111 (YI) AI Stock Analysis

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111 (NASDAQ:YI)

Rating:44Neutral

Price Target:

$7.00

▲(1.30% Upside)

The overall stock score is driven primarily by significant financial performance challenges, including negative equity and net income. While cash flow has seen improvements, the company's valuation remains unattractive due to a negative P/E ratio. Technical analysis presents a neutral outlook, suggesting neither strong bullish nor bearish trends.

111 (YI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$59.38M

Dividend YieldN/A

Average Volume (3M)9.63K

Price to Earnings (P/E)―

Beta (1Y)0.46

Revenue Growth-3.15%

EPS Growth82.04%

CountryUS

Employees1,238

SectorHealthcare

Sector Strength38

IndustryMedical - Pharmaceuticals

Share Statistics

EPS (TTM)-0.28

Shares Outstanding5,067,436

10 Day Avg. Volume7,591

30 Day Avg. Volume9,625

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap2.74

Enterprise Value/Revenue0.01

Enterprise Value/Gross Profit0.22

Enterprise Value/Ebitda21.30

Forecast

1Y Price Target

$8.00

Price Target Upside15.77% Upside

Rating ConsensusHold

Number of Analyst Covering0

111 Business Overview & Revenue Model

Company Description111, Inc., also known as YI, is a leading digital healthcare platform operating in China. The company specializes in providing online retail and wholesale of pharmaceuticals, health and wellness products, and medical services. Through its comprehensive e-commerce solutions, 111, Inc. connects consumers with an extensive range of pharmaceutical products, promoting accessibility and convenience in obtaining healthcare essentials.

How the Company Makes Money111, Inc. generates revenue primarily through its online retail and wholesale pharmaceutical business. The company operates an e-commerce platform that allows consumers to purchase a wide array of health-related products, including prescription and over-the-counter medications, as well as wellness and personal care items. Additionally, 111, Inc. collaborates with healthcare professionals and institutions to offer online medical consultations and services, further diversifying its income streams. Strategic partnerships with pharmaceutical manufacturers and healthcare providers enhance its product offerings and market reach, contributing to revenue growth.

111 Earnings Call Summary

Earnings Call Date:Jun 19, 2025

(Q4-2024)

% Change Since: -37.18%|

Next Earnings Date:Aug 21, 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 financial challenges with sustained net losses and negative equity. Despite improvements in cash flow and consistent revenue growth, profitability and leverage issues remain significant risks.

Income Statement

Neutral

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.

Balance Sheet

Negative

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.

Cash Flow

Neutral

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.

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

Technical Analysis Sentiment

Negative

Last Price6.91

Price Trends

50DMA

7.62

Negative

100DMA

7.94

Negative

200DMA

7.51

Negative

Market Momentum

MACD

-0.20

Positive

RSI

33.34

Neutral

STOCH

27.81

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 6.91 is below the 20-day moving average (MA) of 7.28, below the 50-day MA of 7.62, and below the 200-day MA of 7.51, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 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

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

It may be difficult for regulators to conduct cross-border investigation. Q4, 2023

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 (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PETS	53 Neutral	$65.27M	300.93	0.36%	―	-10.82%	―
Sector *	50 Neutral	AU$2.60B	3.65	-58.14%	2.69%	36.37%	13.78%
AKYA	49 Neutral	$64.44M	―	-354.27%	―	-14.55%	34.87%
YI	44 Neutral	$59.38M	―	40.55%	―	-3.15%	82.04%
IVVD	44 Neutral	$86.86M	―	-122.69%	―	―	20.91%
INZY	37 Underperform	$258.25M	―	-141.69%	―	―	-17.06%
JSPR	35 Underperform	$44.77M	―	-101.34%	―	―	21.40%

* Healthcare Sector Average

Performance Comparison

111

6.87

-4.03

-36.97%

PETS

Petmed Express

3.16

0.00

0.00%

JSPR

Jasper Therapeutics

2.98

-13.29

-81.68%

INZY

Inozyme Pharma

4.00

-0.31

-7.19%

AKYA

Akoya Biosciences

1.29

-0.67

-34.18%

IVVD

Invivyd

0.72

-0.28

-28.00%

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.Date of analysis: Jul 23, 2025