Quality Investor

111, Inc.

Rank #199Decline

YI · Nasdaq · Healthcare

111, Inc. (YI) — Rank #199 by gross profitability (GP/assets 0.33) · ROE 9.5% · Piotroski F-Score 4 / 9.

As-of 2026-09-15 · CIK 0001738906 · all metrics point-in-time as of the filing date.

About

111, Inc., together with its subsidiaries, operates an integrated online and offline platform in the healthcare market in the People's Republic of China.

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It operates through two segments, B2C and B2B. The company offers supply chain integration services that help pharmaceutical companies manage products through online and offline channels; product promotion, customer analytics, patient education, and brand awareness services; and marketing and channel data services. It also provides 1 Pharmacy online wholesale pharmacy that offers pharmaceutical and other health and wellness products; and 1 Medicine Marketplace online retail pharmacy that provides drugs, nutritional supplements, medical supplies and devices, personal care, and baby products. In addition, the company offers online loan application services; cloud-based inventory management services; smart procurement services, which collect pharmacies' historical purchase orders and inventory data; and Hawkeye automated salesforce tool, as well as online consultation, e-prescription, and data services. Further, its pharmacies provide drugs, including prescription and over-the-counter drugs comprising Western and Chinese medicines; nutritional supplements, such as vitamins and dietary products; contact lenses; medical supplies and devices that consists of bandages and thermometers; and personal care products that include skin care, birth control, sexual wellness, and baby products. Additionally, the company offers research and development, and consulting services; warehousing, procurement, and logistics services; and software development and information technology support services. It serves pharmacies, pharmaceutical companies, medical professionals, and marketplace sellers. The company was formerly known as New Peak Group and changed its name to 111, Inc. in April 2018. 111, Inc.

was founded in 2010 and is headquartered in Shanghai, the People's Republic of China.

Industry
Medical Distribution
Sector
Healthcare
State
E9
Filer Category
Non-accelerated filer
Fiscal Year End
December 31

Price History

YI-45.3% · -11.4% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E, P/B, and dividend yield matter most — book value provides a floor.

Market Cap

$29.30M

P/E (annual)

P/S (annual)

0.0

P/B

P/OCF (annual)

0.2

Shareholder Yield

-1.3%

Employees

1,063

Industry

Medical Distribution

Exchange

Nasdaq

Signal Flags

2 red
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.33
Return on equity
9.5%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
Current ratio
1.09×
Net cash
$375.37M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.1%

Growth

1/2 pass
Revenue growth
-12.8%
Piotroski F-Score
4 / 9
Share dilution
1.3%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

2 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-12.0%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Dilution drag: 1.3% — per-share value needs a total required return of -10.7% once share-count change is priced in.

vs. own 6-year median revenue growth: 9.7%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-15.0%

r = 10% (base)

-12.0%

r = 12%

-9.3%

Net debt / market cap: -64.8%

Base FCF: $114.7M3Y mean FCF: -$31.5M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / S

Price / revenue per share

0.1xExpensive
0.0xmed 0.0x0.1x

P / GP

Price / gross profit per share

1.5xExpensive
0.3xmed 0.5x1.7x

Asset value and restructuring potential (balance-sheet strength) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.33

Primary signal (Novy-Marx).

13th of 14 SIC 59 peers

Return on equity

9.5%

Gross margin

5.8%

14th of 14 SIC 59 peers

Revenue growth (YoY)

-12.8%

RPO growth (YoY)

-27.2%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-2.4%

Revenue CAGR (5Y)

8.9%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

Current ratio

1.09×

13th of 14 SIC 59 peers

Quick ratio

0.42×

Net cash

$375.37M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$114.69M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

2.73

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.1%

Stock-based comp intensity.

Piotroski F-Score

F-Score

4 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Startup
Decline