In the world of investing, past performance is not always indicative of future results, and this rings true for Aterian. While Natuzzi SpA recently experienced a remarkable price surge, Aterian's financial landscape presents a more challenging picture. With a profit margin of negative 19% and a net income from continuing operations showing a loss of 87.2 million, the company faces significant hurdles. Its current ratio of 1.54X suggests it can cover short-term liabilities, but the quarterly revenue growth decline of 21% raises concerns about its ability to generate sustainable growth. The market capitalization stands at a modest 23.8 million, reflecting investor caution. While insiders hold a substantial 22.44% of shares, institutional ownership is low at 7.94%, indicating limited confidence from larger investors. Aterian's journey may not mirror Natuzzi's recent success unless it can address these financial challenges and revitalize its growth trajectory. Many millennials are showing interest in the household durables sector, so we're keeping an eye on Aterian and Natuzzi SpA as potential short-term investment opportunities. We'll explore the competitive strengths of both companies.
Investment perspective, in general, refers to a viewpoint or opinion regarding investment opportunity in Aterian. It encompasses the assessment of an investment's potential risks and rewards, and expectations for its
performance over time. Several factors influence the investment perspective on Aterian, including investment goals, risk tolerance, time horizon, market conditions, and research and analysis. Investors have varying goals, such as capital preservation, income generation, or long-term growth. Risk tolerance plays a significant role in shaping an investor's perspective, with some being more risk-averse and others willing to take on higher risks for potential returns.
How important is Aterian's Liquidity
Aterian
financial leverage refers to using borrowed capital as a funding source to finance Aterian ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Aterian financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Aterian's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Aterian's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Aterian's total debt and its cash.
Aterian Gross Profit
Aterian Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Aterian previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Aterian Gross Profit growth over the last 10 years. Please check Aterian's
gross profit and other
fundamental indicators for more details.
What is driving Aterian Investor Appetite?
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now take a look at Aterian revenue. Based on the latest financial disclosure, Aterian reported 142.57
M of revenue.
This is 98.0% lower than that of the Household Durables sector and significantly higher than that of the
Consumer Discretionary industry. The revenue for all United States stocks is 98.49% higher than that of Aterian. As for Natuzzi SpA we see revenue of 321.86
M, which is much higher than that of the Consumer Discretionary
| Aterian | 142.57 Million |
| Sector | 0.0 |
| Natuzzi | 321.86 Million |
In the world of investing, patience often pays off. Aterian (NASDAQ: ATER) has caught the eye of investors wondering if it can replicate the impressive price surge seen by Natuzzi SpA. With a market capitalization of $23.79 million and a current ratio of 1.54X, Aterian is navigating a challenging landscape, particularly with a net income loss of $74.6 million. The stock's beta of 2.05 suggests higher volatility, which could mean substantial swings in either direction. As the company operates within the furnishings, fixtures, and appliances industry, investors should weigh its potential upside against the significant risks, including a 96% probability of bankruptcy..
Aterian is expecting lower volatility in November
Aterian's information ratio has inched up to 0.01, indicating a slight improvement in the stock's risk-adjusted performance. This small increase suggests that the company's market behavior might be stabilizing, with expectations of less volatility in November. For investors, this could be a positive sign, offering a more predictable trading environment and potentially steadier returns amid typical market ups and downs. However, Aterian still shows above-average semi-deviation, reflecting higher volatility over your investment period. Understanding these volatility trends can help investors make better timing decisions. During bear markets, increased volatility can significantly affect Aterian's stock price, causing stress as values drop. This often leads investors to adjust their portfolios, purchasing different assets as prices decline.
Our Takeaway on Aterian Investment
While few other entities under the furnishings, fixtures & appliances industry are still a bit expensive, Aterian may offer a potential longer-term growth to retail investors. With a less-than optimistic outlook for your 90 days horizon, it may be a good time to quit some or all of your Aterian holdings as it seems the potential growth was already fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Aterian.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Aina Ster do not own shares of Aterian. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
[email protected]