Aterian (ATER) AI Stock Analysis

• Market Cap: $12.78M
• Dividend Yield: N/A
• Average Volume (3M): 111.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -26.36%
• EPS Growth: 82.23%
• Country: US
• Employees: 97
• Sector: Consumer Cyclical
• Sector Strength: 70
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.52
• Shares Outstanding: 8,750,741
• 10 Day Avg. Volume: 145,126
• 30 Day Avg. Volume: 111,332
• PEG Ratio: -0.08
• Price to Book (P/B): 0.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.18
• Enterprise Value/Market Cap: -0.07
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: -0.02
• Enterprise Value/Ebitda: 0.02
• 1Y Price Target: $4.00
• Price Target Upside: 185.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $1.50 ▲(7.14%Upside)

Aterian's overall stock score is negatively impacted by weak financial performance and bearish technical signals. The company's strategic initiatives to reduce costs and diversify manufacturing are positive but have yet to translate into financial improvements. The valuation metrics reflect ongoing profitability issues, making the stock less attractive in its current state.

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 streamline the process of designing, manufacturing, marketing, and selling products online. The company primarily operates in the e-commerce sector, offering a diverse range of consumer goods across various categories such as home and kitchen, health and wellness, and beauty and personal care. Aterian utilizes a platform-based approach to identify market opportunities and rapidly bring high-demand products to market through online channels, particularly on Amazon and other e-commerce platforms.

How the Company Makes Money

Aterian generates revenue through the sale of consumer products across multiple online retail platforms, with a significant portion of its sales occurring on Amazon. The company employs a data-driven model to identify trending products and optimize their production and marketing strategies, which allows them to efficiently capture market demand. Aterian's key revenue streams include direct sales of its branded products, as well as strategic partnerships and collaborations that enhance its product offerings. Additionally, the company benefits from economies of scale and operational efficiencies afforded by its proprietary technology platform, which enhances its profitability by reducing costs and improving product margins.

Aterian Financial Statement Overview

Summary

Aterian faces substantial profitability challenges with declining revenues and negative profit margins. The balance sheet shows moderate debt levels and positive equity, but net losses continue to affect financial health. Positive cash flow trends provide some relief, yet operational inefficiencies persist.

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
	EBIT
-10.24M	-11.82M	-76.19M	-59.87M	-59.14M	-22.02M
	EBITDA
-8.00M	-9.00M	-69.42M	-186.45M	-214.92M	-57.49M
	Net Income Common Stockholders
-10.60M	-11.86M	-74.56M	-196.29M	-234.72M	-63.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
14.34M	18.00M	20.02M	43.57M	30.32M	26.72M
	Total Assets
49.82M	49.54M	61.87M	156.44M	312.09M	157.45M
	Total Debt
0.00	7.41M	12.15M	22.75M	40.42M	86.50M
	Net Debt
-14.34M	-10.58M	-7.88M	-20.83M	10.11M	59.79M
	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
2.17M	2.12M	-13.51M	-17.56M	-42.00M	5.01M
	Operating Cash Flow
2.17M	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	33.31M

Aterian Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ATER, the sentiment is Negative. The current price of 1.4 is below the 20-day moving average (MA) of 1.71, below the 50-day MA of 1.83, and below the 200-day MA of 2.40, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 26.95 is Positive, neither overbought nor oversold. The STOCH value of 8.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ATER.

Aterian Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	62 Neutral	$6.94B	11.29	2.95%	3.87%	2.70%	-24.49%
NTZ	48 Neutral	$47.32M	―	-25.01%	―	-2.91%	3.98%
ATER	48 Neutral	$12.78M	―	-35.33%	―	-26.36%	82.23%
PRPL	47 Neutral	$84.54M	―	-199.78%	―	-10.41%	53.85%
IRBT	42 Neutral	$101.09M	―	-237.51%	―	-27.44%	-2.92%
NVFY	42 Neutral	$13.66M	―	-131.84%	―	-12.63%	61.30%
NCL	42 Neutral	$108.83M	―	-298.04%	―	47.13%	-49.61%

Aterian Corporate Events

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.