Atlas Pearls Ltd (ATP) AI Stock Analysis

• Market Cap: AU$69.76M
• Dividend Yield: 12.5%
• Average Volume (3M): 423.23K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.84
• Revenue Growth: -18.16%
• EPS Growth: -9.88%
• Country: AU
• Employees: 1,200
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 439,042,570
• 10 Day Avg. Volume: 199,327
• 30 Day Avg. Volume: 423,233
• PEG Ratio: -0.11
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 81 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Atlas Pearls Ltd's strong financial performance and attractive valuation are key strengths, supported by bullish technical indicators. The stock is well-positioned for growth, though technical signals suggest caution due to potential overbought conditions.

Atlas Pearls Ltd Business Overview & Revenue Model

Company Description

Atlas Pearls Ltd (ATP) is an Australian-based company specializing in the production and distribution of high-quality South Sea pearls. The company operates across several sectors including pearl farming, jewelry design, and retail. Atlas Pearls Ltd is renowned for its sustainable and ethical farming practices, producing some of the most sought-after pearls in the global market.

How the Company Makes Money

Atlas Pearls Ltd generates revenue through the cultivation and sale of South Sea pearls. The company's primary revenue streams include wholesale distribution to international jewelry manufacturers and retailers, as well as direct sales through its own jewelry lines and retail outlets. Key factors contributing to its earnings include strategic partnerships with luxury brands and a focus on sustainable farming practices, which enhance the marketability and premium pricing of its pearls. Additionally, Atlas Pearls Ltd engages in research and development to continuously improve pearl quality, thereby maintaining its competitive edge in the industry.

Atlas Pearls Ltd Financial Statement Overview

Summary

Atlas Pearls Ltd demonstrates strong financial performance with significant revenue growth, robust profit margins, and a stable balance sheet with low leverage. Strong cash flow supports future growth, but reliance on equity limits leverage-driven expansion.

Income Statement

Atlas Pearls Ltd has demonstrated strong revenue growth with a significant increase from $27.2M in 2023 to $41.7M in 2024. The gross profit margin is robust at 75.8%, and the net profit margin has improved to 75.5%, indicating efficient cost management. The EBIT and EBITDA margins have also seen improvements, showcasing enhanced operational efficiency.

Balance Sheet

The company has a healthy balance sheet with a low debt-to-equity ratio of 0.005 and a strong equity ratio of 79.5%, indicating financial stability. The return on equity is impressive at 56.7%, showcasing effective utilization of shareholder funds. However, the high proportion of equity suggests limited leverage, which might restrict growth potential.

Cash Flow

Atlas Pearls Ltd has shown strong cash flow generation with a substantial increase in operating cash flow to $20.7M. The free cash flow has also improved to $18.8M, ensuring liquidity. The operating cash flow to net income ratio is robust at 0.66, although the free cash flow to net income ratio suggests room for improvement.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	41.71M	27.20M	21.51M	18.28M	13.74M
Gross Profit	31.63M	16.30M	12.27M	9.75M	2.77M
EBITDA	40.17M	10.08M	5.99M	8.99M	-5.98M
Net Income	31.47M	9.09M	4.59M	6.72M	-8.08M
Balance Sheet
Total Assets	69.85M	40.07M	31.52M	28.05M	22.30M
Cash, Cash Equivalents and Short-Term Investments	17.62M	7.85M	3.00M	3.02M	718.30K
Total Debt	287.43K	223.13K	1.40M	4.52M	4.85M
Total Liabilities	14.34M	5.98M	7.14M	9.63M	8.66M
Stockholders Equity	55.52M	34.08M	24.37M	18.42M	13.64M
Cash Flow
Free Cash Flow	18.81M	6.29M	3.38M	2.52M	-2.24M
Operating Cash Flow	20.66M	8.45M	4.99M	3.77M	-1.29M
Investing Cash Flow	-1.85M	-2.16M	-1.60M	-1.25M	424.35K
Financing Cash Flow	-7.78M	-1.26M	-3.15M	-544.64K	92.02K

Atlas Pearls Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ATP, the sentiment is Positive. The current price of 0.16 is above the 20-day moving average (MA) of 0.16, above the 50-day MA of 0.15, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.96 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ATP.

Atlas Pearls Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATP	81 Outperform	AU$69.76M	2.93	40.23%	12.50%	-18.16%	-9.88%
LOV	69 Neutral	AU$3.54B	41.04	82.71%	3.12%	11.86%	14.62%
ABY	68 Neutral	AU$70.47M	38.08	4.65%	―	5.51%	244.64%
CTT	62 Neutral	AU$123.90M	49.22	5.40%	―	34.18%	-88.26%
Sector *	62 Neutral	AU$2.86B	27.61	4.79%	5.15%	2.38%	-31.70%
FFI	57 Neutral	AU$58.86M	26.46	4.15%	4.36%	8.87%	-37.25%
MHJ	50 Neutral	AU$150.08M	148.08	0.53%	13.29%	2.15%	-92.33%

Atlas Pearls Ltd Corporate Events

Atlas Pearls Achieves Strong Sales at Kobe Auction, Reinforces Market Position

Atlas Pearls Ltd reported a successful auction in Kobe, Japan, with sales of 75,803 pearls generating $6.5 million in revenue. The auction highlighted the company’s pricing strategy resilience and strong market demand, with an increase in average dollar per index point from previous auctions. The event’s hybrid model attracted significant global participation, reinforcing Atlas Pearls’ market positioning and strategic focus on quality. The company withheld some pearls for alternative sales channels to optimize returns, demonstrating a strategic approach to maximizing value.