ATRenew Inc.
ATRenew Inc. Fundamental Analysis
ATRenew Inc. (RERE) shows weak financial fundamentals with a PE ratio of 32.53, profit margin of 1.44%, and ROE of 7.50%. The company generates $29.4B in annual revenue with strong year-over-year growth of 25.93%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze RERE's fundamental strength across five key dimensions:
Efficiency Score
WeakRERE struggles to generate sufficient returns from assets.
Valuation Score
ModerateRERE shows balanced valuation metrics.
Growth Score
ExcellentRERE delivers strong and consistent growth momentum.
Financial Health Score
ExcellentRERE maintains a strong and stable balance sheet.
Profitability Score
WeakRERE struggles to sustain strong margins.
Key Financial Metrics
Is RERE Expensive or Cheap?
P/E Ratio
RERE trades at 32.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, RERE's PEG of 0.11 indicates potential undervaluation.
Price to Book
The market values ATRenew Inc. at 2.37 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 29.14 times EBITDA. This signals the market has high growth expectations.
How Well Does RERE Make Money?
Net Profit Margin
For every $100 in sales, ATRenew Inc. keeps $1.44 as profit after all expenses.
Operating Margin
Core operations generate 1.72 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.50 in profit for every $100 of shareholder equity.
ROA
ATRenew Inc. generates $5.35 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
ATRenew Inc. generates limited operating cash flow of $0.00, signaling weaker underlying cash strength.
Free Cash Flow
ATRenew Inc. generates weak or negative free cash flow of $0.00, restricting financial flexibility.
FCF Per Share
Each share generates $0.00 in free cash annually.
FCF Yield
RERE converts 0.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.11
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.37
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.70
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.06
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.30
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.08
vs 25 benchmark
How RERE Stacks Against Its Sector Peers
| Metric | RERE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.53 | 25.25 | Worse (Expensive) |
| ROE | 7.50% | 1170.00% | Weak |
| Net Margin | 1.44% | 742.00% | Weak |
| Debt/Equity | 0.06 | 0.77 | Strong (Low Leverage) |
| Current Ratio | 3.30 | 9.19 | Strong Liquidity |
| ROA | 5.35% | -6467.00% (disorted) | Weak |
RERE outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews ATRenew Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-78.51%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
99.94%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
108.10%
Industry Style: Cyclical, Growth, Discretionary
High Growth