Zepp Health Corporation (ZEPP) AI Stock Analysis

Zepp Health Corporation, formerly known as Huami Corporation, specializes in developing, manufacturing, and selling smart wearable devices in the People's Republic of China. Headquartered in Hefei, the company operates via two primary segments: Xiaomi Wearable Products, and Self-Branded Products and Others. Under the Xiaomi brand, it produces smart bands, watches, scales, and smart hearables that track biometric data and activity metrics via the Zepp Life and Zepp apps. In addition to wearable hardware, Zepp Health markets home treadmills, sportswear, home appliances, and smart watch accessories for the digital health and wellness sector.

Revenue dropped from $968.7M in FY2021 to $615.7M in FY2022 and $352.6M in FY2023, before rebounding to $1.33B in FY2024 and $1.82B in FY2025, reflecting a 5-year revenue CAGR of 14.3%. Operating margins shifted from 1.5% in FY2021 down to -11.3% in FY2025, while gross margin expanded from 20.9% to 39.2% over that span. Net income deteriorated from $21.4M in FY2021 to -$280.9M in FY2025. In the latest quarter ended June 30, 2026, quarterly revenue grew 6.9% year-over-year, while quarterly earnings declined 68.1%, contributing to trailing twelve months revenue of $276.0M and an operating margin of -19.4%.

As of June 30, 2026, Zepp Health held $721.4M in cash and short-term investments against $1.67B in total debt, yielding net debt of $948.3M and a debt-to-equity ratio of 1.33. The current ratio stood at 0.90, alongside shareholders' equity of $1.26B. In FY2025, operating cash flow was -$179.7M and free cash flow was -$185.1M. Capital expenditures used $5.5M, while share buybacks totaled $8.7M.

Zepp Health trades at a forward P/E of 3.1x, below the median of 18.8x for its US-listed Technology peers. Its price-to-sales ratio is 0.2x compared to the peer median of 2.8x, and its price-to-book multiple is 0.3x with an enterprise value of $238.5M. Over the past year, the stock fell 94.4%, lagging the S&P 500 return of 16.8%. Over a five-year timeframe, the stock declined 91.1%, trailing the S&P 500 gain of 83.0%.

Zepp Health is covered by 1 analyst who maintains a Strong Buy rating. The mean price target is $43.86, which is 1352.3% above the last closing price of $3.02. For the fiscal year ending December 31, 2026, the revenue estimate is $2.04B with an EPS estimate of -$0.10. For the following fiscal year, revenue is projected at $2.17B. The company recorded 0 EPS beats over the last 4 quarters, and its next earnings date is November 3, 2026.

This page is an AI-written research summary of Zepp Health Corporation (ZEPP). 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.

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