Aterian, Inc. (ATER) stock analysis

P/E against its history

Not enough price and earnings history to compare.

P/E against the industry

Needs positive earnings and enough profitable companies in the industry.

EV/EBITDA against its history

Needs positive EBITDA and price history.

P/B below the industry

Aterian's price-to-book of 1.32 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.01.

Trading below fair value

The share price of $0.93 is below our fair value estimate of $2.21.

Margin of safety over 20%

The price is 58.1% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -32.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growth over 3 years

Needs positive EPS three years ago and today.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew -33.0% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is -0.2%.

Guidance issued

The latest outlook (six months ending December 31, 2025 net revenue, Nov 13, 2025) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 56.1% over the last twelve months, against 61.8% a year earlier.

Return on equity under 15%

Return on equity was -91.3% over the last twelve months and averaged -108% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -112%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Aterian's return on equity of -91.3% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.3%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was -49.3% over the last twelve months, against a 5-year average of -55.2%.

Net margin below the industry

Aterian's net margin of -49.3% is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -3.1%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt coverage

Needs operating cash flow.

Interest not well covered

Operating income covers interest expense -16.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 2.13 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -43.25; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Aterian has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.