Atlas Engineered Products Ltd (AEP) AI Stock Analysis

• Market Cap: C$58.03M
• Dividend Yield: N/A
• Average Volume (3M): 154.37K
• Price to Earnings (P/E): 50.0
• Beta (1Y): 0.44
• Revenue Growth: 18.02%
• EPS Growth: -101.42%
• Country: CA
• Employees: N/A
• Sector: Utilities
• Sector Strength: 83
• Industry: Engineering & Construction
• EPS (TTM): -0.01
• Shares Outstanding: 66,699,250
• 10 Day Avg. Volume: 171,038
• 30 Day Avg. Volume: 154,369
• PEG Ratio: 0.45
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.58
• 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: C$1.50
• Price Target Upside: 72.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 63 Neutral
• Price Target: C$1.00 ▲(14.94%Upside)

The overall stock score for Atlas Engineered Products Ltd is primarily driven by its mixed financial performance, including revenue growth but profitability and cash flow challenges. The recent earnings call highlighted positive strategic moves and market expansion, contributing positively. However, the valuation remains a concern due to a negative P/E ratio, which affects the overall attractiveness of the stock.

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

Atlas Engineered Products Ltd generates revenue through the sale of its engineered wood products, which include roof trusses, floor trusses, and wall panels. These products are supplied to builders, contractors, and developers engaged in residential, commercial, and industrial construction projects. The company enhances its revenue streams by offering value-added services such as design and engineering consulting, which help clients optimize their construction projects. AEP's strategic acquisitions of other companies in the industry have also expanded its market presence and product offerings, contributing to its overall earnings. Additionally, Atlas Engineered Products maintains partnerships with suppliers and industry stakeholders to ensure a steady supply of raw materials and to foster innovation in its product offerings.

Atlas Engineered Products Ltd Financial Statement Overview

Summary

Atlas Engineered Products Ltd shows mixed financial performance with growth in revenue but facing challenges with profitability and cash flow in 2024. Debt management improved, yet sustaining profitability and cash flow remains crucial.

Income Statement

Atlas Engineered Products Ltd has shown a mixed performance in its income statement. Despite a slight decline in revenue in 2024 compared to 2023, there is a notable improvement in revenue from 2020 to 2023, indicating growth. However, the company reported a negative net income in 2024, impacting the net profit margin adversely. Gross profit margins have been relatively stable, but the declining EBIT and EBITDA margins in 2024 suggest challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a stable equity position with a healthy equity ratio. The debt-to-equity ratio has improved significantly from previous years, indicating better leverage management. However, the company's return on equity has fluctuated, with recent years showing a decreasing trend due to negative net income in 2024. Overall, the balance sheet is stable with manageable debt levels.

Cash Flow

The cash flow statement indicates challenges with free cash flow, which turned negative in 2024. Operating cash flow has been positive but declined significantly from 2023. The company needs to improve its cash generation and manage its capital expenditures effectively to sustain operations without relying heavily on financing activities.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
55.83M	49.41M	61.90M	55.00M	35.73M
	Gross Profit
13.55M	13.56M	19.85M	16.15M	7.30M
	EBIT
2.90M	5.26M	12.53M	9.88M	481.22K
	EBITDA
7.13M	9.52M	15.62M	12.37M	3.75M
	Net Income Common Stockholders
-212.00K	3.15M	8.83M	6.95M	228.99K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.13M	14.75M	16.12M	8.95M	1.82M
	Total Assets
80.71M	79.44M	50.49M	35.78M	27.09M
	Total Debt
24.55M	38.27M	15.25M	9.39M	9.23M
	Net Debt
11.42M	23.52M	-872.88K	442.82K	7.41M
	Total Liabilities
32.10M	45.01M	21.62M	15.97M	14.16M
	Stockholders Equity
48.61M	34.43M	28.87M	19.81M	12.93M
Cash Flow		Free Cash Flow
-1.85M	3.86M	7.65M	8.26M	224.80K
	Operating Cash Flow
2.48M	4.48M	11.30M	9.58M	567.64K
	Investing Cash Flow
-4.32M	-24.91M	-9.59M	-1.21M	-735.23K
	Financing Cash Flow
217.72K	19.05M	5.46M	-1.24M	227.17K

