SkinHealth Systems (SKIN) Stock Analysis & Winston Score

The Beauty Health Company makes skincare treatment devices used in medical spas, dermatology offices, and wellness clinics. Its flagship product is the Hydrafacial machine, which cleans and hydrates skin using a patented tip-and-solution system. The company sells to professional providers rather than directly to consumers, and it operates in the broader medical aesthetics industry.

The company makes money two ways: selling the Hydrafacial devices upfront and then selling the consumable tips and serums that providers must keep buying to perform each treatment. This recurring consumables revenue is the core of its business model and provides some stability. The company operates globally, with a presence in over 90 countries, but it is small, with a market cap around $100 million, and has struggled with profitability. The main risk is that demand for elective aesthetic treatments is sensitive to consumer spending, and the company carries debt from a period of aggressive expansion that it is still working through.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-6.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+35.7% YoY

YoY Growth Rate

EPS growth accelerating

Insider Activity

38.8%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Runway

~9 years

$204M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

$204M cash & investments at current burn rate

Revenue declining

SkinHealth Systems's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

68.4%

Premium pricing power — 68.4% gross margin

Operating Margin

-2.8%

Losing money on operations — -2.8%

ROCE

-0.4%

Weak — -0.4% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY

-8.2%

Shrinking sales (-8.2% YoY)

EPS YoY

N/A

Data not available

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

N/A

Data not available

FCF Margin

8.8%

Modest free cash flow (8.8%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

6.31

Heavy debt load (6.31)

Interest Cover

N/A

Data not available

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Valuation

P/E Ratio (TTM)

N/M

no trend

Negative earnings — P/E not meaningful

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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