Yatsen Holding Limited American Depositary Shares each representing twenty (20) Class A Ordinary Shares (YSG)

FairStock Score: 69/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a value investor who wants durable businesses bought at a discount to intrinsic value. Yatsen sells color cosmetics and skincare in China, a competitive consumer category where brands can be faddish. The figures show a business with real scale: in the second quarter of fiscal 2026, revenue was $1.1 billion, but net income was negative $90.8 million and the net margin was -7.95%. The provided revenue growth figure is 22.49%, yet profit growth is -999.00%, which tells me the company is converting sales into losses, not owner earnings. The balance sheet offers some support: debt-to-equity is only 0.22, and FairStock's calculation based on the 2026-10-13 close shows price-to-book of 0.57. But cheap assets can be a trap if they keep shrinking. FairStock's return metrics show return on equity of -7.58% and return on capital employed of -4.46%, so capital is being destroyed. The Piotroski F-Score of 3/9 and Altman Z-Score of -2.15 suggest weak financial quality and possible distress. The negative P/E of -7.33 simply confirms there are no earnings to value. FairStock's 69/100 score is not enough to offset these red flags. I would need evidence of a durable brand, stabilizing margins, and positive cash generation before calling this a Graham-style bargain.

In plain English: Yatsen sells makeup and skin care products in China. The company is bringing in more sales but is losing money, and its financial warning signs look weak. The stock looks cheap compared with its accounting value, but the losses make it hard to call it a safe bargain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer