So-Young International Inc. (NASDAQ: SY)

Sector: Healthcare Industry: Health Information Services CIK: 0001758530
Market Cap 274.38 Mn
P/B 1.17
P/E -2.64
P/S 1.36
ROIC (Qtr) -281.96
Div Yield % 1.12
Rev 1y % (Qtr) 3.99
Total Debt (Qtr) 37.30 Mn
Debt/Equity (Qtr) 0.16

About

So-Young International Inc. (SY), a leading social community in the medical aesthetics industry, operates a platform that connects consumers, professionals, and service providers. The company, headquartered in Beijing, China, was established in 2013 and is listed on the Nasdaq stock exchange. So-Young's primary business activity involves providing a platform where users can discover, learn about, and book medical aesthetic treatments. The company's platform boasts a range of features, including original content, user-generated content, professional-generated...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 132.42M provide 8.93x coverage of short-term debt 14.83M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 352.80M provides 9.46x coverage of total debt 37.30M, indicating robust asset backing and low credit risk.
  • Tangible assets of 352.80M provide exceptional 33.15x coverage of deferred revenue 10.64M, showing strong service capability backing.
  • Cash position of 132.42M provides exceptional 3416.03x coverage of minority interest expenses 38764.04, indicating strong liquidity.
  • Robust tangible asset base of 352.80M provides 3.11x coverage of working capital 113.45M, indicating strong operational backing.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 19.99M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 0 provides insufficient coverage of deferred revenue obligations of 10.64M, which is 0x, raising concerns about future service delivery capabilities.
  • Operating cash flow of 0 provides minimal 0x coverage of tax expenses of 497331.46, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (148.85M) provide limited buffer against comprehensive income items of 2.93M, which is -50.77x, indicating elevated exposure to market risks.
  • Operating cash flow of 0 barely covers operating expenses of 75.84M with a 0 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Health Information Services
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 TEM Tempus AI, Inc. 45.63 Bn -223.83 41.29 1.34 Bn
2 GEHC GE HealthCare Technologies Inc. 38.75 Bn 19.85 2.19 10.28 Bn
3 VEEV Veeva Systems Inc 37.30 Bn 43.36 12.11 0.09 Bn
4 DOCS Doximity, Inc. 7.81 Bn 30.87 12.57 0.01 Bn
5 BTSG BrightSpring Health Services, Inc. 7.70 Bn 59.42 0.62 2.70 Bn
6 HQY Healthequity, Inc. 7.32 Bn 38.14 5.67 1.03 Bn
7 WAY Waystar Holding Corp. 5.00 Bn 44.97 4.81 1.25 Bn
8 PRVA Privia Health Group, Inc. 2.79 Bn 153.67 1.37 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.19 2.77
EV to Cash from Ops. EV/CFO 20.03 -10.86
EV to Debt EV to Debt -1.89 161.93
EV to EBIT EV/EBIT 0.68 -106.48
EV to EBITDA EV/EBITDA 0.97 4.22
EV to Free Cash Flow [EV/FCF] EV/FCF 5.83 7.46
EV to Market Cap EV to Market Cap -0.26 -14.93
EV to Revenue EV/Rev -0.35 1.76
Price to Book Value [P/B] P/B 1.17 10.57
Price to Earnings [P/E] P/E -2.64 147.14
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -8.65
Dividend Payout Ratio % Div Payout % (Qtr) -2.60 5.00
Dividend per Basic Share Div per Share (Qtr) 0.03 0.04
FCF Dividend Payout Ratio % FCF Dividend Payout Ratio % 0.00 4.57
Interest Coverage Interest Coverage 0.00 -584.72
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -24.09
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -24.73 172.48
Dividend Growth (1y) % Div 1y % (Qtr) -56.67 -1.05
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2,184.47 -17.73
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 39.85
EBIT Growth (1y) % EBIT 1y % (Qtr) -3,501.07 -38.83
EBT Growth (1y) % EBT 1y % (Qtr) -3,501.07 -4.52
EPS Growth (1y) % EPS 1y % (Qtr) -2,191.91 2.60
FCF Growth (1y) % FCF Growth (1y) % 0.00 -48.57
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -21.03 5.49
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.08 0.66
Cash Payout Ratio Cash Payout Ratio 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 1.40 1.87
Current Ratio Curr Ratio (Qtr) 2.20 3.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 -0.43
Interest Cover Ratio Interest Cover Ratio 0.00 -584.72
Times Interest Earned Times Interest Earned 0.00 -584.72
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -435.80
EBIT Margin % EBIT Margin % (Qtr) -366.71 -464.70
EBT Margin % EBT Margin % (Qtr) -51.50 -461.74
Gross Margin % Gross Margin % (Qtr) 51.60 44.03
Net Profit Margin % Net Margin % (Qtr) -51.80 -468.01