111 (YI) AI Stock Analysis

• Market Cap: $71.23M
• Dividend Yield: N/A
• Average Volume (3M): 22.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -7.46%
• EPS Growth: 73.05%
• Country: US
• Employees: 1,238
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Pharmaceuticals
• EPS (TTM): -0.20
• Shares Outstanding: 5,067,436
• 10 Day Avg. Volume: 15,490
• 30 Day Avg. Volume: 22,804
• PEG Ratio: 0.07
• Price to Book (P/B): -0.61
• Price to Sales (P/S): 0.03
• P/FCF Ratio: 1.58
• Enterprise Value/Market Cap: 3.24
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.33
• Enterprise Value/Ebitda: 21.87
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $7.00 ▲(145.61% Upside)

The score is primarily held down by weak financial performance, including persistent losses, declining revenue, and negative equity. Technicals are a partial offset with strong trend strength above major moving averages and positive MACD, but elevated RSI suggests the move may be overextended. Valuation provides limited support because earnings are negative and dividend yield is unavailable.

Positive Factors

Asset-light business model

Shifting to an asset-light model reduces fixed capital and operational overhead, improving operating leverage and liquidity. Structurally, using fulfillment partners preserves service capacity while lowering balance-sheet intensity, enabling faster scaling and less capital tied up in physical assets over months.

Return to sustained profitability

Consistent non-GAAP profitability and positive operating cash flow signal improving unit economics and execution on cost structure. Over 2-6 months this trend supports internal funding for operations, reduces refinancing needs, and indicates the business model can generate cash when paired with the asset-light strategy.

Positive operating cash flow conversion

Ability to convert accounting results into operating cash provides resilience despite negative net income. This cash-generation capability supports working capital, funds strategic investments (e.g., AI platform plans) and reduces near-term reliance on external capital, strengthening operational sustainability.

Negative Factors

Declining revenue trend

A persistent revenue decline undermines scalability and margin recovery prospects. Structural top-line weakness reduces operating leverage, limits the impact of cost cuts, and makes sustaining recent profitability harder unless customer growth or GMV reverses, posing a multi-quarter headwind to durable growth.

Negative shareholders' equity

Negative equity signals balance-sheet fragility and constrains financing options. Over months this heightens refinancing and covenant risk, can force dilutive capital raises or asset disposals, and limits strategic flexibility for investments or M&A, weakening long-term financial stability.

Sharp free cash flow decline

A severe drop in free cash flow reduces internal funding for growth and platform initiatives. Persistently depressed FCF increases dependency on external financing and impairs the company's ability to invest in supply chain, AI, or marketing—threatening sustained operational improvements.

111 Business Overview & Revenue Model

Company Description

111, Inc. operates an integrated online and offline platform in the healthcare market in the People's Republic of China. It operates through two segments, B2B and B2C. The company sells medical and wellness products through online retail, and wholesale and retail pharmacies, as well as provides value-added services that include online consultation services and electronic prescription services to consumers. It offers prescription and over-the counter drugs, including western and traditional Chinese medicines; nutritional supplements, such as vitamins and dietary products; contact lenses; medical supplies and devices comprising bandages and thermometers; and personal care products consisting of skin care, birth control, and sexual wellness products; and baby products. The company also operates an online marketplace where third-party sellers can directly sell to pharmacies; provides online loan application services to the clients of 1 Pharmacy, which include pharmacies and wholesalers; and data and supply chain integration services. As of December 31, 2021, it operated 14 offline retail pharmacies under the Yi Hao Pharmacy brand name in Guangzhou, Tianjin, Kunshan, Chongqing, and Wuhan provinces. In addition, the company offers warehousing, logistics, procurement, research and development, and consulting services; and software development and information technology support services. It serves pharmacies, pharmaceutical companies and distributors, medical professionals, and insurance companies. The company was formerly known as New Peak Group and changed its name to 111, Inc. in April 2018. 111, Inc. was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

111 (YI) generates revenue primarily through its online sales of consumer goods. The company's revenue model includes direct sales of products to consumers, where it typically retains a margin on each sale. Additionally, YI benefits from partnerships with local farmers and suppliers, allowing for a robust supply chain that enhances product availability and freshness. The company also engages in advertising and promotional services for brands looking to reach its customer base, creating another revenue stream. The use of data analytics to optimize inventory and pricing strategies further contributes to its profitability by improving sales efficiency and customer satisfaction.

