So-Young International (SY) AI Stock Analysis

• Market Cap: $70.86M
• Dividend Yield: N/A
• Average Volume (3M): 315.50K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.78
• Revenue Growth: -3.53%
• EPS Growth: -2848.11%
• Country: US
• Employees: 1,357
• Sector: Healthcare
• Sector Strength: 66
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -0.80
• Shares Outstanding: 86,409,950
• 10 Day Avg. Volume: 187,659
• 30 Day Avg. Volume: 315,497
• PEG Ratio: 2.80
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.88
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

So-Young International's stock score is negatively impacted by weak financial performance, characterized by declining revenues and significant net losses. The technical analysis supports a weak momentum, and the valuation is unattractive due to a negative P/E ratio and lack of dividends. However, the earnings call highlights growth in aesthetic services and strong customer satisfaction, which may provide a path for recovery if the company can manage its costs and leverage its cash position effectively.

So-Young International Business Overview & Revenue Model

Company Description

So-Young International Inc. operates an online platform for medical aesthetics and consumption healthcare services focusing on discretionary medical treatments in the People's Republic of China and internationally. Its platform enables users to discover content and share their own experience on medical aesthetics procedures and leads users to reserve treatment services from medical aesthetic service providers for offline treatment. The company facilitates research on medical aesthetic treatment trends; ratings and reviews on treatment experiences; and blogs under the name Beauty Diaries. It also provides reservation services in the areas of dermatology, dentistry and orthodontics, ophthalmology, physical examinations, gynecology, human papilloma virus vaccines, and postnatal care; Software as a Service; and guiding and consulting services through training programs for medical service providers. In addition, the company offers internet information and technology advisory, management consulting, and Internet culture services, as well as sells medical equipment; equipment production, sales, and agency services; and micro finance services. As of December 31, 2021, it had approximately 8,400 medical aesthetic service providers and 5,000 other consumption healthcare service providers on its platform. The company was founded in 2013 and is headquartered in Beijing, China.

How the Company Makes Money

So-Young International generates revenue through a multi-faceted business model primarily driven by service fees and commissions. The company earns service fees from medical aesthetic service providers who use its platform to reach potential clients. Additionally, So-Young takes a commission from transactions facilitated through its platform when consumers book aesthetic procedures. The company also monetizes its user base by offering marketing and advertising solutions to healthcare professionals and organizations looking to promote their services. Key partnerships with clinics, hospitals, and other medical institutions further bolster its revenue streams by expanding the range of services available on its platform, thus attracting more users and driving greater transaction volumes.

So-Young International Financial Statement Overview

Summary

So-Young International shows potential with notable revenue growth and strong gross margin. However, challenges remain in converting revenue into net profit and generating positive free cash flow. The balance sheet is a strong point with a solid equity base and low leverage, indicating stability. The company needs to focus on improving operational efficiency and cash flow management to enhance its overall financial health.

Income Statement

The company exhibits a mixed performance in its income statement. The gross profit margin for the latest year is approximately 63.7%, indicating strong profitability in core operations. However, the net profit margin is about 1.4%, revealing challenges in controlling overall expenses. Revenue grew by 19% from the previous year, which is a positive sign of growth. EBIT and EBITDA margins are negative, indicating potential operational inefficiencies.

Balance Sheet

The balance sheet shows a healthy equity ratio of 76%, reflecting a solid financial position with considerable equity backing. The debt-to-equity ratio is low at approximately 0.06, suggesting limited leverage and financial risk. Return on equity is positive at 0.9%, although relatively modest, it marks an improvement from losses in prior years.

Cash Flow

Cash flow analysis indicates challenges, with a negative free cash flow of approximately -28.7 million, though an improvement from the previous year's deeper negative value. Operating cash flow to net income ratio is around 1.06, suggesting that operational cash generation is in line with net income. However, free cash flow to net income ratio is negative, highlighting issues in cash retention after capital expenditures.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
1.50B	1.50B	1.26B	1.69B	1.29B	1.15B
	Gross Profit
948.92M	953.69M	864.58M	1.36B	1.08B	953.01M
	EBIT
-37.01M	-61.05M	-102.81M	82.79M	-56.69M	145.18M
	EBITDA
-2.19M	-14.96M	-55.72M	63.39M	-42.61M	151.30M
	Net Income Common Stockholders
33.51M	21.28M	-66.11M	-37.64M	5.81M	176.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.32B	1.33B	1.57B	1.74B	2.65B	2.83B
	Total Assets
3.19B	3.21B	3.20B	3.33B	3.29B	3.23B
	Total Debt
151.75M	145.77M	71.26M	105.89M	132.51M	158.60M
	Net Debt
-296.28M	-280.35M	-623.16M	-1.23B	-994.54M	-726.07M
	Total Liabilities
664.63M	653.25M	590.00M	813.33M	672.44M	587.32M
	Stockholders Equity
2.41B	2.44B	2.50B	2.45B	2.60B	2.64B
Cash Flow		Free Cash Flow
0.00	-28.68M	-128.58M	39.23M	142.22M	346.28M
	Operating Cash Flow
0.00	22.50M	-112.87M	84.29M	179.18M	383.82M
	Investing Cash Flow
0.00	-202.61M	-572.21M	339.82M	123.84M	-1.34B
	Financing Cash Flow
0.00	-100.02M	-13.59M	-216.74M	-5.80M	1.27B

So-Young International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SY, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.85, below the 50-day MA of 0.90, and below the 200-day MA of 0.90, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 46.66 is Neutral, neither overbought nor oversold. The STOCH value of 71.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SY.

So-Young International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FONR	57 Neutral	$77.39M	10.83	4.68%	―	-0.83%	-38.41%
PETS	55 Neutral	$63.83M	288.79	0.36%	―	-10.82%	―
Sector *	51 Neutral	$5.19B	3.12	-41.08%	2.95%	17.98%	2.02%
SY	47 Neutral	$70.86M	17.80	-27.49%	―	-3.53%	-2848.11%
PAVS	43 Neutral	$89.56M	―		―	-93.33%	―
VOR	35 Underperform	$81.15M	―	-94.52%	―	―	2.98%