ATRenew Inc. Sponsored ADR (RERE) AI Stock Analysis

• Market Cap: $929.88M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 26.2
• Beta (1Y): 1.04
• Revenue Growth: 27.84%
• EPS Growth: N/A
• Country: US
• Employees: 2,096
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.08
• Shares Outstanding: 132,037,490
• 10 Day Avg. Volume: 1,582,817
• 30 Day Avg. Volume: 1,472,577
• PEG Ratio: 6.54
• Price to Book (P/B): 1.38
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 8.74
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 0.22
• Enterprise Value/Ebitda: 1.65
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.25
• Revenue Forecast (FY): $2.94B

• Rating: 61 Neutral
• Price Target: $4.00 ▼(-10.51% Downside)

ATRenew Inc.'s overall stock score is driven by strong revenue growth and strategic expansions, as highlighted in the earnings call. However, challenges in profitability and cash flow management, along with a high P/E ratio, weigh on the score. Technical indicators suggest mixed market sentiment, adding to the cautious outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term sustainability and market position.

Market Expansion

Expanding the store network strengthens market presence and customer reach, supporting sustained revenue growth and competitive advantage.

Environmental Recognition

Recognition for environmental contributions enhances brand reputation and aligns with growing consumer preference for sustainable practices.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder reinvestment and growth opportunities, impacting long-term financial health and investor confidence.

Cash Flow Management

Inconsistent cash flow generation limits financial flexibility, affecting the company's ability to invest in growth and manage debt effectively.

Increased Expenses

Rising expenses without corresponding revenue increases can erode margins, challenging the company's ability to maintain profitability.

ATRenew Inc. Sponsored ADR Business Overview & Revenue Model

Company Description

ATRenew 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 Money

ATRenew generates revenue primarily through the resale of refurbished electronic devices. The company acquires used electronics from consumers and businesses, which are then processed, tested, and refurbished to meet quality standards. Key revenue streams include direct sales of these refurbished products to consumers and partnerships with e-commerce platforms for broader distribution. Additionally, ATRenew may earn revenue through service fees from businesses for managing their electronic waste and through the sale of spare parts from unsalvageable devices. The company's established relationships with major retailers and technology firms also enhance its market reach and revenue potential.

ATRenew Inc. Sponsored ADR Financial Statement Overview

Summary

ATRenew Inc. has demonstrated strong revenue growth and an improving gross profit margin. However, profitability remains a significant challenge with negative net profit margins. The balance sheet is stable with healthy equity levels, though historical negative equity raises concerns. Cash flow management is a critical area for improvement due to the lack of consistent free cash flow generation.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	18.54B	16.33B	12.97B	9.87B	7.78B	4.86B
Gross Profit	3.80B	3.24B	2.63B	2.27B	2.04B	1.25B
EBITDA	513.90M	362.70M	192.38M	-2.16B	-521.33M	-128.54M
Net Income	210.36M	-8.23M	-156.25M	-2.47B	-816.55M	-470.62M
Balance Sheet
Total Assets	5.20B	5.09B	5.49B	5.05B	7.50B	5.23B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.61B	2.43B	2.52B	1.89B	1.03B
Total Debt	244.21M	354.93M	405.94M	203.93M	165.45M	595.70M
Total Liabilities	1.41B	1.40B	1.78B	1.17B	1.08B	10.44B
Stockholders Equity	3.79B	3.69B	3.71B	3.88B	6.42B	3.67B
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

• Technical Analysis Sentiment: Positive
• Last Price: 4.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.47 is above the 20-day moving average (MA) of 4.04, above the 50-day MA of 4.15, and above the 200-day MA of 3.44, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 67.52 is Neutral, neither overbought nor oversold. The STOCH value of 60.65 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	74 Outperform	$1.76B	32.09	12.19%	―	9.24%	35.68%
LQDT	72 Outperform	$925.63M	34.83	14.56%	―	31.20%	38.38%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RERE	61 Neutral	$929.88M	26.22	7.42%	―	27.84%	―
YSG	48 Neutral	$588.47M	―	-13.99%	―	22.58%	33.18%
JMIA	45 Neutral	$1.41B	―	-102.25%	―	-4.38%	―
TDUP	45 Neutral	$938.57M	―	-35.37%	―	-4.90%	50.77%

ATRenew Inc. Sponsored ADR Corporate Events

ATRenew Inc. Reports Strong Q3 2025 Financial Growth and Announces Share Repurchase Program

ATRenew Inc. reported a significant increase in its financial performance for the third quarter of 2025, with total net revenues rising by 27.1% year-over-year to RMB5,149.2 million. The company’s income from operations saw a remarkable increase of 385.1%, reaching RMB120.8 million. This growth is attributed to strategic enhancements in transaction efficiency and user experience across its marketplaces, as well as the expansion of its store networks and operation center capacity. The company also announced a share repurchase program and expects continued revenue growth in the fourth quarter of 2025, reflecting its strong market positioning and commitment to shareholder value.

ATRenew Inc. Reports Strong Q2 2025 Financial Results and New Shareholder Return Plan

ATRenew Inc. reported a significant financial turnaround in the second quarter of 2025, with total net revenues increasing by 32.2% year-over-year to RMB4,991.5 million. The company achieved an adjusted operating profit of RMB121.3 million, driven by increased retail product revenue and effective expense management. The company also repurchased approximately 1.6 million ADSs and announced a new share repurchase program. Additionally, ATRenew released its 2024 ESG Report, highlighting its commitment to emissions reduction and alignment with global ESG practices. The board approved a three-year shareholder return plan, allocating no less than 60% of adjusted net income for shareholder returns.