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111 Inc (YI)
NASDAQ:YI
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111
(NASDAQ:YI)
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Rating:40Underperform
Price Target:
$5.00
▼(-15.54% Downside)
The overall stock score reflects significant financial and technical challenges. The company's negative equity and ongoing losses are major concerns, compounded by bearish technical indicators. The lack of profitability and absence of a dividend yield further weigh on the valuation.
111 (YI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$51.17M
Dividend YieldN/A
Average Volume (3M)17.79K
Price to Earnings (P/E)―
Beta (1Y)0.51
Revenue Growth-3.15%
EPS Growth82.04%
CountryUS
Employees1,238
SectorHealthcare
Sector Strength45
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-0.31
Shares Outstanding5,067,436
10 Day Avg. Volume26,063
30 Day Avg. Volume17,794
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)-0.61
Price to Sales (P/S)0.03
P/FCF Ratio1.58
Enterprise Value/Market Cap3.18
Enterprise Value/Revenue0.01
Enterprise Value/Gross Profit0.22
Enterprise Value/Ebitda21.30
Forecast
1Y Price Target
$5.00Price Target Upside-15.54% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering1
111 Business Overview & Revenue Model
Company Description111 (YI) is a leading e-commerce platform in China, primarily focused on the online retail of fresh produce, groceries, and other consumer goods. The company operates in the online marketplace sector, connecting consumers with a wide range of products, including food, electronics, and household items. Leveraging advanced logistics and technology, 111 aims to provide customers with a seamless shopping experience and fast delivery services.
How the Company Makes Money111 generates revenue primarily through the sale of products on its e-commerce platform. The company earns money from direct sales of goods, where it purchases products from suppliers and sells them to consumers at a markup. Additionally, 111 has developed a marketplace model where third-party sellers can list their products on the platform, allowing the company to earn commission fees on each sale made by these sellers. Other significant revenue streams may include subscription services for premium memberships, advertising fees from brands seeking visibility on the platform, and partnerships with suppliers and manufacturers that may involve revenue-sharing agreements. The company's strategic collaborations with logistics providers also help optimize delivery efficiency, further enhancing their operational profitability.
111 Earnings Call Summary
Earnings Call Date:Sep 17, 2025
(Q4-2024)
| % Change Since: |
Next Earnings Date:Nov 27, 2025
Earnings Call Sentiment Positive
The earnings call demonstrates significant achievements in operational profitability and cost reduction despite challenging macroeconomic conditions and regulatory changes. The company's advancements in technology and supply chain expansion position it well for future growth, though market and competitive pressures remain.Q4-2024 Updates
Positive Updates
First Ever Operational Profitability
111 achieved its first ever operational profitability and positive operating cash flow in 2024, marking a significant milestone in the company's history.
Reduction in Operating Expenses
Total operating expenses decreased by 50.1% to RMB209.8 million in Q4 and by 31% for the full year, highlighting significant improvements in operational efficiency.
Advanced AI and Digital Capabilities
The company integrated leading technologies across operations, improving efficiency with AI-driven solutions and a fully digitized operating system.
Expansion of Fulfillment Centers
111 expanded its supply chain infrastructure with seven new fulfillment centers, increasing delivery efficiency and reducing costs.
Market Leadership and Industry Recognition
111 received multiple industry recognitions, including being named the most valuable healthcare and pharmaceutical company for investment.
Negative Updates
Macroeconomic Challenges in China
Economic uncertainties and healthcare reforms in China have led to cautious consumer behavior, affecting retail sales and healthcare expenditure growth.
Decline in Retail Pharmacy Sales
Total retail pharmacy sales in China dropped by 2.2% in 2024 due to aggressive expansion during the pandemic and increased competition.
Challenges from Regulatory Changes
Ongoing healthcare reforms present short-term challenges as pharmacies adapt to new policies and regulatory frameworks.
Fulfillment Expense Increase
Fulfillment expenses rose slightly as a percentage of revenues due to a one-time warehouse relocation fee.