Atlas Engineered Products Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.87
• 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 Neutral. The current price of 0.87 is above the 20-day moving average (MA) of 0.85, above the 50-day MA of 0.83, and below the 200-day MA of 1.09, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 51.66 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
BLM	76 Outperform	C$54.22M	2,085.71	0.16%	―	49.38%	-93.75%
Sector *	64 Neutral	$8.58B	10.36	4.24%	4.64%	4.07%	-13.04%
AEP	63 Neutral	C$58.03M	50.00	-0.16%	―	18.02%	-101.42%
ENW	59 Neutral	C$42.21M	345.45	-10.19%	―	89.54%	―
BYT	41 Neutral	C$1.89M	―	-7.51%	―	-11.69%	-35.00%
MSP	21 Underperform	C$2.46M	―	22.10%	―	―	80.69%

Atlas Engineered Products Ltd Corporate Events

Atlas Engineered Products Expands with Acquisition of Truss-Worthy Construction

Atlas Engineered Products Ltd. has completed the acquisition of Truss-Worthy Construction Systems Inc., a manufacturer of roof trusses and supplier of engineered wood products in Ontario, Canada. This acquisition marks AEP’s ninth manufacturing facility, enhancing its strategic positioning in Eastern Canada and aligning with its long-term growth strategy. The acquisition, valued at $1.575 million for the business and $850,000 for the land and buildings, is expected to leverage AEP’s operating synergies and expand its market reach, particularly with the development potential of a recently purchased 42-acre property in Colborne, Ontario.

The most recent analyst rating on (TSE:AEP) stock is a Buy with a C$2.25 price target. To see the full list of analyst forecasts on Atlas Engineered Products Ltd stock, see the TSE:AEP Stock Forecast page.

Atlas Engineered Products Achieves 21% Revenue Growth in Q1 2025

Atlas Engineered Products Ltd reported a 21% year-over-year increase in revenue for the first quarter of 2025, driven by significant growth in wall panel and engineered wood product sales. Despite a net loss, the company’s adjusted EBITDA rose by 137%, reflecting strong operational performance amid challenging economic conditions. The company continues to expand its market reach, particularly in the wood frame commercial building sector, and anticipates further growth through increased quoting volumes and strategic initiatives.

The most recent analyst rating on (TSE:AEP) stock is a Buy with a C$2.25 price target. To see the full list of analyst forecasts on Atlas Engineered Products Ltd stock, see the TSE:AEP Stock Forecast page.

Atlas Engineered Products to Announce Q1 2025 Financial Results

Atlas Engineered Products Ltd. announced it will release its financial results for the first quarter of 2025 on May 27, 2025, before the market opens. The company will host a conference call later that day to discuss the results, which will be led by CEO Hadi Abassi and CFO Melissa MacRae. This announcement is part of AEP’s ongoing efforts to maintain transparency with stakeholders and reflects its strategic approach to growth and market consolidation.

The most recent analyst rating on (TSE:AEP) stock is a Buy with a C$2.25 price target. To see the full list of analyst forecasts on Atlas Engineered Products Ltd stock, see the TSE:AEP Stock Forecast page.

Atlas Engineered Products Achieves 13% Revenue Growth in 2024 Amid Market Challenges

Atlas Engineered Products Ltd reported a 13% increase in annual revenue for 2024, reaching $55.8 million, driven by significant growth in wall panel and engineered wood product sales. Despite a challenging market with declining housing starts in key areas, the company maintained a strong adjusted EBITDA margin of 15% and plans to continue its growth strategy through organic expansion and strategic acquisitions. However, the company faced a net loss due to increased competition and costs associated with future expansion plans.

Atlas Engineered Products to Announce Q4 2024 Financial Results

Atlas Engineered Products Ltd. announced it will release its financial results for Q4 and the year ending December 31, 2024, on April 25, 2025. The company will host a conference call on the same day to discuss these results, which could provide insights into its operational performance and strategic positioning in the truss and engineered products industry.