Zepp Health Corp (NYSE: ZEPP)

Sector: Technology Industry: Consumer Electronics CIK: 0001720446
Market Cap 415.40 Mn
P/B 1.84
P/E -6.30
P/S 1.78
ROIC (Qtr) -8.64
Div Yield % 0.00
Rev 1y % (Qtr) 78.49
Total Debt (Qtr) 210.30 Mn
Debt/Equity (Qtr) 0.93

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 563.12M provides 2.68x coverage of total debt 210.30M, indicating robust asset backing and low credit risk.
  • Long-term investments of 219.84M provide solid 3.10x coverage of long-term debt 70.82M, indicating strategic financial planning.
  • Robust tangible asset base of 563.12M provides 21.80x coverage of working capital 25.84M, indicating strong operational backing.
  • Tangible assets of 563.12M provide robust 14.20x coverage of other current liabilities 39.64M, indicating strong asset backing.
  • Long-term investments of 219.84M provide solid 8.51x backing of working capital 25.84M, showing strategic capital allocation.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 45.36M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Long-term investments of 219.84M represent a high 27.59x of fixed assets 7.97M, indicating potential overexposure to financial assets versus operational capabilities.
  • Retained earnings of (479000) provide limited buffer against comprehensive income items of (38.47M), which is 0.01x, indicating elevated exposure to market risks.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 14.04M, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating cash flow of 0 shows concerning coverage of minority interest expenses of (24660), which is -0x, suggesting complex corporate structure risks.

Statement Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Consumer Electronics
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 AAPL Apple Inc. 3,878.78 Bn 34.63 9.32 98.66 Bn
2 SONY Sony Group Corp 150.52 Bn 19.23 1.76 13.01 Bn
3 LPL LG Display Co., Ltd. 2.14 Bn -16.47 0.11 9.69 Bn
4 SONO Sonos Inc 1.99 Bn -32.61 1.38 0.05 Bn
5 ZEPP Zepp Health Corp 0.42 Bn -6.30 1.78 0.21 Bn
6 TBCH Turtle Beach Corp 0.26 Bn 14.29 0.75 0.09 Bn
7 VUZI Vuzix Corp 0.26 Bn -6.90 48.49 0.00 Bn
8 GPRO GoPro, Inc. 0.23 Bn -1.92 0.36 0.20 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.88 1.60
EV to Cash from Ops. EV/CFO -21.06 12.05
EV to Debt EV to Debt 2.44 190.88
EV to EBIT EV/EBIT -11.07 -26.74
EV to EBITDA EV/EBITDA -12.61 5.01
EV to Free Cash Flow [EV/FCF] EV/FCF -20.47 91.29
EV to Market Cap EV to Market Cap 1.24 4.51
EV to Revenue EV/Rev 2.20 3.74
Price to Book Value [P/B] P/B 1.84 4.74
Price to Earnings [P/E] P/E -6.30 -22.81
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -85.09
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.06
Dividend per Basic Share Div per Share (Qtr) 0.00 0.06
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 0.86
Interest Coverage Int. cover (Qtr) -8.41 -21.34
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -25,917.65
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -19.72 24.14
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.99
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -68.63 -460.09
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 0.00 -135.96
EBIT Growth (1y) % EBIT 1y % (Qtr) -42.25 574.68
EBT Growth (1y) % EBT 1y % (Qtr) -35.76 39.32
EPS Growth (1y) % EPS 1y % (Qtr) -61.49 -8.06
FCF Growth (1y) % FCF 1y % (Qtr) 0.00 -2,232.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.37 60.40
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.40 0.77
Cash Payout Ratio Cash Payout Ratio 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.36 0.81
Current Ratio Curr Ratio (Qtr) 1.09 3.16
Debt to Equity Ratio Debt/Equity (Qtr) 0.93 3.74
Interest Cover Ratio Int Coverage (Qtr) -8.41 -21.34
Times Interest Earned Times Interest Earned (Qtr) -8.41 -21.34
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -156.08
EBIT Margin % EBIT Margin % (Qtr) -19.92 393.83
EBT Margin % EBT Margin % (Qtr) -22.28 -168.19
Gross Margin % Gross Margin % (Qtr) 37.20 19.36
Net Profit Margin % Net Margin % (Qtr) -28.30 -169.48