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Zepp Health (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
Rating:48Neutral
Price Target:
$2.50
▼( -1.96% Downside)
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$36.97M
Dividend YieldN/A
Average Volume (3M)26.03K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth-39.27%
EPS Growth-211.36%
CountryUS
Employees765
SectorTechnology
Sector Strength75
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.08
Shares Outstanding7,042,547
10 Day Avg. Volume46,971
30 Day Avg. Volume26,033
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)1.12
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.87Price Target Upside443.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Zepp Health Business Overview & Revenue Model
Company DescriptionZepp Health (ZEPP) is a global leader in smart wearable technology, specializing in the development and production of advanced fitness and health monitoring devices. The company operates within the technology and healthcare sectors, offering a range of products including smartwatches, fitness bands, and health data services. Zepp Health is committed to leveraging artificial intelligence and data analytics to deliver personalized health insights and improve the well-being of its users.
How the Company Makes MoneyZepp Health generates revenue primarily through the sale of its smart wearable devices, such as smartwatches and fitness bands, which are marketed under various brand names including Amazfit and Zepp. The company also earns money by providing value-added services, including health data analytics and cloud-based health management solutions, which are often offered through subscription models. Additionally, Zepp Health benefits from partnerships with healthcare providers and technology companies to integrate its health monitoring solutions into broader health ecosystems, further contributing to its revenue streams.
Zepp Health Financial Statement Overview
Summary
Zepp Health faces significant financial challenges, with declining revenue, negative profitability, and weak cash flow generation. Although the balance sheet remains relatively stable with a solid equity base, the company must address operational inefficiencies and improve profitability to enhance its financial health.Income Statement
Zepp Health has experienced significant revenue decline and negative profit margins. The gross profit margin has decreased from previous years, and the net income has turned negative, indicating operational challenges. Additionally, both EBIT and EBITDA margins are negative, reflecting ongoing profitability issues.35
Negative
Balance Sheet
The company maintains a strong equity position relative to its total assets, which is a positive indicator of financial stability. However, the return on equity is negative due to net losses, and the debt-to-equity ratio is low, suggesting manageable leverage but limited ability to generate returns on equity.60
Neutral
Cash Flow
Zepp Health shows improvement in free cash flow from the previous year, but the operating cash flow remains weak relative to net income, indicating inefficiencies in cash generation. The free cash flow to net income ratio highlights challenges in converting revenue into cash flow.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.22B | 2.50B | 4.14B | 6.25B | 6.43B | 5.81B | Gross Profit |
| 450.12M | 657.78M | 803.12M | 1.31B | 1.33B | 1.47B | EBIT |
| -192.62M | -207.10M | -410.24M | 93.94M | 78.22M | 606.48M | EBITDA |
| -169.22M | -134.39M | -354.09M | 93.94M | 105.35M | 623.70M | Net Income Common Stockholders |
| -205.96M | -212.12M | -306.66M | 95.92M | 228.75M | 575.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 162.39M | 985.62M | 920.95M | 1.49B | 2.30B | 1.82B | Total Assets |
| 972.90M | 636.53M | 5.27B | 6.09B | 5.90B | 5.17B | Total Debt |
| 12.66M | 196.08M | 1.68B | 1.26B | 680.92M | 111.34M | Net Debt |
| -140.49M | 62.20M | 797.71M | -208.74M | -1.59B | -1.69B | Total Liabilities |
| 942.72M | 283.22M | 2.58B | 3.15B | 3.17B | 2.68B | Stockholders Equity |
| 30.18M | 2.49B | 2.67B | 2.92B | 2.73B | 2.50B |
| Cash Flow | Free Cash Flow | ||||
| 0.00 | 40.46M | -5.46B | -285.52M | 72.53M | 381.88M | Operating Cash Flow |
| 0.00 | 42.13M | -5.40B | -232.44M | 157.30M | 428.00M | Investing Cash Flow |
| 0.00 | 7.72M | -289.55M | -1.07B | -206.88M | -112.70M | Financing Cash Flow |
