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Beauty Health (SKIN)
NASDAQ:SKIN
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Beauty Health
(NASDAQ:SKIN)
46Neutral
Positive Factors
Consumer Demand
Despite challenges, the consistent demand for Hydrafacial treatments highlights strong consumer interest in beauty, health, and wellness.
Financial Performance
Beauty Health reported 2024 revenue of $334.3 million that was better than the estimate of $330.3 million and consensus of $327.9 million.
Manufacturing
The company is seeing meaningful improvements in overall manufacturing quality and greater agility in addressing technical issues.
Negative Factors
Macroeconomic Conditions
Challenging macroeconomic conditions, especially outside the United States, led to a (40.0%) year-over-year decline in equipment sales.
Market Outlook
Ongoing macro headwinds lead to a lower 2025 outlook for The Beauty Health Company.
Revenue Impact
The company plans to switch to a distributor model from a direct sales model during 2025, which is expected to have a $10-15 million negative impact on revenue.
Beauty Health (SKIN) vs. S&P 500 (SPY)
Market Cap
$176.60M
Dividend YieldN/A
Average Volume (3M)659.84K
Price to Earnings (P/E)―
Beta (1Y)1.91
Revenue Growth-16.00%
EPS Growth69.61%
CountryUS
Employees881
SectorConsumer Cyclical
Sector Strength51
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)-0.43
Shares Outstanding125,245,180
10 Day Avg. Volume664,528
30 Day Avg. Volume659,844
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.49
Price to Cash Flow (P/CF)2.50
P/FCF Ratio2.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$1.50Price Target Upside11.94% Upside
Rating ConsensusHold
Number of Analyst Covering6
Beauty Health Business Overview & Revenue Model
Company DescriptionBeauty Health (SKIN) is a leading company in the beauty and wellness industry, specializing in advanced skincare technologies. The company is well-known for its flagship product, the HydraFacial, a non-invasive skincare treatment that combines cleansing, exfoliation, extraction, hydration, and antioxidant protection. Beauty Health operates within the skincare and aesthetics sectors, focusing on providing innovative solutions to enhance skin health and appearance.
How the Company Makes MoneyBeauty Health primarily generates revenue through the sale of its HydraFacial systems and related consumables. The company's revenue model is based on a combination of equipment sales and recurring revenue from the consumables used in the treatments. This includes serums, tips, and other accessories necessary for the HydraFacial procedures. Additionally, Beauty Health leverages a network of partnerships with spas, dermatologists, and aesthetic professionals who offer their treatments, which helps in expanding their market reach and driving sales. The company may also engage in strategic collaborations to enhance its product offerings and market penetration, contributing to its overall financial performance.
Beauty Health Financial Statement Overview
Summary
Beauty Health faces challenges in achieving profitability and managing high levels of debt. While there are signs of operational efficiency and improved cash flow, the financial risk remains high due to leverage. Continued focus on reducing losses and managing debt levels will be crucial for long-term stability.Income Statement
Beauty Health's revenue has shown some fluctuations with a current decrease from $397.99M in 2023 to $334.29M in 2024. The company has consistently reported negative net income and EBIT, indicating profitability challenges. However, the gross profit margin remains positive, suggesting some level of operational efficiency.50
Neutral
Balance Sheet
The company exhibits high leverage with a debt-to-equity ratio over 10x, which poses a significant financial risk. The equity ratio has been declining, indicating a shrinking equity base relative to total assets. Despite these challenges, the company maintains a substantial cash position.40
Negative
Cash Flow
Operating cash flow turned positive in 2024, indicating improved cash generation. However, free cash flow growth is inconsistent, and cash flow from financing activities is negative, reflecting significant debt repayments or reductions in capital funding.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 334.29M | 397.99M | 365.88M | 260.09M | 119.09M | Gross Profit |
| 182.30M | 155.11M | 250.34M | 181.83M | 67.20M | EBIT |
| -67.77M | -130.92M | -24.28M | -36.64M | -17.18M | EBITDA |
| 14.54M | -56.00M | 80.75M | -344.44M | -2.81M | Net Income Common Stockholders |
| -29.10M | -100.12M | 44.22M | -375.11M | -29.18M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 370.06M | 523.02M | 568.20M | 901.89M | 9.49M | Total Assets |
| 685.68M | 929.11M | 1.01B | 1.22B | 222.84M | Total Debt |
| 568.16M | 752.29M | 751.79M | 729.91M | 216.54M | Net Debt |
| 198.09M | 229.26M | 183.59M | -171.97M | 207.05M | Total Liabilities |
| 633.88M | 869.72M | 837.43M | 916.51M | 252.79M | Stockholders Equity |
| 51.80M | 59.39M | 171.48M | 302.30M | -29.96M |
| Cash Flow | Free Cash Flow | |||
| 9.34M | 8.70M | -123.99M | -43.98M | -16.25M | Operating Cash Flow |
| 16.13M | 21.75M | -106.60M | -28.36M | -12.44M | Investing Cash Flow |
| -6.79M | -31.51M | -18.87M | -37.73M | -3.82M | Financing Cash Flow |
| -158.34M | -37.45M | -205.24M | 959.03M | 18.27M |
Beauty Health Technical Analysis
Negative
1.34
Price Trends
1.51
Negative
1.54
Negative
1.61
Negative
Market Momentum
-0.04
Negative
45.17
Neutral
53.58
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIN, the sentiment is Negative. The current price of 1.34 is above the 20-day moving average (MA) of 1.33, below the 50-day MA of 1.51, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 53.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIN.
