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ATRenew Inc. Sponsored ADR (RERE)
NYSE:RERE
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ATRenew Inc. Sponsored ADR
(NYSE:RERE)
Select Model
Select Model
Rating:69Neutral
Price Target:
$5.00
▲(7.07% Upside)
ATRenew Inc.'s stock is bolstered by strong technical momentum and positive earnings call sentiment. However, high valuation and profitability challenges weigh down the overall score. The company's robust revenue growth and strategic expansions are significant positives, but cash flow inconsistencies and high P/E ratio present risks.
ATRenew Inc. Sponsored ADR (RERE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.03B
Dividend YieldN/A
Average Volume (3M)2.87M
Price to Earnings (P/E)39.2
Beta (1Y)1.07
Revenue Growth27.53%
EPS GrowthN/A
CountryUS
Employees2,096
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.06
Shares Outstanding132,037,490
10 Day Avg. Volume1,723,723
30 Day Avg. Volume2,868,877
Financial Highlights & Ratios
PEG Ratio6.54
Price to Book (P/B)1.38
Price to Sales (P/S)0.31
P/FCF Ratio8.74
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue0.03
Enterprise Value/Gross Profit0.16
Enterprise Value/Ebitda1.62
Forecast
1Y Price Target
$5.00Price Target Upside7.07% Upside
Rating ConsensusHold
Number of Analyst Covering0
ATRenew Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionATRenew Inc., through its subsidiaries, operates pre-owned consumer electronics transactions and services platform in the People's Republic of China. It primarily sells mobile phones, laptops, tablets, drones, digital cameras, household products, and bags through its online platforms and offline stores, as well as provides services to third-party merchants to sell the products through its platforms. As of December 31, 2021, it operated 1,287 AHS stores and 21 Paipai stores in 214 cities. The company was formerly known as AiHuiShou International Co. Ltd. and changed its name to ATRenew Inc. November 2021. The company was incorporated in 2011 and is headquartered in Shanghai, the People's Republic of China.
How the Company Makes MoneyATRenew Inc. generates revenue primarily through the resale of pre-owned electronics obtained via trade-ins or direct purchases from consumers and businesses. The company's key revenue streams include its online and offline platforms, where refurbished devices are sold to consumers. ATRenew also earns through service fees from facilitating transactions and partnerships with major electronics retailers and manufacturers for trade-in programs. Its advanced technology platform enables efficient device grading and pricing, enhancing the value proposition for both buyers and sellers. Additionally, the company benefits from strategic partnerships with e-commerce giants and physical retail stores, expanding its market reach and customer base.
ATRenew Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:Aug 20, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Positive
ATRenew's earnings call showcased strong revenue growth and expansion in both 1P and 3P segments, alongside a significant store and fulfillment network expansion. While there were some challenges in lower-tier cities and a minor decline in operating profit margin, the overall financial performance was solid, bolstered by strategic partnerships and a shareholder return program.Q2-2025 Updates
Positive Updates
Record Revenue Growth
ATRenew reported total revenue of RMB 4.99 billion for Q2 2025, representing a year-over-year growth of 32.2%, exceeding the high end of guidance.
1P and 3P Revenue Increase
1P product revenue grew by 34% year-over-year to RMB 4.56 billion, while 3P service revenue increased by 15.4% year-over-year to RMB 430 million.
Store and Fulfillment Expansion
The company operated 2,092 AHS stores nationwide, with 987 self-operated stores and 1,105 jointly operated stores, and expanded its self-operated to-door service team to 1,160 personnel.
Refurbished Products Contribution
Refurbished products contributed 13.5% of 1P revenue, with a significant increase in the P2C retail revenue by 63.7% year-over-year.
Strong Performance in B2B and B2C Marketplaces
PJT's warehousing inspection GMV surged, and Paipai's consignment GMV increased by 128% year-over-year.
Shareholder Return Program
Announced a 3-year shareholder return program, committing to return no less than 60% of annual non-GAAP net profit to shareholders from 2025 through 2027.
Negative Updates
Challenges in Lower-Tier Cities
In lower-tier cities, constraints in store density and staffing limited face-to-face fulfillment order ratio to below 50%.
Operating Profit Margin Decline
Non-GAAP operating profit margin was 2.4% for Q2 2025, a slight decline from 2.5% in the same quarter last year.
