Yatsen Holding Limited (YSG) AI Stock Analysis
YSG AI stock analysis summary
AI ResearchYatsen Holding Limited (YSG) is a beauty products company based in China operating brands such as Perfect Diary and Galenic. In FY2025, revenue grew 21.5% to $4.18B while gross margin reached 79.2%, narrowing net losses to -$78.7M. The company maintains a strong liquidity profile with $1.06B in cash and short-term investments alongside net cash of $458.0M as of June 30, 2026.
- Market cap
- $242.0M
- Revenue (TTM)
- $4.54B
- P/E
- —
- 1Y return
- -70.7% S&P 500 16.8%
- Avg. target
- $3.76 45.9% vs last close
Bull case
- Gross margin has widened every year from 66.8% in FY2021 to 79.2% in FY2025.
- The company maintains a solid net cash position of $458.0M with $1.06B in cash and short-term investments as of June 30, 2026.
- The sole analyst covering the stock maintains a StrongBuy rating with a mean price target of $3.76, implying 45.9% upside from the last close.
Bear case
- Free cash flow remained negative in FY2025 at -$138.5M, marking ongoing cash burn.
- The stock experienced severe underperformance over the past year with a decline of 70.7%.
- Yatsen recorded 0 EPS beats over the last 4 quarters and is projected to report an EPS of -$0.83 for the current fiscal year.
What Yatsen does
Yatsen Holding Limited develops and distributes beauty products across the People's Republic of China. Founded in 2016 and headquartered in Guangzhou, China, the company markets color cosmetics, skincare, nail products, and makeup tools. Its brand portfolio includes Perfect Diary, Little Ondine, Pink Bear, Abby's Choice, Galenic, DR.WU, Eve Lom, and EANTiM. The company also offers beauty kits, perfumes, and cross-over products such as beauty devices and colored contact lenses. Yatsen distributes products through physical retail stores and online sales channels.
Growth and profitability
Revenue declined from $5.76B in FY2021 to $3.77B in FY2022 and $3.41B in FY2023, before rebounding with 0.8% growth to $3.44B in FY2024 and 21.5% growth to $4.18B in FY2025. Gross margin expanded consistently over this period, rising from 66.8% in FY2021 to 79.2% in FY2025. Operating margin improved from -27.8% in FY2021 to -4.3% in FY2025, while net losses narrowed from -$1.52B to -$78.7M. Over the trailing twelve months, revenue reached $4.54B with an operating margin of -11.6% and net margin of -4.6%. For the latest quarter ended June 30, 2026, quarterly revenue grew 5.1% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Yatsen held $1.06B in cash and short-term investments against total debt of $597.9M, resulting in net cash of $458.0M. The company reported a current ratio of 3.70 and a debt-to-equity ratio of 0.22 on shareholders' equity of $2.67B. In FY2025, operating cash flow stood at -$94.7M and free cash flow was -$138.5M. Capital expenditures totaled $43.8M, while share buybacks absorbed $111.0M, contributing to a 5-year share count change of -25.8%.
Valuation and performance
At a last close price of $2.58, Yatsen has a market capitalization of $242.0M and an enterprise value of $191.2M. The stock trades at a price-to-sales multiple of 0.1x, below the 0.7x median for its US-listed Consumer Defensive peers. Its price-to-book ratio is 0.6x and EV-to-revenue is 0.3x. Over the past year, the shares fell 70.7%, underperforming the 16.8% return for the S&P 500 (SPY). Over a 5-year period, the stock dropped 84.6% compared to an 83.0% gain for the benchmark.
What analysts expect
Wall Street coverage consists of 1 analyst rating, categorized as StrongBuy, with 0 Buy, 0 Hold, 0 Sell, and 0 StrongSell ratings. The mean price target is $3.76, representing 45.9% upside compared to the last close of $2.58. For the fiscal year ending December 31, 2026, consensus estimates project an EPS of -$0.83 on revenue of $4.50B. For the next fiscal year, expectations are an EPS of $1.09 and revenue of $5.02B. The company recorded 0 EPS beats over the last 4 quarters, with the next earnings date scheduled for November 16, 2026.
Key risks and what to watch
- Operating margin remains negative at -11.6% over the trailing twelve months, reflecting sustained unprofitability.
- Long-term top-line momentum has been subdued, reflected in a 5-year revenue CAGR of -3.3% from FY2020 to FY2025.
- Operating cash flow was -$94.7M in FY2025, which could strain liquidity if operations do not turn cash-generative.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this YSG AI stock analysis
This page is an AI-written research summary of Yatsen Holding Limited (YSG). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: YSG income statement, YSG analyst forecast, YSG chart. See the YSG stock overview for the latest quote and news.
YSG AI stock analysis FAQ
Does Yatsen Holding Limited (YSG) pay a dividend?
YSG does not pay a dividend based on current company data.
What are analysts' price targets for YSG stock?
The mean price target for YSG is $3.76, representing 45.9% upside from the closing price of $2.58.
How much cash and debt does Yatsen have?
As of June 30, 2026, Yatsen held $1.06B in cash and short-term investments and $597.9M in total debt, leaving net cash of $458.0M.
When does Yatsen report its next earnings?
Yatsen is scheduled to report its next earnings on November 16, 2026.