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ATRenew Inc. Sponsored ADR (RERE)
NYSE:RERE
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ATRenew Inc. Sponsored ADR
(NYSE:RERE)
Rating:70Neutral
Price Target:
$4.00
▲(14.94%Upside)
ATRenew Inc. Sponsored ADR (RERE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$765.01M
Dividend YieldN/A
Average Volume (3M)1.05M
Price to Earnings (P/E)47.9
Beta (1Y)1.09
Revenue Growth25.34%
EPS GrowthN/A
CountryUS
Employees2,096
SectorConsumer Cyclical
Sector Strength60
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.04
Shares Outstanding132,037,490
10 Day Avg. Volume1,858,169
30 Day Avg. Volume1,050,514
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.44
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
ATRenew Inc. Sponsored ADR Business Overview & Revenue Model
Company DescriptionATRenew Inc. Sponsored ADR (RERE) is a leading technology-driven pre-owned consumer electronics transactions and services platform in China. The company operates in the sectors of e-commerce and environmental sustainability, focusing on the recycling and sales of used electronics. Its core services include the collection, inspection, grading, and resale of used mobile phones and other consumer electronics, leveraging its sophisticated technology and extensive business network to drive a circular economy.
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:May 20, 2025
(Q1-2025)
| % Change Since: 22.54%|
Next Earnings Date:Aug 20, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, expansion in retail and recycling capabilities, and a positive market outlook driven by national subsidies. Despite some challenges in specific segments like the Apple trade-in program and increased expenses, the overall financial performance was robust.Q1-2025 Updates
Positive Updates
Exceeding Revenue Guidance
Total net revenues for Q1 2025 exceeded the high end of guidance, increasing by 27.5% year-over-year to RMB 4,653.5 million.
Non-GAAP Operating Income Growth
Non-GAAP operating income increased by 39.5% year-over-year to over RMB 110 million, with a non-GAAP operating margin reaching 2.4%.
Strong 1P Business Performance
1P business revenue grew by 28.8% year-over-year, with product revenue increasing by over 50%.
Expansion of AHS Recycle Stores
A net addition of 458 AHS stores year-on-year by the end of March 2025, enhancing offline fulfillment capabilities.
Growth in Recycling Channels
C2B consumer electronics recycling value grew by over 50% year-over-year.
PJT Marketplace Expansion
The number of registered merchants on PJT exceeded one million, with a double-digit year-over-year increase in active trade-in merchants.
Paipai Consignment Business Growth
Sales across all categories in the Paipai consignment business grew by 2.2 times year-over-year in Q1 2025.
Multi-category Recycling Growth
Both transaction value and revenue nearly tripled year-over-year in Q1 2025.
Negative Updates
Decline in Apple Official Trade-In Program
Revenue declined year-over-year in Q1 2025 due to the high base driven by early stage pricing strategies, though margins improved.
Increased Fulfillment and Marketing Expenses
Non-GAAP fulfillment expenses as a percentage of total revenues increased to 9.1% from 8.3%, and non-GAAP selling and marketing expenses increased to 8.3% from 6.1%.
Company Guidance
During ATRenew Inc.'s first quarter 2025 earnings conference call, the company provided impressive financial guidance, highlighting several key metrics. Total net revenues for the first quarter exceeded expectations, growing by 27.5% year-over-year to RMB 4,653.5 million. The non-GAAP operating income increased by 39.5% year-over-year, reaching over RMB 110 million, with a non-GAAP operating margin of 2.4%. The growth was driven by a 28.8% year-over-year increase in 1P business revenue and a significant 73.5% year-over-year rise in 1P2C revenue. The company also reported a substantial increase in the retail capability of AHS Recycle’s official store network, with revenue growing by over 160% year-over-year. Looking ahead, ATRenew anticipates total revenues for the second quarter of 2025 to range between RMB 4,710 million and RMB 4,801 million, reflecting a year-over-year increase of 24.7% to 27.4%.ATRenew Inc. Sponsored ADR Financial Statement Overview
Summary
ATRenew Inc. has shown strong revenue growth and stable gross profit margins, but faces challenges in profitability due to negative net profit margins and inconsistent cash flow generation. Despite a healthy equity base on the balance sheet, historical negative equity and lack of free cash flow are areas of 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 | 17.53B | 16.33B | 12.97B | 9.87B | 7.78B | 4.86B |
| Gross Profit | 3.48B | 3.24B | 2.63B | 2.27B | 2.04B | 1.25B |
| EBITDA | 229.34M | 362.70M | 192.38M | -2.16B | -521.33M | -128.54M |
| Net Income | 162.06M | -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 | 2.39B | 2.49B | 1.87B | 1.02B |
| Total Debt | 357.38M | 354.93M | 405.94M | 157.51M | 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
3.48
Price Trends
2.71
Positive
2.80
Positive
2.76
Positive
Market Momentum
0.22
Negative
69.80
Neutral
85.57
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 3.48 is above the 20-day moving average (MA) of 2.96, above the 50-day MA of 2.71, and above the 200-day MA of 2.76, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 85.57 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 (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Neutral | $765.01M | 47.93 | 3.45% | ― | 25.34% | ― | |
62 Neutral | $945.98M | ― | -69.51% | ― | -10.55% | 9.27% | |
56 Neutral | $3.37B | 4.05 | -1.30% | 6.64% | 0.16% | -63.79% | |
56 Neutral | $934.18M | ― | -16.81% | ― | 0.23% | 26.92% | |
53 Neutral | $542.51M | ― | -134.38% | ― | -23.23% | ― | |
46 Neutral | $163.66M | ― | -4.61% | ― | 6.05% | 29.58% |
* Consumer Cyclical Sector Average
Performance Comparison
RERE
ATRenew Inc. Sponsored ADR
3.48
1.12
47.46%
BZUN
Baozun
2.61
0.06
2.35%
JMIA
Jumia Technologies AG
4.43
-4.03
-47.64%
YSG
Yatsen Holding
10.13
6.67
192.77%
TDUP
thredUP
8.00
6.30
370.59%
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.