111 (YI) AI Stock Analysis

• Market Cap: $49.79M
• Dividend Yield: N/A
• Average Volume (3M): 22.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• 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: 4.20
• Enterprise Value/Revenue: 0.01
• Enterprise Value/Gross Profit: 0.30
• Enterprise Value/Ebitda: 19.83
• 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: 44 Neutral
• Price Target: $5.50 ▲(92.98% Upside)

The score is primarily weighed down by weak financial performance, including ongoing losses and negative equity, with additional pressure from limited valuation support due to negative earnings. Technicals provide some offset from recent upward price trends, but overbought signals and weakness versus the 200-day average temper the benefit.

Positive Factors

Asset-light strategic shift

Moving to an asset-light model reduces capital intensity and fixed costs, improving long-term liquidity and return on invested capital. Retaining fulfillment partners preserves service capacity while enabling faster scaling and focus on platform and AI capabilities over heavy operational assets.

Positive operating cash flow

Consistent positive operating cash flow despite net losses indicates the core e-commerce operations generate cash. This provides durable support for working capital, funds strategic investments, and reduces near-term financing dependence while management executes restructuring.

Improving profitability trends

Achieving consecutive non-GAAP profitability demonstrates improving unit economics and operational leverage from efficiency programs (e.g., MANTIANXING). Sustained non-GAAP profits suggest a structural improvement in cost structure and platform monetization over the medium term.

Negative Factors

Negative stockholders' equity

Negative equity signals liabilities exceed assets, constraining financing flexibility and increasing refinancing risk. Over months, this impairs the company's ability to absorb shocks, limits access to capital markets, and may force dilutive financing or asset disposals to restore solvency.

Sustained revenue decline

Multi-period revenue decline reduces scale benefits and weakens marketplace network effects. Over 2-6 months, shrinking top line pressures gross merchandise volume, vendor relationships, and margin recovery efforts, making profitability and platform investments harder to sustain.

Severe free cash flow contraction

A ~61% drop in free cash flow materially restricts capacity to reinvest in technology, marketing, and supply chain improvements. Persistently depressed FCF raises liquidity risk, may force asset-light monetization or cost cuts, and undermines durable funding for strategic initiatives.

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

The financial performance is weak, with declining revenues, negative profit margins, and negative equity. Despite some positive cash flow indicators, the overall financial health is precarious.

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: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 3.43, below the 50-day MA of 3.68, and below the 200-day MA of 5.99, indicating a neutral trend. The MACD of 0.33 indicates Negative momentum. The RSI at 79.64 is Negative, neither overbought nor oversold. The STOCH value of 78.64 is Neutral, 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
NEUP	52 Neutral	$21.72M	-0.17	-59.91%	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
RNTX	48 Neutral	$29.44M	-0.44	-83.28%	―	―	15.35%
ELUT	48 Neutral	$36.04M	-0.89	―	―	-14.92%	72.81%
DYAI	46 Neutral	$31.83M	-3.76	-244.15%	―	-0.66%	-8.43%
YI	44 Neutral	$49.79M	-5.11	―	―	-7.46%	73.05%
RMTI	42 Neutral	$37.73M	-5.96	-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.