash flow indicate that improving reported margins have not yet translated into self-funded operations. If this persists, Yatsen may have less flexibility to invest in brands and products, making execution more dependent on its cash reserves and future operating improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Skincare-led growth
Skincare’s strong growth and majority share of revenue show meaningful portfolio migration toward a larger business pillar. If sustained, this shift can reduce dependence on volatile color cosmetics and provide a clearer platform for product innovation, brand investment, and future sales expansion.
Read all positive factors
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$256.08M
Dividend YieldN/A
Average Volume (3M)82.68K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth25.10%
EPS Growth59.14%
CountryUS
Employees1,623
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-2.17
Shares Outstanding63,836,758
10 Day Avg. Volume76,629
30 Day Avg. Volume82,681
Financial Highlights & Ratios
PEG Ratio0.37
Price to Book (P/B)0.84
Price to Sales (P/S)0.61
P/FCF Ratio-18.30
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.56
Revenue Forecast (FY)$5.24B
Yatsen Holding Business Overview & Revenue Model
Company Description
Yatsen Holding Limited, operating with its subsidiaries, is a prominent player in the beauty industry within the People's Republic of China. The company specializes in the creation and distribution of a diverse array of beauty items, marketed unde...
How the Company Makes Money
Yatsen primarily makes money by selling beauty and personal care products to consumers under its owned brands. Revenue is generated when customers purchase items (e.g., makeup and skincare products) through the company’s online storefronts/brand s...
Yatsen Holding Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Neutral
The call presented meaningful strategic and operational progress, led by 40.4% skincare revenue growth, continued R&D and product innovation, strong consumer engagement, improving logistics efficiency, and channel expansion plans. However, these positives were offset by a 35.8% decline in color cosmetics revenue, lower gross margin, higher operating and marketing expenses, substantially wider GAAP and non-GAAP losses, negative operating cash flow, and third-quarter revenue guidance calling for approximately 0% to 10% year-over-year decline. The overall tone was balanced, with strong strategic momentum but significant near-term profitability and outlook challenges.Positive Updates
Total Revenue Growth
Second-quarter total net revenue increased 5.1% year over year to RMB 1.14 billion from RMB 1.09 billion, despite a challenging industry backdrop.
Negative Updates
Color Cosmetics Revenue Decline
Revenue from color cosmetics brands decreased 35.8% year over year, reflecting proactive brand portfolio optimization and deliberate SKU rationalization.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Revenue Growth
Second-quarter total net revenue increased 5.1% year over year to RMB 1.14 billion from RMB 1.09 billion, despite a challenging industry backdrop.
Read all positive updates
Company Guidance
For the third quarter of 26, management expects total net revenues to be between 898.6 million and 998.4 million, representing a year over year decrease of approximately 0% to 10%; these forecasts reflect the company's current and preliminary views on the market and operational conditions, which are subject to change. The company plans to continue shifting resources to skincare brands, which now account for over 70% of revenue, expand B2B and professional channels, improve content creation, CRM retention, budget allocation, and AI-agent use, and optimize its cost structure and resource allocation to support strong skincare growth with better efficiency and stronger profitability over time.Yatsen Holding Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
76
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.52B | 4.18B | 3.44B | 3.41B | 3.77B | 5.76B |
| Gross Profit | 3.51B | 3.31B | 2.65B | 2.51B | 2.56B | 3.85B |
| EBITDA | -91.60M | 56.08M | -501.64M | -560.08M | -500.55M | -1.11B |
| Net Income | -209.10M | -78.66M | -718.21M | -744.69M | -829.69M | -1.52B |
Balance Sheet | ||||||
| Total Assets | 3.93B | 3.85B | 3.97B | 5.01B | 5.86B | 7.27B |
| Cash, Cash Equivalents and Short-Term Investments | 1.06B | 1.05B | 1.36B | 2.06B | 2.59B | 3.20B |
| Total Debt | 597.91M | 176.70M | 148.94M | 113.23M | 132.58M | 421.15M |
| Total Liabilities | 1.25B | 846.88M | 867.85M | 821.24M | 800.13M | 1.26B |
| Stockholders Equity | 2.67B | 3.01B | 3.06B | 4.14B | 4.72B | 5.66B |
Cash Flow | ||||||
| Free Cash Flow | -138.46M | -138.46M | -300.69M | -151.41M | 76.88M | -1.19B |
| Operating Cash Flow | -94.66M | -94.66M | -243.67M | -107.44M | 136.21M | -1.02B |
| Investing Cash Flow | 246.79M | 246.79M | 592.12M | -260.49M | -1.16B | -1.48B |
| Financing Cash Flow | -151.44M | -151.44M | -394.23M | -342.45M | -654.45M | -1.71M |
Yatsen Holding Technical Analysis
Negative
2.94
Price Trends
3.24
Negative
3.11
Negative
3.68
Negative
Market Momentum
-0.18
Positive
41.11
Neutral
27.81
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 2.94 is below the 20-day moving average (MA) of 2.97, below the 50-day MA of 3.24, and below the 200-day MA of 3.68, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 41.11 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.51B | 8.06 | 23.11% | ― | 1.08% | 3.88% | |
69 Neutral | $615.81M | -52.51 | -6.99% | ― | -12.26% | -282.39% | |
64 Neutral | $365.34M | 6.98 | 33.08% | 3.19% | -0.91% | -9.66% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $893.40M | 18.62 | 12.22% | 2.48% | 34.75% | 138.72% | |
49 Neutral | $256.08M | -8.55 | -7.20% | ― | 25.10% | 59.14% | |
48 Neutral | $350.66M | -15.12 | -37.30% | ― | 15.58% | 64.75% |
* Consumer Defensive Sector Average
YSG
Yatsen Holding
2.77
-7.45
-72.90%
BBW
BuildABear Workshop
28.20
-43.20
-60.50%
SBH
Sally Beauty
16.04
1.41
9.64%
TDUP
thredUP
2.70
-8.10
-75.00%
HNST
Honest Company
5.44
1.65
43.54%
RERE
ATRenew Inc. Sponsored ADR
4.04
-0.04
-1.10%
Yatsen Holding Corporate Events
Yatsen Skincare-Led Growth Fails to Prevent Wider Q2 Loss
Sep 2, 2026
For the quarter ended June 30, 2026, Yatsen reported a 5.1% year-on-year rise in net revenues to RMB1.14 billion, driven by a 40.4% surge in skincare sales, which grew to 71.5% of total revenue and offset a 35.8% decline in color cosmetics. Despit...
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.