Aterian (ATER) AI Stock Analysis

• Market Cap: $16.09M
• Dividend Yield: N/A
• Average Volume (3M): 220.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.03
• Revenue Growth: -26.36%
• EPS Growth: 82.23%
• Country: US
• Employees: 97
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.52
• Shares Outstanding: 9,931,860
• 10 Day Avg. Volume: 318,898
• 30 Day Avg. Volume: 220,558
• PEG Ratio: -0.08
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.43
• Enterprise Value/Market Cap: 0.50
• Enterprise Value/Revenue: 0.02
• Enterprise Value/Gross Profit: 0.14
• Enterprise Value/Ebitda: -0.15
• 1Y Price Target: $4.00
• Price Target Upside: 140.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 49 Neutral
• Price Target: $1.50 ▼(-9.64%Downside)

Aterian's overall stock score reflects significant financial challenges and valuation concerns, with mixed technical indicators. While strategic initiatives are underway to address these issues, the current financial and operational landscape presents substantial risks. The company's commitment to cost reduction and diversification could support future improvements, yet immediate concerns dominate the outlook.

Positive Factors

Financial Performance

ATER reached EBITDA breakeven a quarter ahead of plan.

Product Expansion

Plans to expand its omnichannel footprint hold promise with ATER poised to launch on Target's Target Plus marketplace and other brick & mortar stores possible.

Negative Factors

Consumer Environment

The general consumer environment looks uncertain as inflation could re-emerge and interest rates could be stickier than anticipated.

Market Competition

The consumer environment is still difficult and the Amazon Marketplace is highly competitive.

Tariffs and Sourcing

Higher tariffs look highly likely and ATER sources the large majority of its product from China.

Aterian Business Overview & Revenue Model

Company Description

Aterian, Inc. (ATER) is a technology-enabled consumer products company that leverages proprietary software and data analytics to drive the development, marketing, and sale of a diverse range of consumer goods. Operating in sectors such as home and kitchen appliances, health and wellness, beauty, and electronics, Aterian's core strategy revolves around its e-commerce platform and direct-to-consumer sales model, allowing it to swiftly respond to market trends and consumer demands.

How the Company Makes Money

Aterian makes money primarily through the sale of consumer products across various categories, facilitated by its e-commerce platform and proprietary software technology, which optimizes product development and marketing strategies. The company generates revenue by selling products directly to consumers via online marketplaces like Amazon, as well as through its own websites. Key revenue streams include sales of home and kitchen appliances, personal care products, and electronics. Additionally, Aterian benefits from data-driven insights that enhance its product offerings and marketing efficiency, contributing to its earnings. The company's strategic acquisitions and partnerships in the consumer goods sector further bolster its revenue potential.

Aterian Financial Statement Overview

Summary

Aterian faces significant profitability challenges with declining revenues and negative net profit margins. While cash flow shows improvement, consistent net losses and negative margins indicate operational inefficiencies. A stable balance sheet with manageable debt is a positive aspect, but overall financial health is compromised by persistent losses.

Income Statement

The company has faced declining revenues over recent years, with a significant drop from 2019 to 2024. Gross profit margin stands at 62.0% for 2024, indicating a strong ability to convert revenue into gross profit, yet the net profit margin is deeply negative at -12.0%, reflecting continued net losses. EBIT and EBITDA margins are also negative, suggesting operating challenges. Overall, profitability remains a significant concern.

Balance Sheet

Aterian's balance sheet shows a manageable debt-to-equity ratio of 0.25 in 2024, indicating a moderate level of debt relative to equity. Stockholders' equity has decreased from 2021, but the company maintains a positive equity ratio of 60.6%, suggesting reasonable financial stability. The return on equity is negative due to losses, pointing to inefficiencies in generating returns on shareholder investment.

Cash Flow

The cash flow statement shows improvement with positive free cash flow of $2.12 million in 2024, a turnaround from negative flows in previous years. Operating cash flow is positive, yet the ratio of operating cash flow to net income indicates a challenge in converting earnings into cash. Free cash flow to net income is also negative, reflecting underlying profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.19M	99.05M	142.57M	221.17M	247.77M	185.70M
Gross Profit	57.75M	61.49M	70.28M	105.52M	121.86M	84.75M
EBITDA	-8.00M	-9.00M	-69.42M	-186.45M	-214.92M	-57.49M
Net Income	-10.60M	-11.86M	-74.56M	-196.29M	-234.72M	-63.13M
Balance Sheet
Total Assets	49.82M	49.54M	61.87M	156.44M	312.09M	157.45M
Cash, Cash Equivalents and Short-Term Investments	14.34M	18.00M	20.02M	43.57M	30.32M	26.72M
Total Debt	7.98M	7.41M	12.15M	22.75M	40.42M	86.50M
Total Liabilities	22.78M	19.52M	25.84M	54.49M	86.56M	134.07M
Stockholders Equity	27.04M	30.02M	36.03M	101.95M	225.53M	23.38M
Cash Flow
Free Cash Flow	-1.70M	2.12M	-13.51M	-17.56M	-42.00M	5.01M
Operating Cash Flow	-1.70M	2.17M	-13.39M	-17.48M	-41.97M	5.10M
Investing Cash Flow	-6.00K	-242.00K	-244.00K	-677.00K	-44.91M	-39.05M
Financing Cash Flow	-2.28M	-4.91M	-11.11M	27.00M	95.57M	32.32M

Aterian Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATER, the sentiment is Neutral. The current price of 1.66 is above the 20-day moving average (MA) of 1.44, below the 50-day MA of 1.67, and below the 200-day MA of 2.27, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 55.44 is Neutral, neither overbought nor oversold. The STOCH value of 81.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ATER.

Aterian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	€6.15B	13.45	0.40%	4.17%	4.45%	-35.15%
ATER	49 Neutral	$16.09M	―	-35.33%	―	-26.36%	82.23%
PRPL	48 Neutral	$81.94M	―	-199.78%	―	-10.41%	53.85%
NTZ	45 Neutral	$41.36M	―	-25.01%	―	-2.91%	3.98%
IRBT	44 Neutral	$95.80M	―	-237.51%	―	-27.44%	-2.92%
NVFY	42 Neutral	$19.19M	―	-131.84%	―	-12.63%	61.30%
NCL	42 Neutral	$16.23M	―	-298.04%	―	47.13%	-49.61%

Aterian Corporate Events

Aterian Board Member Sarah Liebel to Retire

On June 24, 2025, Sarah Liebel informed Aterian Inc. that she will not seek reelection at the company’s 2025 Annual Meeting of Stockholders and will retire from the Board following the meeting. Her decision is due to personal reasons related to increased responsibilities in her current professional role and is not due to any disagreements with the company.

The most recent analyst rating on (ATER) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Aterian stock, see the ATER Stock Forecast page.

Aterian Announces Workforce Reduction and Cost Optimization Plan

On May 14, 2025, Aterian announced a fixed cost reduction plan, including a workforce reduction affecting around 20 employees, expected to be completed by the end of Q3 2025. The plan anticipates restructuring charges of approximately $2.3 million, primarily for severance, with payments extending through Q2 2026. Additionally, Aterian reported its Q1 2025 financial results, highlighting a net revenue decrease to $15.4 million from $20.2 million due to SKU rationalization and changes in Amazon’s affiliate market program. Despite these challenges, the company is implementing a cost optimization plan to save $5-$6 million annually and mitigate tariff impacts, aiming to enhance its business model by diversifying manufacturing and expanding into US-made consumables.

The most recent analyst rating on (ATER) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on Aterian stock, see the ATER Stock Forecast page.