Beauty Health Risk Analysis
Beauty Health disclosed 94 risk factors in its most recent earnings report. Beauty 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 0 New Risks
Beauty Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $17.25B | 14.66 | 50.39% | ― | 0.79% | -2.70% | |
73 Outperform | $1.15B | 10.15 | 7.19% | ― | -4.36% | -26.64% | |
59 Neutral | $12.68B | 11.14 | 0.97% | 3.72% | 1.33% | -21.21% | |
58 Neutral | $228.03M | 19.18 | 14.07% | ― | -1.86% | 25.97% | |
57 Neutral | $4.83B | 40.12 | 0.33% | ― | 1.35% | -99.94% | |
50 Neutral | $23.70B | 147.29 | -14.17% | 3.06% | 0.07% | -249.21% | |
46 Neutral | $176.60M | ― | -52.34% | ― | -16.00% | 69.61% |
* Consumer Cyclical Sector Average
Performance Comparison
SKIN
Beauty Health
1.34
-3.10
-69.82%
EL
The Estée Lauder Companies
65.89
-84.86
-56.29%
HELE
Helen Of Troy
51.45
-63.79
-55.35%
ULTA
Ulta Beauty
371.90
-150.98
-28.87%
COTY
Coty
5.46
-6.50
-54.35%
EWCZ
European Wax Center
4.24
-8.74
-67.33%
Beauty Health Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -5.63% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced situation where the company demonstrated strong financial discipline and consumables sales growth, yet faced significant challenges with equipment sales and market pressures in China. With a strategic shift towards a distributor model in China and continued innovation in consumables, the company is positioning itself for long-term growth despite near-term headwinds.Highlights
Exceeding Financial Guidance
Net revenue for the full year reached $334 million and adjusted EBITDA was $12.3 million, both exceeding guidance. Operating expenses were reduced by over $30 million, reflecting strong financial discipline.
Consumable Sales Growth
Consumable sales grew 8.7% in Q4 compared to the previous year, with full-year sales reaching $208.9 million, marking a 10.1% increase in the Americas, 5.3% in APAC, and 8.2% in EMEA.
Operational Improvements
Consolidated manufacturing in Long Beach, exited China production, and completed the Syndeo 3.0 global replacement program, improving quality control and gross margin profile.
Innovation and Product Pipeline
Launched the Hydralock HA Booster, the most successful Hydrafacial branded booster to date, and plans to release additional boosters in 2025.
Lowlights
Decline in Equipment Sales
Global equipment sales decreased by 40% in Q4, with significant declines in APAC (70.2% in China) and EMEA, attributed to macroeconomic uncertainties and high borrowing costs.
China Market Challenges
China's revenue declined by 56.4% year-over-year with a 70.2% drop in system sales and an 8.3% decrease in consumables revenue, leading to a shift towards a third-party distributor model.
Q1 2025 Guidance
Projected sales for Q1 2025 are $61 million to $66 million with an adjusted EBITDA loss expected between negative $6 million to negative $4 million, reflecting historical low sales quarters and macroeconomic pressures.
Company Guidance
During the Beauty Health Company's fourth-quarter and full-year 2024 earnings call, the company reported net revenue of $334 million and an adjusted EBITDA of $12.3 million, both surpassing their guidance. They successfully reduced operating expenses by over $30 million, underscoring their commitment to financial discipline. The company sold 4,907 systems globally, with a total of 34,735 active machines in the field by year-end. Consumable sales for the full year reached $208.9 million, showing growth across all regions. Despite a challenging macroeconomic environment, particularly in China, the company is transitioning to a third-party distributor model to enhance profitability. For 2025, they project sales between $270 million and $300 million, with adjusted EBITDA ranging from $10 million to $25 million. They anticipate first-quarter sales of $61 million to $66 million, with an adjusted EBITDA loss of $4 million to $6 million. The focus for 2025 includes improving sales execution, operational efficiency, and financial discipline to capture long-term growth opportunities.Beauty Health Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Beauty Health Announces New Executive Appointments
Positive
Feb 28, 2025
On February 25, 2025, The Beauty Health Company announced the designation of Ronald Menezes and Sheri Lewis as executive officers due to the expanded scope of their roles, making them subject to Section 16 of the Exchange Act. Ronald Menezes, appointed as Chief Revenue Officer on October 15, 2024, will lead global sales and business development, leveraging his extensive experience in the medical aesthetics industry to drive revenue growth. Sheri Lewis, appointed as Chief Supply Chain and Operations Officer on April 9, 2024, will oversee global supply chain strategies, drawing from her leadership experience at Avantor and Medtronic to enhance operational performance. These appointments are expected to strengthen the company’s leadership team and support its strategic growth initiatives.
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.