Yatsen Holding AI Stock Analysis
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Yatsen Holding (YSG) AI Stock Analysis
Yatsen Holding
(NYSE:YSG)
YSG scores below-average primarily due to weak cash flow (negative operating and free cash flow) and bearish technical trends with the stock trading well below key moving averages. Offsetting factors include a strong balance sheet with low leverage and evidence of longer-term margin improvement, but the earnings call highlighted widening losses, negative operating cash flow, and softer near-term revenue guidance, which limits the overall score.
Yatsen Holding (YSG) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $180.10M
- Dividend Yield
- ―
- Average Volume (3M)
- 70.46K
- Price to Earnings (P/E)
- -5.9
- Beta (1Y)
- 1.20
- Revenue Growth
- 25.10%
- EPS Growth
- 59.14%
- Country
- US
- Employees
- 1,623
- Sector
- Consumer Defensive
- Sector Strength
- 62
- Industry
- Household & Personal Products
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 under w...
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 site...
Yatsen Holding Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financial quality is mixed. The income statement shows a clear turnaround with revenue returning to growth in 2025 and gross margin improving materially over time, but operating and net profitability remain negative. The balance sheet is a strength with very low leverage (debt-to-equity ~0.06) and a sizable equity base, yet returns are still negative and equity has trended down versus earlier years. Cash flow is the key risk: operating cash flow and free cash flow were negative in 2024–2025, keeping funding risk elevated until cash generation turns consistently positive.
Income Statement
48NeutralBalance Sheet
76PositiveCash Flow
34Negative| 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 | -91.52M | 56.08M | -504.76M | -560.05M | -506.51M | -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
Price Trends
Market Momentum
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 1.92 is below the 20-day moving average (MA) of 2.24, below the 50-day MA of 2.45, and below the 200-day MA of 3.14, indicating a bearish trend. The MACD of -0.19 indicates Positive momentum. The RSI at 35.56 is Neutral, neither overbought nor oversold. The STOCH value of 34.71 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.
Latest Risks Added
0 New RisksYatsen Holding Peers Comparison
Overall Rating
SBH77.7Outperform
BBW65Neutral
HNST64Neutral
RERE62Neutral
TDUP59Neutral- YSG48Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| SBH | 78Outperform | $1.92B | 9.15 | 27.45% | ― | 0.90% | 7.82% |
| BBW | 65Neutral | $370.69M | 7.10 | 33.08% | 3.17% | -0.91% | -9.66% |
| HNST | 64Neutral | $567.24M | 6.99 | 40.79% | ― | -12.81% | 1040.88% |
| Sector * | 62Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
| RERE | 62Neutral | $904.37M | 19.17 | 12.22% | 2.39% | 34.75% | 138.72% |
| TDUP | 59Neutral | $198.33M | -7.87 | -39.12% | ― | 14.07% | 41.47% |
| YSG | 48Neutral | $181.04M | -5.90 | -7.20% | ― | 25.10% | 59.14% |
* Consumer Defensive Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| YSG | Yatsen Holding Ltd. | 1.92 | -4.72 | -71.08% | |
| BBW | Buildabear Workshop, Inc. | 28.69 | -19.38 | -40.31% | |
| SBH | Sally Beauty Holdings | 19.22 | 4.77 | 33.01% | |
| TDUP | Thredup, Inc. | 1.45 | -6.02 | -80.59% | |
| HNST | Honest Company, Inc. | 5.10 | 2.51 | 96.91% | |
| RERE | ATRenew Inc. Sponsored ADR | 4.18 | 0.17 | 4.32% |
Yatsen Holding Corporate Events
Yatsen Skincare-Led Growth Fails to Prevent Wider Q2 Loss
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. Despite t...
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: Nov 02, 2026