One-glance verdict
Undervalued
$28.60 our estimate vs market $3.97
Wall Street consensus: $6.61 (-76.9% lower than our fair-value estimate)
86% below our estimate, below the bear case
Fundamentals snapshot
ATRenew Inc.
RERE · NYQ · Consumer Cyclical · Internet Retail
Current price
$3.97
52-week range
$3.50 - $6.47
Market cap
$879.32M
Balance sheet
Healthy
75.55x Strong cushion
Net cash $185.38M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 28.9% last year.
- Reward Returns 12.4% on equity, ahead of 25% of its peers.
- Reward Free cash flow was positive in 3/10 years.
- Risk Stock trades 241.1% above its 5-year average P/E.
What this company does
ATRenew Inc.
ATRenew is a Chinese company that operates an online marketplace for used electronics like smartphones and tablets. It makes money by buying, fixing up, and reselling these devices, as well as by charging other sellers to use its platform. This matters because the company is tapping into the growing demand for more affordable, pre-owned gadgets as new ones become more expensive.
How the company got here
ATRenew started in 2011 in Shanghai, China, with the mission to give a second life to used goods, initially focusing on recycling mobile phones. Over the years, it expanded to a wider range of consumer electronics and grew its presence both online and with physical stores across China. A key turning point was in 2019 when it acquired the Paipai Marketplace from the e-commerce giant JD.com, which also became a major partner and shareholder. The company was formerly known as AiHuiShou and rebranded to ATRenew in 2020 before going public on the New York Stock Exchange in 2021.
What it actually does
ATRenew runs a large platform in China for recycling and reselling used consumer electronics like phones, laptops, and tablets. Think of it as a high-tech recycling and trade-in service that inspects, grades, and then resells these devices, extending their lifespan. They operate a network of over 2,000 physical stores called AHS Recycle, where people can bring in their old gadgets. The company also partners with major electronics brands and online retailers, like Apple and JD.com, to handle their official trade-in programs.
Product Sales (1P Business)
This is the company's largest business, making up the vast majority of its revenue. In this model, called 'first-party' or 1P, ATRenew buys used electronics directly from individuals and businesses, taking ownership of the products as its inventory (the collection of goods a business holds for sale). After inspecting, grading, and sometimes repairing the devices in its automated centers, ATRenew sells them to consumers through its online marketplaces or to other businesses. This is their primary way of making money, by selling these pre-owned goods for more than they paid to acquire and process them.
Platform Services (3P Business)
This is a smaller but growing part of the company that generates service revenue. In this 'third-party' or 3P model, ATRenew acts as a middleman, running online marketplaces where other merchants can sell their own pre-owned electronics to businesses or directly to consumers. For providing the platform, inspection services, and facilitating these transactions, ATRenew charges a commission (a percentage of the sale price). This segment also includes newer recycling categories like luxury bags and gold, where the company avoids inventory risk (the danger of the items losing value before being sold) by simply connecting buyers and sellers.
What management is betting on now
The company is focused on growing by expanding into more product types beyond electronics, such as luxury goods, watches, and gold. They are also working to sell more devices directly to consumers, which brings in a higher profit margin (the percentage of revenue left after accounting for the costs of the goods sold). Another key priority is international expansion, taking their proven business model and technology to markets outside of China, starting with a new consumer brand and a global trading platform launched in Hong Kong. Management is also focused on rewarding shareholders through share buybacks (when a company buys its own stock to reduce the number of shares available) and by recently starting to pay a dividend (a portion of a company's profits paid out to shareholders).
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$79.86M
FY2025 Q4
$-79.92M
Revenue
—
Net income
$48.09M
Diluted EPS
0.30
Operating cash flow
$-59.28M
Free cash flow
$-79.92M
Fetching…
Sources
Revenue
—
Net income
$-1.13M
Diluted EPS
-0.01
Operating cash flow
$88.06M
Free cash flow
$79.86M
Fetching…
Sources
Is it cheap or expensive?
Fair value $28.60 vs current price $3.97
Wall Street consensus is the average analyst price target: $6.61 (-76.9% lower than our fair-value estimate).
Our most-likely fair value is $28.60 a share — about 620.4% above today's price of $3.97, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $185.4M - more cash than debt. Interest coverage 75.6x.
Net debt
$-185.38M
Interest coverage
75.55x
ATRenew Inc.'s profit covers its interest bill about 75.6 times over. which is stronger than every peer shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
RERE
BASELINE
ATRenew Inc.
Total debt $79.70M Interest coverage 75.55x This is the baseline the peer rows are being compared against.
Total debt $7.14B Interest coverage 9.26x -88% vs RERE Carries about 8.2x less debt cushion than RERE.
Total debt $463.31M Interest coverage -0.86x -100% vs RERE This peer has almost no interest-payment cushion compared with RERE.
Total debt $4.33B Interest coverage 10.63x -86% vs RERE Carries about 7.1x less debt cushion than RERE.
Total debt $52.47M Interest coverage -9.45x -100% vs RERE This peer has almost no interest-payment cushion compared with RERE.
What you should know
The case for and against RERE
3 Rewards
1 Risk
Rewards
-
Revenue grew 28.9% last year.
-
Returns 12.4% on equity, ahead of 25% of its peers.
-
Free cash flow was positive in 3/10 years.
Risks
-
Stock trades 241.1% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
13.23x
Forward P/E
6.51x
P/B
1.59x
P/S
0.04x
EV/EBITDA
-0.41x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
20.7%
Operating margin
2.7%
Net margin
2.0%
ROE
12.4%
ROA
7.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.13x
Current ratio
2.36x
Quick ratio
1.05x
Total debt
$79.70M
Total cash
$265.08M
Growth
How the business has been compounding
Revenue TTM
$3.60B
Revenue 5Y CAGR
28.7%
EPS TTM
0.30
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$190.91M
Free CF TTM
$-79.92M
FCF margin
-2.2%
Dividend
Shareholder payout
Yield
2.5%
Payout ratio
34.8%
Last ex-div date
2026-04-06