Yunji (YJ) AI Stock Analysis

• Market Cap: $8.42M
• Dividend Yield: N/A
• Average Volume (3M): 16.71K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.22
• Revenue Growth: -35.95%
• EPS Growth: 26.08%
• Country: US
• Employees: 363
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.05
• Shares Outstanding: 2,550,640
• 10 Day Avg. Volume: 4,683
• 30 Day Avg. Volume: 16,707
• PEG Ratio: 0.02
• Price to Book (P/B): 0.05
• Price to Sales (P/S): 0.14
• P/FCF Ratio: -0.18
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 41 Neutral
• Price Target: $1.50 ▼(-17.58% Downside)

Yunji's overall stock score is primarily impacted by its poor financial performance, characterized by declining revenues and unprofitability. Technical analysis and valuation further underscore the challenges, with weak momentum and unattractive valuation metrics. While the earnings call provided some positive strategic insights, the financial difficulties remain a significant concern.

Yunji Business Overview & Revenue Model

Company Description

Yunji (YJ) is a leading social e-commerce platform based in China, focusing on providing a unique shopping experience through a combination of direct selling and community-based marketing. The company primarily targets consumers in lower-tier cities, offering a wide range of products, including groceries, household items, beauty products, and more. Yunji leverages technology to facilitate user engagement and offers a membership model that enhances customer loyalty and incentivizes repeat purchases.

How the Company Makes Money

Yunji generates revenue through multiple streams, primarily via its membership fees, which offer exclusive discounts and benefits to users. Additionally, the company earns money through product sales on its platform, where it acts as a distributor for various brands. The social commerce model allows Yunji to benefit from commissions on sales made through its network of user influencers who promote products to their communities. Strategic partnerships with suppliers and brands further enhance its product offerings and can lead to revenue-sharing arrangements. The combination of these revenue streams, along with a growing user base, contributes significantly to Yunji's earnings.

Yunji Financial Statement Overview

Summary

Yunji's financial health is concerning, marked by declining revenues, consistent unprofitability, and poor cash flow management. Despite a stable balance sheet with low leverage, the company's inability to generate profit or positive cash flow presents significant risks.

Income Statement

Yunji has experienced significant revenue decline from 2019 to 2024, with a sharp decrease in total revenue from 11.67 billion to 417.65 million. Gross profit margin has weakened over time, reflecting reduced operational efficiency. Notably, the company has consistently reported negative EBIT and net income, indicating ongoing unprofitability. The revenue growth rate has been negative, which is a major concern for potential investors.

Balance Sheet

The balance sheet shows a high equity base with an equity ratio of approximately 80%, indicating financial stability. However, the persistent negative net income has resulted in a declining return on equity over the years. The company maintains low debt levels, reflected in a favorable debt-to-equity ratio, which suggests limited financial risk from leverage. Despite these strengths, the erosion of equity due to continuous losses is a concern.

Cash Flow

Yunji's cash flow statement highlights poor cash flow management, with consistent negative operating and free cash flow, indicating a lack of internal cash generation capacity. The free cash flow has deteriorated significantly over the years, raising sustainability concerns. Additionally, the negative operating cash flow to net income ratio suggests inefficiencies in converting revenue to cash, further emphasizing liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	779.75M	417.65M	640.21M	1.15B	2.16B	5.53B
Gross Profit	356.02M	206.34M	307.44M	502.54M	811.98M	1.59B
EBITDA	-73.60M	-103.53M	-141.07M	-93.59M	18.65M	-65.39M
Net Income	-130.60M	-123.11M	-165.13M	-131.34M	131.97M	-147.86M
Balance Sheet
Total Assets	1.67B	1.35B	1.55B	1.89B	2.35B	2.55B
Cash, Cash Equivalents and Short-Term Investments	528.93M	219.37M	524.74M	626.64M	947.26M	1.20B
Total Debt	18.56M	11.65M	14.50M	1.31M	8.69M	15.30M
Total Liabilities	406.81M	274.41M	362.69M	536.51M	871.46M	1.24B
Stockholders Equity	1.27B	1.08B	1.19B	1.36B	1.48B	1.31B
Cash Flow
Free Cash Flow	0.00	-318.62M	-200.67M	-309.08M	-112.97M	-345.92M
Operating Cash Flow	0.00	-126.08M	-188.26M	-216.82M	-25.99M	-261.51M
Investing Cash Flow	0.00	-166.33M	294.04M	92.56M	-513.79M	551.01M
Financing Cash Flow	0.00	-13.32M	-25.33M	-94.56M	-463.00K	-13.88M

Yunji Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YJ, the sentiment is Negative. The current price of 1.82 is below the 20-day moving average (MA) of 1.86, below the 50-day MA of 1.90, and above the 200-day MA of 1.79, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 18.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YJ.

Yunji Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BZUN	51 Neutral	$187.84M	―	-4.73%	―	7.91%	30.18%
JWEL	45 Neutral	$3.21M	-0.40	―	―	-16.89%	31.24%
WNW	44 Neutral	$5.07M	0.18	12.11%	―	570.49%	―
YJ	41 Neutral	$8.42M	―	―	―	-35.95%	26.08%
MOGU	40 Underperform	$21.91M	-2.71	-11.43%	―	-12.53%	-3.24%
WBUY	40 Underperform	$2.86M	-0.20	-373.22%	―	-39.99%	-26.44%

Yunji Corporate Events

Yunji Reports First Half 2025 Financial Results Amid Strategic Shift

Yunji Inc. reported its unaudited financial results for the first half of 2025, showing a decline in total revenues to RMB158.3 million from RMB233.8 million in the same period of 2024. The decrease is attributed to soft consumer confidence and a strategic refinement of product selection and supplier optimization. Despite the revenue drop, Yunji is focusing on strategic transformation to become a trusted advocate for organic living, expanding user acquisition through online and offline channels. The company also reported an increase in operating expenses and a net loss of RMB100.7 million, compared to RMB8.0 million in the first half of 2024, while continuing to optimize its cost structure and drive profitability.