111, Inc. (NASDAQ: YI)

Sector: Healthcare Industry: Medical Distribution CIK: 0001738906
Market Cap 68.83 Mn
P/B -0.74
P/E -7.00
P/S 0.04
ROIC (Qtr) 14.89
Div Yield % 0.00
Rev 1y % (Qtr) -16.66
Total Debt (Qtr) 28.75 Mn
Debt/Equity (Qtr) -0.31
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About

111, Inc., also known as YI, is a prominent player in China's healthcare industry, specifically in the online retail pharmacy and medical services sectors. Since its inception in 2010, the company has established itself as one of the leading digital healthcare platforms in China. 111, Inc.'s primary business activities revolve around operating an online retail pharmacy, offering medical services through its internet hospital, and providing wholesale pharmacy services to various healthcare entities. The company generates revenue mainly from the...

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Investment thesis

Bull case

  • Healthy cash reserves of 74.09M provide 3.10x coverage of short-term debt 23.88M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 348.51M provides 12.12x coverage of total debt 28.75M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 3.65M exceeds capital expenditure of 2.07M by 1.76x, indicating strong organic growth funding capability.
  • Robust tangible asset base of 348.51M provides 15.34x coverage of working capital 22.72M, indicating strong operational backing.
  • Operating cash flow of 5.72M fully covers other non-current liabilities 306320.22 by 18.67x, showing strong long-term stability.

Bear case

  • Investment activities of 875280.90 provide weak support for R&D spending of 8.57M, which is 0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Retained earnings of (552.55M) provide limited buffer against comprehensive income items of 10.26M, which is -53.86x, indicating elevated exposure to market risks.
  • Cash position of 74.09M provides weak coverage of payables of 217.74M, which is 0.34x, indicating potential working capital stress and supplier relationship risks.
  • Operating cash flow of 5.72M barely covers operating expenses of 51.36M with a 0.11 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of 5.72M shows concerning coverage of minority interest expenses of 5.82M, which is 0.98x, suggesting complex corporate structure risks.

Peer comparison

Companies in the Medical Distribution
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MCK Mckesson Corp 117.90 Bn 27.17 0.30 8.62 Bn
2 CAH Cardinal Health Inc 80.96 Bn 103.48 0.82 9.03 Bn
3 COR Cencora, Inc. 79.51 Bn 93.02 0.52 7.92 Bn
4 HSIC Henry Schein Inc 9.46 Bn 24.20 0.73 3.44 Bn
5 AHG Akso Health Group 0.37 Bn -2.71 24.79 0.00 Bn
6 EDAP Edap Tms Sa 0.17 Bn -7.47 2.30 0.01 Bn
7 QIPT Quipt Home Medical Corp. 0.17 Bn -15.61 0.63 0.11 Bn
8 EMPG Empro Group Inc. 0.12 Bn 157.82 21.62 -

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.05 1.06
EV to Cash from Ops. EV/CFO 2.86 13.08
EV to Debt EV to Debt 0.57 282.28
EV to EBIT EV/EBIT -2.87 6.31
EV to EBITDA EV/EBITDA 1.76 12.22
EV to Free Cash Flow [EV/FCF] EV/FCF 4.48 15.66
EV to Market Cap EV to Market Cap 0.24 1.21
EV to Revenue EV/Rev 0.01 1.87
Price to Book Value [P/B] P/B -0.74 11.46
Price to Earnings [P/E] P/E -7.00 34.37
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.22
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.88
Dividend per Basic Share Div per Share (Qtr) 0.00 0.67
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 2.23
Interest Coverage Int. cover (Qtr) -1.37 60.87
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -80.34 -12,260.13
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.53 27.05
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 82.12 -177.28
EBITDA Growth (1y) % EBITDA Growth (1y) % 0.00 368.76
EBIT Growth (1y) % EBIT 1y % (Qtr) 82.11 -206.06
EBT Growth (1y) % EBT 1y % (Qtr) 72.55 -173.08
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -21.54
FCF Growth (1y) % FCF 1y % (Qtr) -75.57 -218.00
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -9.51 15.84
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.77 1.93
Cash Payout Ratio Cash Payout Ratio 0.00 0.06
Cash Ratio Cash Ratio (Qtr) 0.24 0.22
Current Ratio Curr Ratio (Qtr) 1.07 1.54
Debt to Equity Ratio Debt/Equity (Qtr) -0.31 -0.33
Interest Cover Ratio Int Coverage (Qtr) -1.37 60.87
Times Interest Earned Times Interest Earned (Qtr) -1.37 60.87
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -94.80
EBIT Margin % EBIT Margin % (Qtr) -2.12 -102.39
EBT Margin % EBT Margin % (Qtr) -0.52 -105.05
Gross Margin % Gross Margin % (Qtr) 5.60 23.37
Net Profit Margin % Net Margin % (Qtr) -0.50 -86.72