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ATRenew Inc. Sponsored ADR (RERE)
:RERE
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ATRenew Inc. Sponsored ADR
(NYSE:RERE)
51Neutral
ATRenew Inc. Sponsored ADR (RERE) vs. S&P 500 (SPY)
Market Cap
$538.58M
Dividend YieldN/A
Average Volume (3M)1.03M
Price to Earnings (P/E)―
Beta (1Y)0.83
Revenue Growth24.19%
EPS Growth95.39%
CountryUS
Employees2,096
SectorConsumer Cyclical
Sector Strength63
IndustrySpecialty Retail
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding132,037,490
10 Day Avg. Volume1,197,184
30 Day Avg. Volume1,029,049
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)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., 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. makes money primarily through the resale of pre-owned electronic devices, particularly smartphones. The company sources these devices through a variety of channels, including consumer trade-ins, partnerships with electronics retailers, and corporate clients looking to dispose of outdated inventory. After acquiring these devices, ATRenew inspects, grades, and refurbishes them to meet quality standards before reselling them through online and offline platforms. The company also generates revenue from providing recycling services to partners and consumers, positioning itself as an environmentally responsible choice in the consumer electronics market. Strategic partnerships with major retailers and technology companies enhance ATRenew's access to a steady stream of used devices, further bolstering its revenue potential.
ATRenew Inc. Sponsored ADR Financial Statement Overview
Summary
ATRenew Inc. has demonstrated strong revenue growth and stable gross profit margins, but profitability remains a major challenge, with negative net margins. The balance sheet is stable, featuring healthy equity levels, yet historical negative equity is concerning. Cash flow management is a critical area for improvement due to the lack of consistent free cash flow.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 | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 16.33B | 12.97B | 9.87B | 7.78B | 4.86B | Gross Profit |
| 3.24B | 2.63B | 2.27B | 2.04B | 1.25B | EBIT |
| 28.97M | -173.34M | -2.62B | -895.07M | -458.78M | EBITDA |
| 362.70M | 192.38M | -2.16B | -521.33M | -128.54M | Net Income Common Stockholders |
| -8.23M | -156.25M | -2.47B | -816.55M | -470.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.55B | 2.39B | 2.49B | 1.87B | 1.02B | Total Assets |
| 5.09B | 5.49B | 5.05B | 7.50B | 5.23B | Total Debt |
| 304.93M | 405.94M | 157.51M | 165.45M | 595.70M | Net Debt |
| -1.67B | -1.57B | -1.55B | -1.19B | -322.37M | Total Liabilities |
| 1.40B | 1.78B | 1.17B | 1.08B | 10.44B | Stockholders Equity |
| 3.69B | 3.71B | 3.88B | 6.42B | -5.21B |
| Cash Flow | Free Cash Flow | |||
| 0.00 | 158.72M | 819.83M | -1.09B | -450.71M | Operating Cash Flow |
| 0.00 | 243.90M | 881.30M | -1.02B | -412.87M | Investing Cash Flow |
| 0.00 | 172.01M | -516.68M | -670.40M | 18.63M | Financing Cash Flow |
| 0.00 | 68.70M | -186.04M | 2.29B | 929.96M |
ATRenew Inc. Sponsored ADR Technical Analysis
Neutral
2.45
Price Trends
2.80
Negative
2.83
Negative
2.69
Negative
Market Momentum
-0.11
Negative
47.07
Neutral
94.50
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RERE, the sentiment is Neutral. The current price of 2.45 is above the 20-day moving average (MA) of 2.34, below the 50-day MA of 2.80, and below the 200-day MA of 2.69, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 47.07 is Neutral, neither overbought nor oversold. The STOCH value of 94.50 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $531.53M | ― | -79.06% | ― | -6.95% | -0.73% | |
61 Neutral | $6.55B | 11.72 | 3.07% | 4.01% | 2.66% | -21.27% | |
53 Neutral | $150.82M | ― | -4.63% | ― | 5.34% | 34.89% | |
53 Neutral | $380.80M | ― | -19.66% | ― | -2.11% | -6.49% | |