111 Financial Statement Overview

Summary

Financials are weak: revenue is declining (TTM -1.52%), profitability remains negative (negative net/EBIT/EBITDA margins), and the balance sheet is unstable with negative stockholders’ equity and a negative equity ratio. Cash flow is mixed—free cash flow fell sharply (TTM -61.38%), though operating cash flow conversion versus net income is positive.

Income Statement

The income statement reveals a challenging financial position with declining revenue and negative profit margins. The TTM data shows a revenue decrease of 1.52%, and net profit margins remain negative, indicating ongoing losses. Despite a slight improvement in gross profit margin to 5.05% in the TTM, the company struggles with profitability, as evidenced by negative EBIT and EBITDA margins.

Balance Sheet

The balance sheet indicates financial instability with negative stockholders' equity and a concerning debt-to-equity ratio of -0.30 in the TTM. Although the return on equity has improved, it remains positive due to negative equity, which is not a sustainable position. The equity ratio is also negative, reflecting the company's reliance on debt financing.

Cash Flow

Cash flow analysis shows a significant decline in free cash flow growth by 61.38% in the TTM, highlighting cash management challenges. However, the operating cash flow to net income ratio is positive, suggesting some ability to generate cash from operations despite net losses. The free cash flow to net income ratio is close to 1, indicating that the company is converting its losses into cash flow effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.18B	14.40B	14.95B	13.52B	12.43B	8.20B
Gross Profit	703.37M	829.23M	448.44M	839.98M	621.10M	365.83M
EBITDA	10.56M	24.62M	-311.26M	-321.81M	-588.32M	-459.29M
Net Income	-74.15M	-64.74M	-392.69M	-416.88M	-669.81M	-456.53M
Balance Sheet
Total Assets	2.48B	2.79B	3.09B	3.47B	3.15B	3.03B
Cash, Cash Equivalents and Short-Term Investments	447.47M	462.29M	653.67M	879.53M	843.95M	1.49B
Total Debt	212.93M	256.77M	443.23M	344.19M	491.01M	329.35M
Total Liabilities	2.15B	2.41B	2.81B	2.83B	2.30B	1.70B
Stockholders Equity	-673.07M	-642.64M	-583.45M	-414.60M	-173.32M	357.40M
Cash Flow
Free Cash Flow	97.31M	247.82M	-457.07M	-54.73M	-751.53M	-142.28M
Operating Cash Flow	112.51M	263.02M	-447.24M	-23.15M	-688.84M	-116.78M
Investing Cash Flow	86.05M	37.38M	151.74M	-47.17M	60.14M	-324.67M
Financing Cash Flow	-200.60M	-406.24M	205.98M	22.73M	74.34M	1.07B

111 Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YI, the sentiment is Positive. The current price of 2.85 is below the 20-day moving average (MA) of 6.95, below the 50-day MA of 4.99, and below the 200-day MA of 5.88, indicating a bullish trend. The MACD of 0.96 indicates Negative momentum. The RSI at 74.47 is Negative, neither overbought nor oversold. The STOCH value of 84.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YI.

111 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RNTX	53 Neutral	$29.18M	-0.42	-83.28%	―	―	15.35%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
YI	48 Neutral	$71.23M	-7.39	―	―	-7.46%	73.05%
ELUT	48 Neutral	$51.24M	-1.22	―	―	-14.92%	72.81%
NEUP	48 Neutral	$23.83M	-0.18	-59.91%	―	―	―
DYAI	46 Neutral	$29.37M	-3.38	-244.15%	―	-0.66%	-8.43%
RMTI	42 Neutral	$41.38M	-6.33	-16.67%	―	-23.60%	-179.33%

111 Corporate Events

111, Inc. Reports Q3 2025 Profitability amid Strategic Asset-Light Transition

111, Inc. announced its unaudited financial results for Q3 2025, achieving non-GAAP net profitability for the third consecutive quarter and generating positive operating cash flow. The company has transitioned to an asset-light business model, divesting self-operated subsidiaries while retaining their service capabilities as fulfillment partners. Despite a decline in revenues by 16.7% year-on-year, 111 has improved operational efficiency through its ‘MANTIANXING’ initiative, enhancing supply chain capabilities, customer count, and gross merchandise value. This strategic realignment strengthens liquidity and profitability, with plans to further leverage AI technology to build an advanced platform for pharmaceutical transactions.

The most recent analyst rating on (YI) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on 111 stock, see the YI Stock Forecast page.