Company Guidance
During the conference call held on March 20, 2025, the management of 111 provided insights into their fiscal year 2024 performance and future outlook. Despite macroeconomic challenges and healthcare reforms impacting the industry, 111 achieved its first-ever operational profitability and positive operating cash flow. The company reduced operating expenses by 31% year-over-year, bringing them down to 5.7% of revenues. Key financial highlights included a yearly profit from operations of RMB2.1 million, a turnaround from a RMB350.1 million operational loss in 2023, and a non-GAAP income from operations of RMB22.3 million. The company also highlighted advancements in technology and supply chain infrastructure, such as their decentralized inventory network and AI-driven demand forecasting, which significantly improved operational efficiency. Looking ahead, 111 plans to leverage AI and digital transformation to enhance customer engagement and operational efficiency, aiming to capitalize on China's evolving healthcare market and structural trends like the aging population and healthcare transparency reforms.111 Financial Statement Overview
Summary
The company faces significant financial challenges, with sustained net losses and negative equity. Despite recent improvements in cash flow, profitability and leverage issues remain critical concerns. Consistent revenue growth is a positive, but it must lead to operational profitability to enhance financial health.Income Statement
The company has experienced fluctuating revenue growth with significant negative net income, indicating profitability challenges. Notably, the revenue grew from 2019 to 2023, but the net profit margins have been consistently negative, suggesting operational inefficiencies and challenges in cost management. The EBIT and EBITDA margins are also negative, highlighting issues in core and operational profitability.45
Neutral
Balance Sheet
The balance sheet reveals a concerning situation with negative stockholders' equity, indicating financial instability and potential solvency issues. The debt-to-equity ratio cannot be calculated due to negative equity, but the high liabilities compared to assets suggest leverage risks. With equity being negative, the company lacks financial resilience, which is a significant risk factor.30
Negative
Cash Flow
Cash flow from operations has improved in recent periods, showing positive free cash flow in 2023 and 2024, reflecting better cash management despite operational losses. However, historical negative free cash flow and considerable financing requirements in previous years highlight ongoing liquidity challenges. The operating cash flow to net income ratio indicates better cash conversion, but sustainability remains a concern.50
Neutral
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.40B | 14.95B | 13.52B | 12.43B | 8.20B |
| Gross Profit | 829.23M | 448.44M | 839.98M | 621.10M | 365.83M |
| EBITDA | 24.62M | -311.26M | -330.18M | -614.92M | -459.29M |
| Net Income | -64.74M | -392.69M | -408.50M | -662.97M | -459.04M |
Balance Sheet | |||||
| Total Assets | 2.79B | 3.09B | 3.47B | 3.15B | 3.03B |
| Cash, Cash Equivalents and Short-Term Investments | 462.29M | 653.67M | 879.53M | 843.95M | 1.49B |
| Total Debt | 256.77M | 443.23M | 279.46M | 425.27M | 291.64M |
| Total Liabilities | 2.41B | 2.81B | 2.83B | 2.30B | 1.70B |
| Stockholders Equity | -642.64M | -583.45M | -414.60M | -173.32M | 357.40M |
Cash Flow | |||||
| Free Cash Flow | 247.82M | -457.07M | -54.73M | -704.63M | -142.28M |
| Operating Cash Flow | 263.02M | -447.24M | -23.15M | -641.94M | -116.78M |
| Investing Cash Flow | 37.38M | 151.74M | -47.17M | 60.14M | -324.67M |
| Financing Cash Flow | -406.24M | 205.98M | 22.73M | 27.44M | 1.07B |
111 Technical Analysis
Negative
5.92
Price Trends
6.82
Negative
7.38
Negative
7.42
Negative
Market Momentum
-0.30
Positive
42.42
Neutral
44.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YI, the sentiment is Negative. The current price of 5.92 is below the 20-day moving average (MA) of 6.38, below the 50-day MA of 6.82, and below the 200-day MA of 7.42, indicating a bearish trend. The MACD of -0.30 indicates Positive momentum. The RSI at 42.42 is Neutral, neither overbought nor oversold. The STOCH value of 44.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YI.
111 Risk Analysis
111 disclosed 83 risk factors in its most recent earnings report. 111 reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If the PCAOB is prevented from fully evaluating audits and quality control procedures of our auditor, investors may be deprived of the benefits of such PCAOB inspections. Q4, 2023
2.
It may be difficult for regulators to conduct cross-border investigation. Q4, 2023
3.
An outbreak of disease or similar public health threat, or fear of such an event, could have a material adverse impact on our business, operating results and financial condition Q4, 2023
111 Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
53 Neutral | 58.04M | 262.62 | 0.00% | ― | -10.82% | 0.00% | |
44 Neutral | 249.54M | -1.39 | 0.00% | ― | 1941.08% | 48.93% | |
40 Underperform | $51.17M | ― | 40.55% | ― | -3.15% | 82.04% | |
35 Underperform | 38.68M | -0.40 | 0.00% | ― | 0.00% | -17.96% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
YI
111
6.03
0.07
1.17%
PETS
Petmed Express
2.82
-0.80
-22.10%
JSPR
Jasper Therapeutics
2.43
-20.31
-89.31%
INZY
Inozyme Pharma
4.00
-1.81
-31.15%
IVVD
Invivyd
1.26
0.09
7.69%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.