MeritValue

Zepp Health Corp

ZEPPdata completeness 100%9 fiscal years on file
The thesis, from the filings

Zepp Health Corp earns about -9% on invested capital, and has bought back 4% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$980.8M1$613.6M2$352.9M3$182.6M3$258.9M3
Net income$21.6M4−$43.2M5−$31M6−$75.7M6−$40.1M6
Operating cash flow−$36.5M7−$117.1M8$42.6M9−$24.4M9−$25.7M9
Capital expenditure$7.23M10$1.21M11$1.6M12$1.4M12$516,00012
Free cash flow (derived)−$43.7M7−$118.3M8$41M9−$25.8M9−$26.2M9
Total debt$114.1M13$99.2M14$120M15$75.2M16$59.5M16
Cash & equivalents$230.4M17$128.6M18$133.7M19$91.1M19$57M19
Diluted shares264.4M246.3M243.1M258.9M254.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$8.43
your share of equity
Profit it earned you last year
−$1.57
Free cash flow it threw off
−$1.03
Debt you’d be carrying
$2.34

10 shares is a claim on $8.43 of net worth that earned you −$1.57 and generated −$1.03 of cash last year, against $2.34 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-9% avg · 5y
FY21 6%FY22 -11%FY23 -7%FY24 -19%FY25 -13%

It earned an average -9% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−4% shares · 5y

Share count is down 4% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 48% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 20-F · period ending 2022-12-31 · accession 0001410578-25-000903 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001104659-26-048127 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001410578-25-000903 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001104659-26-048127 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001410578-25-000903 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001104659-26-048127 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001410578-25-000903 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001104659-26-048127 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (LongTermDebt)
  14. 20-F · period ending 2022-12-31 · accession 0001104659-23-049064 (LongTermDebt)
  15. 20-F · period ending 2023-12-31 · accession 0001410578-25-000903 (LongTermDebt)
  16. 20-F · period ending 2024-12-31 · accession 0001104659-26-048127 (LongTermDebt)
  17. 20-F · period ending 2021-12-31 · accession 0001104659-22-052369 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2022-12-31 · accession 0001410578-25-000903 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2023-12-31 · accession 0001104659-26-048127 (CashAndCashEquivalentsAtCarryingValue)