Company Guidance
During ATRenew Inc's Second Quarter 2025 Earnings Conference Call, the company reported strong financial performance with total revenue reaching RMB 4.99 billion, marking a year-over-year growth of 32.2%. The 1P product revenue increased by 34% to RMB 4.56 billion, while the 3P service revenue grew by 15.4% to RMB 430 million. The non-GAAP operating profit margin stood at 2.4%, aligning with the full-year target. The company highlighted robust C2B recycling growth, driven by national subsidies and partnerships with high-quality consumer electronics brands. By the end of Q2, ATRenew operated 2,092 AHS stores nationwide and expanded its self-operated to-door service team to 1,160 personnel. Refurbished products contributed 13.5% of 1P revenue, and 1P2C retail revenue surged 63.7% year-over-year. The company's B2B marketplace saw a warehousing inspection penetration rate increase from 62% in Q1 2024 to 73% in Q2 2025, while its B2C marketplace experienced a 128% year-over-year surge in Paipai's consignment GMV. ATRenew also announced a three-year shareholder return program, promising to return no less than 60% of annual non-GAAP net profit to shareholders from 2025 through 2027.ATRenew Inc. Sponsored ADR Financial Statement Overview
Summary
ATRenew Inc. shows strong revenue growth and stable gross profit margins. However, profitability remains a challenge with negative net profit margins and inconsistent cash flow generation. The balance sheet is stable, but historical negative equity is a concern.Income Statement
ATRenew Inc. has shown a positive trend in revenue growth with a 25.9% increase from 2023 to 2024, following a 31.3% growth from 2022 to 2023. Gross profit margins have been stable, with the latest at 19.9%. However, the company has struggled with profitability, as reflected by negative net profit margins, despite a significant improvement in EBIT and EBITDA margins over the years.72
Positive
Balance Sheet
The company has a healthy equity base with an equity ratio of 72.6% in 2024, but its debt-to-equity ratio is relatively low at 0.08, indicating low leverage. The consistent increase in stockholders' equity is positive, but the company has historically faced negative equity, which poses a potential risk.65
Positive
Cash Flow
ATRenew Inc. has faced challenges in generating positive free cash flow, with zero free cash flow reported in 2024. The operating cash flow to net income ratio has been volatile, showing inconsistencies in cash generation relative to earnings. The lack of free cash flow growth in the most recent year highlights ongoing cash management challenges.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.32B | 16.33B | 12.97B | 9.87B | 7.78B | 4.86B |
| Gross Profit | 3.55B | 3.24B | 2.63B | 2.27B | 2.04B | 1.25B |
| EBITDA | 345.50M | 362.70M | 192.38M | -2.16B | -521.33M | -128.54M |
| Net Income | 127.35M | -8.23M | -156.25M | -2.47B | -816.55M | -470.62M |
Balance Sheet | ||||||
| Total Assets | 5.36B | 5.09B | 5.49B | 5.05B | 7.50B | 5.23B |
| Cash, Cash Equivalents and Short-Term Investments | 2.39B | 2.61B | 2.43B | 2.52B | 1.89B | 1.03B |
| Total Debt | 357.38M | 354.93M | 405.94M | 203.93M | 165.45M | 595.70M |
| Total Liabilities | 1.61B | 1.40B | 1.78B | 1.17B | 1.08B | 10.44B |
| Stockholders Equity | 3.74B | 3.69B | 3.71B | 3.88B | 6.42B | -5.21B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 582.95M | 158.72M | 819.83M | -1.09B | -450.71M |
| Operating Cash Flow | 0.00 | 642.81M | 243.90M | 881.30M | -1.02B | -412.87M |
| Investing Cash Flow | 0.00 | -424.40M | 172.01M | -516.68M | -670.40M | 18.63M |
| Financing Cash Flow | 0.00 | -307.71M | 68.70M | -186.04M | 2.29B | 929.96M |
ATRenew Inc. Sponsored ADR Technical Analysis
Positive
4.67
Price Trends
4.07
Positive
3.49
Positive
3.16
Positive
Market Momentum
0.09
Negative
61.80
Neutral
80.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RERE, the sentiment is Positive. The current price of 4.67 is above the 20-day moving average (MA) of 4.41, above the 50-day MA of 4.07, and above the 200-day MA of 3.16, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 61.80 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RERE.
ATRenew Inc. Sponsored ADR Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $1.03B | 39.16 | 5.65% | ― | 27.53% | ― | |
63 Neutral | 248.24M | -9.32 | -4.73% | ― | 7.91% | 30.18% | |
63 Neutral | 1.41B | -10.96 | -114.16% | ― | -13.22% | ― | |
63 Neutral | 1.17B | -18.75 | -94.46% | ― | -10.39% | 14.92% | |
52 Neutral | 845.57M | -11.31 | -23.18% | ― | 11.67% | 31.55% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
Performance Comparison
RERE
ATRenew Inc. Sponsored ADR
4.72
2.19
86.56%
LQDT
Liquidity Services
27.30
4.87
21.71%
JMIA
Jumia Technologies AG
11.18
5.88
110.94%
RVLV
Revolve Group
21.99
-3.00
-12.00%
YSG
Yatsen Holding
9.00
5.63
167.06%
TDUP
thredUP
9.31
8.45
982.56%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.