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Zepp Health (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
55Neutral
Zepp Health (ZEPP) vs. S&P 500 (SPY)
Market Cap
$43.88M
Dividend YieldN/A
Average Volume (3M)25.53K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-50.99%
EPS Growth5.97%
CountryUS
Employees839
SectorTechnology
Sector Strength43
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-4.68
Shares Outstanding7,299,485
10 Day Avg. Volume34,341
30 Day Avg. Volume25,529
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.64
Price to Cash Flow (P/CF)N/A
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
$14.65Price Target Upside388.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Zepp Health Business Overview & Revenue Model
Company DescriptionZepp Health (ZEPP), formerly known as Huami Corporation, is a leading innovator in smart wearable technology and health solutions. The company operates primarily in the consumer electronics sector, focusing on the design, development, and production of smart wearable devices, such as fitness bands, smartwatches, and related health monitoring gadgets. Zepp Health leverages advanced AI algorithms and health data analytics to provide users with actionable insights into their health and fitness activities.
How the Company Makes MoneyZepp Health generates revenue primarily through the sale of its smart wearable devices, including fitness trackers and smartwatches, which are marketed under various brand names, including Amazfit and Zepp. These products are sold globally through direct-to-consumer channels, online marketplaces, and retail partnerships. Additionally, the company earns income from providing cloud-based health data analytics and subscription services that enhance the user experience through personalized health insights and recommendations. Strategic partnerships with technology companies and health service providers also contribute to its revenue streams by integrating Zepp's technology into broader health and wellness ecosystems.
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 | ||||
| 1.78B | 2.50B | 4.14B | 6.25B | 6.43B | 5.81B | Gross Profit |
| 636.96M | 657.78M | 803.12M | 1.31B | 1.33B | 1.47B | EBIT |
| -169.24M | -207.10M | -410.24M | 93.94M | 78.22M | 606.48M | EBITDA |
| -132.21M | -134.39M | -354.09M | 93.94M | 105.35M | 623.70M | Net Income Common Stockholders |
| -189.73M | -212.12M | -306.66M | 95.92M | 228.75M | 575.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 985.62M | 985.62M | 920.95M | 1.49B | 2.30B | 1.82B | Total Assets |
| 4.51B | 636.53M | 5.27B | 6.09B | 5.90B | 5.17B | Total Debt |
| 1.39B | 196.08M | 1.68B | 1.26B | 680.92M | 111.34M | Net Debt |
| 440.92M | 62.20M | 797.71M | -208.74M | -1.59B | -1.69B | Total Liabilities |
| 2.01B | 283.22M | 2.58B | 3.15B | 3.17B | 2.68B | Stockholders Equity |
| 2.49B | 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
Neutral
3.00
Price Trends
2.98
Positive
2.96
Positive
2.96
Positive
Market Momentum
0.10
Positive
47.00
Neutral
28.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Neutral. The current price of 3 is below the 20-day moving average (MA) of 3.11, above the 50-day MA of 2.98, and above the 200-day MA of 2.96, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 28.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 0 New Risks
Zepp Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.82T | 30.51 | 34.29% | 0.83% | 15.04% | 12.38% | |
78 Outperform | $1.89T | 19.19 | 32.91% | 0.39% | 13.89% | 38.99% | |
75 Outperform | $41.11B | 29.26 | 19.00% | 1.39% | 20.44% | 9.05% | |
74 Outperform | $3.27T | 34.64 | 136.52% | 0.46% | 2.61% | -2.14% | |
63 Neutral | $93.61B | 21.06 | 31.93% | 2.38% | -7.16% | -12.12% | |
58 Neutral | $21.03B | 10.28 | -16.29% | 2.47% | 4.45% | -23.80% | |
55 Neutral | $43.88M | ― | -25.09% | ― | -50.99% | 5.97% |
* Technology Sector Average
Performance Comparison
ZEPP
Zepp Health
3.00
-1.04
-25.74%
AAPL
Apple
217.90
48.67
28.76%
GRMN
Garmin
213.66
68.62
47.31%
GOOGL
Alphabet Class A
154.33
-0.42
-0.27%
MSFT
Microsoft
378.80
-42.55
-10.10%
NKE
Nike
63.29
-27.57
-30.34%
Zepp Health Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: 0.00% | Next Earnings Date: May 27, 2025
Earnings Call Sentiment Neutral
The earnings call presented both significant accomplishments and challenges. The company achieved strong quarter-over-quarter sales growth and gross margin expansion, reflecting successful product launches and strategic partnerships. However, the year-over-year revenue decline, operating losses, and impairment-related impacts indicate substantial challenges. The company's strategic initiatives and refinancing efforts are promising, but current financial setbacks and market conditions present ongoing hurdles.Highlights
Quarter-Over-Quarter Sales Growth
Overall sales in the fourth quarter of 2024 rose by more than 40% quarter over quarter, aligning with company guidance.
Gross Margin Expansion
Gross margin for the year 2024 reached 39%, up from 26.2% in full year 2023, driven by better product mix and higher brand awareness.
Successful Product Launches
The T-Rex 3 smartwatch saw substantial sequential growth in sales, establishing new benchmarks for performance and market demand.
Strategic Partnerships
Partnerships with athletes like Gabby Thomas and Jasmine Paolini and sports organizations like HYROX enhanced brand visibility and growth potential.
Debt Refinancing
Successfully refinanced the majority of short-term debts maturing in 2025 into long-term debt instruments with a lower coupon rate.
Lowlights
Year-Over-Year Revenue Decline
Revenue declined compared to 2023 due to declining Xiaomi product sales, supply constraints, and consumer-related macroeconomic issues.
Operating Loss
Adjusted operating loss for Q4 2024 stood at $7.4 million, primarily due to lower sales volume and insufficient coverage of operating expenses.
Impairment Losses
GAAP net loss included $13 million in investment-related impairments and a $14 million deferred tax asset valuation allowance.
Decreased Cash Balance
Cash balance decreased from $140 million in Q4 2023 to $111 million in Q4 2024 due to lower operating profit.
Company Guidance
In the Zepp Health Corporation's fourth quarter and full year 2024 earnings call, the company reported strong quarterly sales growth of over 40% quarter-over-quarter, driven by the successful launch of the T-Rex 3 smartwatch. The company's gross margin for 2024 increased to 39%, up from 26.2% in 2023, supported by a shift towards higher-margin products. Zepp ended the year with $112 million in cash on hand, indicating a solid position to invest further. Looking ahead to 2025, Zepp expects revenue growth in the range of $40 to $45 million for Q1, marking a 14% to 29% increase in self-branded product sales. The company plans to introduce one to two new products each quarter, aiming for continued expansion in the global market and improved profitability. Despite challenges such as a decline in Xiaomi product sales and macroeconomic pressures, Zepp Health remains optimistic about its long-term growth trajectory, driven by innovations in AI-powered health solutions and strategic brand partnerships.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.