Last Updated: 16 Sep 2024
Executive Summary
Yunji Inc. (YJ), a social e-commerce platform in China, has a market capitalization of $10.57 billion. Despite strong revenue growth, the company faces profitability challenges, with an EBITDA loss of $96.26 million in the latest quarter. The stock price has declined significantly in the past year, and analysts have a negative outlook on the company.
Company Overview
Yunji Inc. operates a social e-commerce platform that connects consumers with local merchants. The company's platform allows users to discover and purchase products, as well as interact with other users and share recommendations. Yunji has a strong presence in China, with over 250 million registered users.
Fundamental Analysis
Yunji's revenue has grown rapidly in recent years, reaching $528.17 million in the latest twelve months. However, the company has struggled to achieve profitability, with an EBITDA loss of $96.26 million in the latest quarter. This has resulted in a negative profit margin of -0.206%.
Yunji's balance sheet is relatively strong, with $241.52 in book value per share. However, the company has a high level of debt, with a debt-to-equity ratio of 1.54.
Technical Analysis
Yunji's stock price has declined significantly in the past year, from a high of $4.72 to a low of $1.424. The stock is currently trading at $2.15, below its 50-day and 200-day moving averages. The relative strength index (RSI) is below 30, indicating that the stock is oversold.
Short Term Outlook
Analysts have a negative outlook on Yunji in the short term. The company faces significant profitability challenges, and its stock price is likely to remain under pressure. The stock could fall further to its 52-week low of $1.424.
Long Term Outlook
Analysts are also negative on Yunji in the long term. The company's business model is not sustainable, and it is likely to face increasing competition from larger e-commerce players. The stock could continue to decline over the long term.
Analyst Recommendations
Of the analysts who cover Yunji, 1 has a sell rating on the stock. The average analyst target price is $3.29, which is below the current stock price.
