Atlas Pearls Ltd (ATP) AI Stock Analysis

• Market Cap: AU$69.76M
• Dividend Yield: 12.5%
• Average Volume (3M): 346.93K
• Price to Earnings (P/E): 2.9
• Beta (1Y): 0.85
• Revenue Growth: -18.16%
• EPS Growth: -9.88%
• Country: AU
• Employees: 1,200
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Luxury Goods
• EPS (TTM): 0.03
• Shares Outstanding: 439,042,570
• 10 Day Avg. Volume: 626,764
• 30 Day Avg. Volume: 346,933
• PEG Ratio: -0.01
• Price to Book (P/B): 0.16
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -8.92
• 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: N/A
• Number of Analyst Covering: 0

• Rating: 86 Outperform
• Price Target: AU$0.00 ▼(-100.00%Downside)

Atlas Pearls Ltd scores highly due to its strong valuation metrics and positive technical indicators. The financial performance is robust, driven by growth and profitability. The absence of earnings call data or notable corporate events did not impact the score.

Atlas Pearls Ltd Business Overview & Revenue Model

Company Description

Atlas Pearls Limited produces and supplies south sea pearls in Australia, Indonesia, and internationally. It owns and operates silver and white pearl farms. The company also manufactures and sells pearl jewelry and related products. In addition, it operates online retail stores. The company was formerly known as Atlas Pearls and Perfumes Limited and changed its name to Atlas Pearls Ltd in December 2017. Atlas Pearls Limited was incorporated in 1987 and is headquartered in Subiaco, Australia.

How the Company Makes Money

Atlas Pearls Ltd makes money primarily through the cultivation and wholesale distribution of South Sea pearls. The company's revenue model is centered around the sale of these pearls to jewelry manufacturers, designers, and retailers around the world. Atlas Pearls operates several pearl farms in Indonesia, where it employs environmentally sustainable practices to nurture and harvest pearls. In addition to direct sales, the company may engage in partnerships with luxury brands to supply high-quality pearls for exclusive jewelry collections. Key factors contributing to its earnings include the quality and rarity of its pearls, strong relationships with industry partners, and a reputation for sustainability and ethical production.

Atlas Pearls Ltd Financial Statement Overview

Summary

Atlas Pearls Ltd demonstrates strong financial health with significant revenue growth, robust profit margins, and stable cash flow generation. The balance sheet is solid with low leverage, although high equity reliance may limit growth potential.

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	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	33.99M	41.71M	27.20M	21.51M	18.28M	13.74M
Gross Profit	23.70M	31.63M	16.30M	12.27M	9.75M	2.77M
EBITDA	24.52M	40.17M	10.08M	5.99M	8.99M	-5.98M
Net Income	23.78M	31.47M	9.09M	4.59M	6.72M	-8.08M
Balance Sheet
Total Assets	83.94M	69.85M	40.07M	31.52M	28.05M	22.30M
Cash, Cash Equivalents and Short-Term Investments	19.39M	17.62M	7.85M	3.00M	3.02M	718.30K
Total Debt	405.72K	287.43K	223.13K	1.40M	4.52M	4.85M
Total Liabilities	17.50M	14.34M	5.98M	7.14M	9.63M	8.66M
Stockholders Equity	66.44M	55.52M	34.08M	24.37M	18.42M	13.64M
Cash Flow
Free Cash Flow	7.84M	18.81M	6.29M	3.38M	2.52M	-2.24M
Operating Cash Flow	11.25M	20.66M	8.45M	4.99M	3.77M	-1.29M
Investing Cash Flow	-3.96M	-1.85M	-2.16M	-1.60M	-1.25M	424.35K
Financing Cash Flow	-10.36M	-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: Negative
• RSI: Neutral
• STOCH: Negative

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 0.15, above the 50-day MA of 0.14, and above the 200-day MA of 0.14, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 67.23 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 is Negative, 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	86 Outperform	AU$69.76M	2.93	40.23%	12.50%	-18.16%	-9.88%
Sector *	56 Neutral	HK$23.97B	4.08	-1.57%	10.06%	0.06%	-64.88%
LYSCF		$5.56B	168.85	2.27%	―	―	―
O9C		$23.30M	―	-0.86%	―	―	―
GEM	66 Neutral	AU$914.30M	14.08	7.43%	5.91%	3.24%	21.10%
GWR	47 Neutral	AU$29.12M	1.45	17.20%	―	―	―
KLL	36 Underperform	$50.79M	―		―	―	―

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.

Atlas Pearls Ltd Announces Director’s Share Transfer

Atlas Pearls Ltd announced a change in the director’s interest notice, indicating that Timothy Martin has transferred his indirect interest of 17,880,240 fully paid ordinary shares in Jingie Investments Pty Ltd through an off-market trade. This transfer was made to a Martin family-owned entity, which does not require disclosure under Mr. Martin’s interest notice, potentially impacting the company’s shareholding structure and stakeholder perceptions.

Atlas Pearls Achieves Strong Sales at Kobe Auction Amid Strategic Expansion

Atlas Pearls Ltd reported a successful auction in Kobe, Japan, with sales of 58,345 pearls generating $7.5 million in revenue, marking an increase in average price per piece from previous auctions. The company’s strategic focus on expanding sales channels and improving customer relationships has contributed to its strong market positioning, despite external uncertainties such as US tariff announcements. Atlas Pearls is also enhancing its retail experience with an upgraded showroom in North Bali, set to open in May, and continues to develop a comprehensive Sales and Marketing Strategy aimed at maximizing pearl value through FY30.