111 Intrinsic Value – 111 Reports $502.4M Revenue Despite Non-GAAP EPADS of -$0.12
December 1, 2023
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111 ($NASDAQ:YI) Inc. reported its latest quarterly results on Wednesday, revealing a Non-GAAP Earnings Per Average Diluted Share of -$0.12, with revenue coming in at $502.4 million. 111 Inc. is a Chinese healthcare technology and services platform which focuses on innovations in pharmacy retail, online medicine services, and health insurance services. The company’s performance was impacted by the macroeconomic environment, as well as the impact of the coronavirus pandemic. Despite the challenging conditions, 111 Inc. managed to record revenues that were higher than analyst expectations.
This result demonstrates the resilience of the company’s business model and its ability to find new opportunities for growth in spite of the difficult environment. Overall, despite a Non-GAAP Earnings Per Average Diluted Share of -$0.12, 111 Inc. managed to post strong revenue of $502.4 million due to their resilient business model and adapted strategies in light of the pandemic.
Earnings
In 111’s most recent earnings report for FY2023 Q3 as of September 30 2021, the company reported a total revenue of 3346.23M CNY, a 0.1% decrease compared to the previous year. Despite this decrease, 111 managed to increase its total revenue from 3346.23M CNY to 3665.24M CNY in the last three years. Despite this revenue growth, 111 reported a Non-GAAP EPADS of -$0.12 and a net income loss of 252.86M CNY, bringing the total reported to $502.4M.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for 111. More…
| Total Revenues | Net Income | Net Margin |
| 14.99k | -296.76 | -2.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for 111. More…
| Operations | Investing | Financing |
| -187.02 | -26.29 | 226.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for 111. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.36k | 3.05k | -6.11 |
Key Ratios Snapshot
Some of the financial key ratios for 111 are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.5% | – | -1.6% |
| FCF Margin | ROE | ROA |
| -1.5% | 30.6% | -4.4% |
Share Price
On Thursday, 111 reported $502.4M in revenue for the quarter despite a non-GAAP EPADS of -$0.12. As a result, the stock opened at $2.1 and closed at $2.0, a drop of 7.4% from its prior closing price of $2.2. This represents a significant decrease, with 111’s stock taking a hit due to its lower-than-expected performance. Despite the disappointing results, investors are hoping that the company will find ways to improve its financials in order to increase shareholder value in the future. Live Quote…
Analysis – 111 Intrinsic Value
GoodWhale has conducted an in-depth analysis of 111‘s finances and we are pleased to present our findings. According to our proprietary Valuation Line, the fair value of 111 share is estimated to be around $5.0. This means that the current stock price of $2.0 is significantly undervalued by 60.2%. Therefore, we believe now is an opportune time for investors to buy and hold 111 shares. More…
Peers
The company has a strong presence in the Chinese healthcare market and competes with other leading players such as China Jo-Jo Drugstores Inc, Health Advance Inc and Zur Rose Group AG. These companies are all well established providers of healthcare services, offering their respective customers a variety of products and services to choose from.
– China Jo-Jo Drugstores Inc ($NASDAQ:CJJD)
China Jo-Jo Drugstores Inc is a leading Chinese national retail drugstore chain that was founded in 2002. It is one of the largest retail drugstore chains in China, with more than 2,000 stores and sales outlets in over 200 cities across the country. As of 2022, the company has a market capitalization of 33.72M. Its Return on Equity (ROE) stands at -4.61%, indicating that the company is not generating a positive return on its shareholders’ investments. Despite this, China Jo-Jo Drugstores Inc’s strong presence in the Chinese market and its aggressive expansion plans make it an attractive investment option.
– Health Advance Inc ($OTCPK:HADV)
Health Advance Inc is a healthcare provider specializing in providing comprehensive and quality care to its patients. The company’s market capitalization stands at 984.94k as of 2022, which reflects its growth and stability in the industry. Its Return on Equity (ROE) of 57.91% is indicative of the company’s efficient use of its assets and capital to generate profits. Health Advance Inc’s impressive market cap and ROE are a testament to its continued success in providing quality care to its patients.
– Zur Rose Group AG ($LTS:0RRB)
Zur Rose Group AG is a Swiss e-commerce and mail-order pharmacy, providing customers with prescription and non-prescription medications, health and beauty products, and medical products. As of 2022, the company has a market capitalization of 357.78 million Swiss francs, indicating its value on the stock market. Furthermore, Zur Rose Group AG has a negative return on equity (ROE) of -29.55%, which is below average, indicating that the company’s management is not efficiently utilizing its shareholders’ equity to generate profits.
Summary
111 is a company that recently reported negative non-GAAP Earnings Per Adjusted Diluted Share (EPADS) of -$0.12 and revenue of $502.4M, which moved its stock price down for the day. From an investing perspective, it is important to consider the company’s long-term growth prospects when evaluating their performance. Are the negative non-GAAP EPADS a short-term aberration or a sign of deeper structural issues? Is there potential for revenue growth in the coming quarters?
What does the competitive landscape look like? These are all important questions investors should ask when considering the company’s prospects.
