Aterian, Inc. is a technology-enabled consumer products company that operates in North America and internationally. It delivers a comprehensive Artificial Intelligence Marketplace e-Commerce Engine, which is a software technology platform that uses machine learning, natural language processing, and data analytics to design, develop, market, and sell products.
Aterian, Inc. has an extensive portfolio of products that includes home and kitchen appliances, kitchenware, heating, cooling, and air quality appliances, health and beauty products, and essential oils. Its primary brands are hOmeLabs, Vremi, Squatty Potty, Xtava, RIF6, Aussie Health, Holonix, Truweo, Mueller, Pursteam, Pohl and Schmitt, Healing Solutions, Photo Paper Direct, Step and Go, and Spiralizer. All of these can be purchased through Aterian, Inc’s owned and operated websites, other marketplaces, or through Amazon.
Since its creation in 2014, the company has grown to 78 full-time employees and is headquartered in New York, New York. It is dedicated to providing innovative consumer products that make life easier and simpler for its customers, which gives them a competitive edge in the marketplace.
Aterian, Inc. is a publicly-traded company with a current price of 0.36 USD, and a wide variety of financial metrics, as listed above.
Aterian, Inc. is experiencing weak top-line growth, with revenue declining 16.30% in the most recent quarter. Gross profit margins, however, are still at a relatively healthy 47.12%. Operating cash flow has been negative on a quarterly basis, -11.72M USD, however this is a positive increase year-over-year.
The company has a current ratio of 2.00 and a debt to equity ratio of 25.91, indicating that their debt-load is well-managed. As well, total cash on hand is 33.91M USD, and total cash per share is 0.44.
Aterian, Inc. is also producing weak operating and profit margins, with operating margins sitting at -26.29% and profit margins at -83.64%. These weak figures are reflected in their return on equity, a negative -129.88%. These figures are also reflected in their EBITDA margins, which is negative -22.82%.
The mean recommendation for Aterian, Inc. is a Hold, with 3 analyst opinions on the company. The current target high price is 2.75 USD, the target low price is 1.00 USD, and the target mean price is 1.92 USD.
Overall, Aterian, Inc. is performing weakly, with revenue declining aggressively, and weak levels of operating and profit marings. However, their cash position is relatively healthy, and their debt load is manageable. The recommendation is to hold the stock, based on the current weak figures.
During a recession, Aterian, Inc. thrives through cost cutting and price increases that allow for a healthier margin. This allows the company to continue to invest in the research, development, and production of new products that ensure customer satisfaction. The company emphasizes low cash burn as part of its “making money when we sell” mentality. To ensure cost efficiency, it limits staff spend and looks to partners to support business operations. The company also utilizes cost-effective ways to manufacture and assemble products.
The machinery and automation used in production lines lowers the cost of labor and eliminates the need of additional staff. Additionally, Aterian, Inc. focuses on increasing its product sales by leaning on its strong digital marketing team. This allows them to “find their customer and keep them coming back.” This team specializes in digital channels such as SEO, Amazon, Display Ads, Email, and Social Media. Thus, Aterian, Inc. ensures that it is visible to potential customers when they are researching products.
Aterian Inc. has been able to stay competitive during the recession by focusing on customer service as well as competitive pricing. It also looks for ways to grow its business through partnerships and leveraging their customer base. All of this is done with a long-term perspective, ensuring that Aterian Inc. has a continued success in the marketplace.
Aterian, Inc. is prepared to face the challenge of high inflation. It takes two approaches to successful inflation management and to accomplish this, the company focuses on containing its operational costs and considering external savings opportunities.
In order to contain operational costs, the company takes a variety of initiatives to control or reduce costs without degrading the quality of products and services. The measures they take include controlling inventory expenses using economy of scale, increasing the use of technology such as automation, reducing process re-work and cycle time, as well as improving inventory and resource planning.
The company also looks to the external environment for different savings opportunities. This can include negotiating longer payment terms with suppliers and seeking out competitive pricing for goods, services, and materials. Aterian, Inc. understands that cooperation and relationship building with vendors and suppliers is essential to the success of bargaining for better terms and cost savings.
Finally, the company takes a proactive approach to mitigate and adjust to the effects of inflation. Aterian, Inc. recognizes that changes in the economy can cause costs or expense increases, and is aware of the risks and challenges of high inflation. To minimize these risks, Aterian, Inc. is prepared to take advantage of pricing and marketplace strategies, trimming costs, investing in technology, and entering into new and innovative partnerships to continue being a leader in its industry.
Risks for Investing in Aterian, Inc. stock include:
1. Declining revenues: Revenue is declining on both a quarterly and yearly basis, which indicates weak performance going forward.
2. Weak margins: Operating and profit margins are weak, indicating that the company is not operating efficiently or selling products at a profit.
3. High debt load: The debt to equity ratio is above 25%, which indicates that the company is taking on a high amount of debt to finance its operations.
4. Variable analyst recommendations: Several different analysts are predicting variable targets prices, which could make it more difficult to make an informed investment decision.