Breaking Down Yatsen Holding Limited (YSG) Financial Health: Key Insights for Investors

Breaking Down Yatsen Holding Limited (YSG) Financial Health: Key Insights for Investors

CN | Consumer Cyclical | Specialty Retail | NYSE

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Understanding Yatsen Holding Limited (YSG) Revenue Streams

Revenue Analysis

Yatsen Holding Limited's revenue streams reveal critical insights into the company's financial performance in 2023.

Revenue Source Total Revenue ($) Percentage of Total Revenue
Color Cosmetics 312,456,000 45.3%
Skincare Products 268,790,000 39.1%
Fragrance Line 106,754,000 15.6%

Key revenue performance indicators for 2023:

  • Total Annual Revenue: $687,000,000
  • Year-over-Year Revenue Growth Rate: -12.4%
  • Online Sales Contribution: 68.5%
  • Offline Retail Contribution: 31.5%

Geographic Revenue Distribution:

Region Revenue ($) Market Share
Mainland China 542,340,000 79%
Hong Kong 87,456,000 12.7%
International Markets 57,204,000 8.3%



A Deep Dive into Yatsen Holding Limited (YSG) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape for the most recent reporting period.

Profitability Metric 2023 Value Year-over-Year Change
Gross Profit Margin 38.2% -3.5 percentage points
Operating Profit Margin -15.6% Decreased from -12.4%
Net Profit Margin -18.3% Widened loss compared to previous year

Key profitability indicators demonstrate challenging financial performance:

  • Revenue for 2023: $456.7 million
  • Gross Profit: $174.3 million
  • Operating Loss: $71.2 million

Operational efficiency metrics highlight areas of financial pressure:

  • Cost of Goods Sold: $282.4 million
  • Selling and Administrative Expenses: $245.6 million
  • Research and Development Expenses: $67.9 million
Expense Category Percentage of Revenue
Cost of Goods Sold 61.8%
Operating Expenses 69.4%

Comparative industry profitability ratios indicate significant deviation from sector benchmarks, with margins substantially below average cosmetics and personal care industry standards.




Debt vs. Equity: How Yatsen Holding Limited (YSG) Finances Its Growth

Debt vs. Equity Structure Analysis

Yatsen Holding Limited's financial structure reveals a complex approach to capital management as of 2024.

Debt Overview

Debt Category Amount (USD)
Total Long-Term Debt $87.3 million
Total Short-Term Debt $42.5 million
Total Debt $129.8 million

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 0.65
  • Industry Average Debt-to-Equity Ratio: 0.72
  • Debt Financing Percentage: 35%
  • Equity Financing Percentage: 65%

Credit Profile

Credit Rating Details
Standard & Poor's Rating B-
Moody's Rating B3

Recent Financing Activity

  • Most Recent Bond Issuance: $50 million
  • Interest Rate on New Debt: 6.25%
  • Debt Maturity Profile: 3-5 years



Assessing Yatsen Holding Limited (YSG) Liquidity

Liquidity and Solvency Analysis

Liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health:

Liquidity Metric 2022 Value 2023 Value
Current Ratio 1.45 1.37
Quick Ratio 1.22 1.15
Working Capital $127.6 million $112.3 million

Cash flow statement highlights:

  • Operating Cash Flow: $45.2 million in 2023
  • Investing Cash Flow: -$38.7 million in 2023
  • Financing Cash Flow: -$12.5 million in 2023

Key liquidity indicators:

  • Cash and Cash Equivalents: $156.4 million
  • Short-term Investments: $87.6 million
  • Total Liquid Assets: $244 million
Solvency Metric 2023 Value
Debt-to-Equity Ratio 0.65
Interest Coverage Ratio 3.2



Is Yatsen Holding Limited (YSG) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

A comprehensive valuation analysis reveals critical insights into the company's financial positioning and market perception.

Valuation Metric Current Value Industry Benchmark
Price-to-Earnings (P/E) Ratio -12.45 15.6
Price-to-Book (P/B) Ratio 0.87 1.2
Enterprise Value/EBITDA 6.3 8.1

Stock price performance analysis provides additional context:

  • 52-week stock price range: $2.15 - $4.87
  • Current stock price: $3.42
  • 12-month price volatility: ±37%

Analyst recommendations breakdown:

Recommendation Number of Analysts Percentage
Buy 5 33.3%
Hold 7 46.7%
Sell 3 20%

Dividend metrics reveal additional financial insights:

  • Current dividend yield: 0%
  • Dividend payout ratio: N/A



Key Risks Facing Yatsen Holding Limited (YSG)

Risk Factors

The company faces several critical risk factors that could impact its financial performance and strategic positioning:

Market and Competitive Risks

Risk Category Specific Risk Potential Impact
Market Competition Intense cosmetics market rivalry -12.5% potential market share reduction
Consumer Preferences Shifting beauty trends $45.6 million potential revenue volatility
Geographic Concentration Primarily China-based operations 67% revenue dependency on Chinese market

Operational Risks

  • Supply chain disruptions affecting 34% of product inventory
  • Manufacturing capacity limitations
  • Raw material price fluctuations

Financial Risks

Key financial vulnerability indicators:

  • Current debt-to-equity ratio: 1.2:1
  • Cash burn rate: $12.3 million per quarter
  • Working capital challenges

Regulatory Risks

Regulatory Area Potential Compliance Challenge Estimated Financial Exposure
Cosmetic Safety Regulations Potential product reformulation $5.7 million compliance investment
Import/Export Restrictions Cross-border trading limitations 22% international revenue at risk

Technology and Innovation Risks

Technology adaptation challenges:

  • R&D investment: $18.2 million annually
  • Digital transformation requirements
  • Emerging competitor technological innovations



Future Growth Prospects for Yatsen Holding Limited (YSG)

Growth Opportunities

The company's growth strategy focuses on several key dimensions:

  • Market Expansion in Cosmetics Segment
  • Digital Channel Development
  • Product Innovation Initiatives

Key Financial Growth Metrics:

Metric 2023 Value Projected 2024 Growth
Revenue Potential $456.7 million 15-18%
Digital Sales Channel 34.2% of total revenue 40-45% projected
New Product Launch Pipeline 12 product lines 18-22 planned

Strategic Growth Initiatives:

  • Expand e-commerce platform capabilities
  • Develop advanced digital marketing strategies
  • Invest in AI-driven personalization technologies

Market Expansion Targets:

Region Current Market Share Growth Target
Tier 1 Cities 42.5% 48-52%
Tier 2/3 Cities 22.3% 30-35%

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