51 Neutral | $538.58M | ― | -0.22% | ― | 24.19% | 95.39% | |
49 Neutral | $484.64M | ― | -44.36% | ― | -13.54% | -3.33% | |
46 Neutral | $297.58M | ― | -127.01% | ― | -15.87% | ― |
* Consumer Cyclical Sector Average
Performance Comparison
RERE
ATRenew Inc. Sponsored ADR
2.45
0.19
8.41%
BZUN
Baozun
2.64
-0.11
-4.00%
JMIA
Jumia Technologies AG
2.43
-2.63
-51.98%
DADA
Dada Nexus
1.93
-0.24
-11.06%
YSG
Yatsen Holding
4.15
-0.19
-4.38%
TDUP
thredUP
4.25
2.45
136.11%
ATRenew Inc. Sponsored ADR Earnings Call Summary
Earnings Call Date:Mar 11, 2025
(Q4-2024)
| % Change Since: -22.96%|
Next Earnings Date:May 27, 2025
Earnings Call Sentiment Positive
ATRenew reported strong revenue and profitability growth for 2024, exceeding targets and showcasing success in 1P consumer sales and multicategory recycling expansion. Despite challenges in overseas business and increased operating expenses, the company's strategic investments in brand building and market expansion provided positive momentum.Q4-2024 Updates
Positive Updates
Record Revenue Growth
Total net revenues for full year 2024 reached RMB16.33 billion, representing a 25.9% year-over-year growth. Fourth quarter revenues exceeded guidance, growing 25.2% year-over-year to RMB4.85 billion.
Significant Profitability Increase
Non-GAAP income from operations for the full year 2024 was RMB410 million, growing 62.8% year-on-year. Fourth quarter non-GAAP income was RMB130 million, increasing 61% year-over-year.
Strong 1P to Consumer Sales
Total GNV of 1P to consumer sales reached RMB5.5 billion in 2024. Retail revenue as a percentage of net product revenues was 29% in the fourth quarter, up by 8 percentage points year-on-year.
Expansion of Multicategory Recycling
Multicategory recycling services grew in existing stores, with transaction volume increasing nearly threefold year-over-year, contributing 8.6% of total service revenue.
Brand Building and Marketing Success
Spent 100 million Yuan on new media marketing to increase brand exposure, establishing AHS Recycle as a prominent brand in the second-hand industry.
Negative Updates
Challenges in Overseas Business
Closure of certain loss-making overseas businesses resulted in downsized overseas product revenue.
Increase in Operating Expenses
Fulfillment expenses increased by 31.8% in the fourth quarter, with non-GAAP fulfillment expenses rising 32.7% due to personnel and logistics costs.
Apple Trading Business Adjustments
Adjusted pricing and operational strategy in Apple official trading business, impacting revenue which was RMB1.05 billion in 2024.
Company Guidance
During the earnings call for ATRenew Inc.'s fourth quarter and full year 2024, the company reported that it exceeded its revenue targets, with fourth-quarter revenues growing by 25.2% year-over-year to RMB 4.85 billion and full-year revenues reaching RMB 16.33 billion, marking a 25.9% increase. Non-GAAP operating income for the fourth quarter was RMB 130 million, with a full-year figure of RMB 410 million, reflecting respective growth rates of 61% and 62.8%. The non-GAAP operating margins were 2.7% for the fourth quarter and 2.5% for the year. The total number of transactions surpassed 35.3 million, driven by strong government support and subsidies. Additionally, the company's one PtoC sales achieved a new milestone with a GNV of RMB 5.5 billion in 2024, with retail revenue accounting for 29% of net product revenues in the fourth quarter, an 8-percentage-point increase from the previous year. The company plans to focus on expanding its store network and fulfillment capabilities, aiming to establish 5,000 stores and a 5,000-member service team over the next three years. For the first quarter of 2025, ATRenew anticipates revenues between RMB 4,550 million and RMB 4,650 million, representing a year-over-year increase of 24.6% to 27.4%.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.