| 0.00 | -295.04M | 1.98B | 551.08M | 564.67M | 25.61M |
Zepp Health Technical Analysis
Negative
2.55
Price Trends
2.80
Negative
2.84
Negative
2.99
Negative
Market Momentum
-0.01
Positive
45.01
Neutral
26.79
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 2.55 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 2.80, and below the 200-day MA of 2.99, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 45.01 is Neutral, neither overbought nor oversold. The STOCH value of 26.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $11.41B | 10.19 | -7.05% | 2.95% | 7.46% | -10.52% | |
57 Neutral | $91.14M | ― | -13.55% | ― | -2.15% | 52.80% | |
52 Neutral | $94.08M | ― | -83.57% | ― | -20.88% | 62.21% | |
48 Neutral | $36.97M | ― | -28.57% | ― | -39.27% | -211.36% | |
45 Neutral | $54.66M | ― | -2.44% | ― | -0.34% | 32.41% | |
39 Underperform | $1.75M | ― | -167.89% | ― | 536.59% | -5.05% | |
34 Underperform | $180.69M | ― | -136.11% | ― | -46.37% | -34.50% |
* Technology Sector Average
Performance Comparison
ZEPP
Zepp Health
2.55
-0.53
-17.21%
GPRO
GoPro
0.59
-0.95
-61.69%
KOSS
Koss
5.83
0.82
16.37%
UEIC
Universal Electronics
6.92
-5.40
-43.83%
VUZI
Vuzix
2.37
0.81
51.92%
WLDS
Wearable Devices Ltd.
1.65
-26.91
-94.22%
Zepp Health Earnings Call Summary
Earnings Call Date:May 19, 2025
(Q1-2025)
| % Change Since: -8.27%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call reveals a positive sentiment due to the significant growth in Amazfit revenue, successful product launches, and improved market share. However, challenges remain with operating profit pressure and increased operating expenses. The company plans to mitigate tariff impacts and anticipates substantial growth in the upcoming quarters.Q1-2025 Updates
Positive Updates
Amazfit Revenue Growth
Amazfit revenue saw a 10% year-over-year growth for the first time after two years of transformation.
New Product Launch Success
The launch of Amazfit Active 2 and Bip 6 received positive reviews and strong market reception, significantly increasing sales momentum.
Market Share Expansion
In Italy, Amazfit's market share of no SIM smartwatch unit sales reached 23.3% in March 2025, ranking second after Apple.
Improved Gross Margin
Achieved a gross margin of 37.3% in Q1 2025, higher than both Q4 2024 and Q1 2024, driven by new product launches.
Successful Cost Management
Despite a net loss, the cash balance only declined by roughly $6 million due to enhanced working capital management.
Upcoming Revenue Growth Forecast
Expecting significant year-over-year revenue growth of 23% to 35% in Q2 2025.
Negative Updates
Operating Profit Pressure
Fixed operating expenses were not fully absorbed by increased sales, putting pressure on operating profit.
Increased Operating Expenses
Operating expenses increased to $31.5 million in Q1 2025, mainly due to higher R&D and marketing expenses.
Tariff Impact
Tariffs on China-made products reduced gross margin by approximately 1 percentage point, with an expected full-year tariff impact of $2 million to $3 million.
Foreign Exchange Headwinds
Faced approximately $1 million in foreign exchange headwinds during the quarter.
Company Guidance
During Zepp Health Corporation's first quarter 2025 earnings call, the company provided guidance indicating a positive outlook for the year. Amazfit revenue experienced a 10% year-over-year growth, marking a significant milestone after two years of transformation. The U.S. market is vital, contributing 15% of revenue, with tariffs currently having a minimal impact. The company aims to achieve a 23% to 35% year-over-year increase in revenue for the second quarter, driven by new product launches and strategic partnerships. Despite first-quarter fixed operating expenses not being fully absorbed by increased sales, Zepp expects improvements in profitability in upcoming quarters. The company's gross margin was 37.3%, with anticipation for further expansion throughout 2025. Operating expenses are targeted to be between $25 million and $27 million per quarter, with an emphasis on cost management while continuing to invest in R&D and marketing. Zepp Health remains optimistic about achieving its first year-over-year growth in overall sales since 2021, guided by product innovation, strengthened partnerships, and an expanding global presence.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.