Atlas Engineered Products Ltd (AEP) AI Stock Analysis

• Market Cap: C$46.64M
• Dividend Yield: N/A
• Average Volume (3M): 90.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: 9.30%
• EPS Growth: -151.79%
• Country: CA
• Employees: N/A
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 0.03
• Shares Outstanding: 66,629,250
• 10 Day Avg. Volume: 64,490
• 30 Day Avg. Volume: 90,285
• PEG Ratio: 3.85
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.55
• P/FCF Ratio: -46.72
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$0.69 ▲(1.47% Upside)

The score is held back primarily by weak profitability and cash flow (negative net margin, declining free cash flow, and poor cash conversion), despite manageable leverage. Technicals provide some support with the price above short-term moving averages and a firm RSI, but longer-term trend levels and a slightly negative MACD keep momentum only moderate. Valuation is also a headwind because the negative P/E reflects ongoing losses and no dividend yield data is available.

Positive Factors

Revenue Growth

Positive revenue growth indicates expanding market reach and product adoption, which can support long-term business sustainability.

Market Position

AEP's focus on innovation and sustainability in engineered wood products positions it well in the growing construction industry, supporting long-term competitiveness.

Manageable Leverage

A manageable debt-to-equity ratio provides financial stability and flexibility, allowing the company to invest in growth opportunities without excessive financial risk.

Negative Factors

Negative Net Margin

A negative net margin indicates profitability challenges, which can hinder reinvestment in the business and affect long-term financial health.

Declining Free Cash Flow

Declining free cash flow limits the company's ability to fund operations and growth initiatives, potentially impacting long-term sustainability.

Weak Cash Conversion

Weak cash conversion suggests inefficiencies in turning earnings into cash, which can constrain liquidity and operational flexibility over time.

Atlas Engineered Products Ltd Business Overview & Revenue Model

Company Description

Atlas Engineered Products Ltd. designs, manufactures, and sells engineered roof trusses, floor trusses, wall panels, and windows in Canada. The company offers floor joists and floor panels; and design, engineering, permitting, project management, and site assembly services. It also distributes a range of engineered wood products and patio doors for builders of residential and commercial wood-framed buildings, including single-family homes, townhouses, multi-story wood-framed residential buildings, commercial buildings, and agricultural structures. The company was incorporated in 1999 and is based in Nanaimo, Canada.

How the Company Makes Money

AEP generates revenue through the sale of its engineered wood products, which are used in various construction applications. The company operates a direct sales model, where it engages with customers such as builders and contractors to fulfill their specific needs for engineered wood solutions. Key revenue streams include the manufacturing and sale of roof trusses, floor systems, and wall panels, complemented by value-added services like design and engineering support. Additionally, AEP may benefit from strategic partnerships with suppliers and distributors, enhancing its market reach and operational efficiency. Economic trends in the construction industry, including housing starts and commercial development, significantly influence the company's earnings.

Atlas Engineered Products Ltd Financial Statement Overview

Summary

Atlas Engineered Products Ltd faces challenges with declining revenue and profitability, as evidenced by negative net income and cash flow issues. While the balance sheet shows a stable leverage position, the negative return on equity and cash flow difficulties pose risks. The company needs to address these issues to improve financial health and performance.

Income Statement

Atlas Engineered Products Ltd has experienced a decline in revenue growth, with a negative growth rate of -2.48% in the TTM period. The gross profit margin has decreased from 32.06% in 2022 to 24.01% in the TTM period, indicating reduced efficiency in cost management. The net profit margin has turned negative, reflecting a net loss. However, the company maintains a stable EBIT margin, suggesting some operational efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.51 in the TTM period, indicating a balanced leverage position. However, the return on equity has turned negative, reflecting a lack of profitability. The equity ratio remains stable, suggesting a solid capital structure.

Cash Flow

Atlas Engineered Products Ltd shows a significant decline in free cash flow, with a negative growth rate of 39.44% in the TTM period. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The negative free cash flow to net income ratio highlights cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	60.07M	55.83M	49.41M	61.90M	55.00M	35.73M
Gross Profit	12.17M	13.55M	13.56M	19.85M	16.15M	7.30M
EBITDA	5.37M	7.13M	9.52M	15.62M	12.37M	3.75M
Net Income	-527.94K	-212.00K	3.15M	8.83M	6.95M	228.99K
Balance Sheet
Total Assets	85.15M	80.71M	79.44M	50.49M	35.78M	27.09M
Cash, Cash Equivalents and Short-Term Investments	3.75M	13.13M	14.75M	16.12M	8.95M	1.82M
Total Debt	23.02M	24.55M	38.27M	15.25M	9.39M	9.23M
Total Liabilities	35.99M	32.10M	45.01M	21.62M	15.97M	14.16M
Stockholders Equity	49.16M	48.61M	34.43M	28.87M	19.81M	12.93M
Cash Flow
Free Cash Flow	-6.09M	-1.85M	3.86M	7.65M	8.26M	224.80K
Operating Cash Flow	3.16M	2.48M	4.48M	11.30M	9.58M	567.64K
Investing Cash Flow	-11.17M	-4.32M	-24.91M	-9.59M	-1.21M	-735.23K
Financing Cash Flow	-4.74M	217.72K	19.05M	5.46M	-1.24M	227.17K

Atlas Engineered Products Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AEP, the sentiment is Positive. The current price of 0.68 is above the 20-day moving average (MA) of 0.66, above the 50-day MA of 0.65, and below the 200-day MA of 0.78, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 58.42 is Neutral, neither overbought nor oversold. The STOCH value of 46.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AEP.

Atlas Engineered Products Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDT	69 Neutral	C$1.63B	17.40	21.68%	2.88%	6.26%	0.52%
ARE	65 Neutral	C$2.12B	253.91	0.92%	2.38%	25.68%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AEP	53 Neutral	C$46.64M	-81.61	-1.07%	―	9.30%	-151.79%
BYT	51 Neutral	C$7.88M	-18.94	-10.12%	―	-43.73%	59.26%
DRT	42 Neutral	C$168.81M	-16.54	-18.77%	―	-2.73%	-155.71%

Atlas Engineered Products Ltd Corporate Events

Atlas Engineered Products Reports Strong Q3 2025 Results with Strategic Expansion

Atlas Engineered Products Ltd reported a 23% year-over-year revenue increase for the third quarter of 2025, driven by both acquisitive and organic growth. The acquisition of Penn-Truss Manufacturing Inc. has expanded the company’s footprint into Saskatchewan, enhancing its national presence. Despite a competitive market impacting sales prices, the company achieved higher gross profits for the quarter due to increased revenues. The strategic acquisition and increased quotation activity provide confidence for continued growth into 2026.

The most recent analyst rating on (TSE:AEP) stock is a Hold with a C$0.50 price target. To see the full list of analyst forecasts on Atlas Engineered Products Ltd stock, see the TSE:AEP Stock Forecast page.