tiprankstipranks
Trending News
More News >
Atlas Engineered Products Ltd (TSE:AEP)
:AEP
Canadian Market
Advertisement

Atlas Engineered Products Ltd (AEP) AI Stock Analysis

Compare
39 Followers

Top Page

TSE:AEP

Atlas Engineered Products Ltd

(AEP)

Rating:50Neutral
Price Target:
C$1.00
▲(21.95% Upside)
Atlas Engineered Products Ltd's overall stock score reflects a combination of mixed financial performance and bearish technical indicators, offset by positive strategic initiatives and recent acquisitions. While the company faces profitability and cash flow challenges, its strategic growth initiatives and revenue increases provide a positive outlook.

Atlas Engineered Products Ltd (AEP) vs. iShares MSCI Canada ETF (EWC)

Atlas Engineered Products Ltd Business Overview & Revenue Model

Company DescriptionAtlas 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 MoneyAtlas Engineered Products Ltd generates revenue primarily through the sale of its engineered wood products, which are tailored to meet the requirements of various construction projects. The company sells directly to builders, contractors, and developers, catering to both large-scale commercial projects and individual residential constructions. Key revenue streams include custom-designed truss systems, prefabricated wall panels, and engineered flooring solutions. Additionally, AEP enhances its earnings through strategic acquisitions of local businesses in the engineered wood sector, which expands its market reach and customer base. The company also benefits from strong partnerships with construction firms and a focus on delivering superior service and customized solutions that drive repeat business and long-term contracts.

Atlas Engineered Products Ltd Earnings Call Summary

Earnings Call Date:May 27, 2025
(Q1-2025)
|
% Change Since: 2.50%|
Next Earnings Date:Aug 25, 2025
Earnings Call Sentiment Positive
Atlas Engineered Products reported strong revenue growth and increased market activity, driven by strategic expansions and investments in automation. However, challenges such as working capital constraints and regional market fluctuations pose potential risks. The company's overall sentiment reflects optimism with cautious attention to financial management and market conditions.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Atlas Engineered Products reported a 21% increase in quarterly revenue, driven by increased sales in the commercial and multi-family building sectors.
Significant Increase in Engineered Wood Product Sales
The company achieved a 30% increase in engineered wood product sales compared to the first quarter of last year.
M&A and Automation Investments
AEP's M&A pipeline remains healthy, and the company is investing in automation, including the construction of the first robotic hub in Clinton, which is on schedule and budget.
Quoting Activity and Market Share Growth
Quoting activity increased by 29%, and the company continues to gain market share with expanded sales staff and strategic investments.
Positive Builder Sentiment
Builder sentiment is improving, with reduced uncertainty in the market and increased quoting activity.
Negative Updates
Working Capital Drag
The company experienced a drag on working capital due to higher inventories, which is expected to reverse in subsequent quarters.
Funding Gap for CapEx
AEP faces a funding gap for its capital expenditure plans, including the robotic hub, which may require increased debt usage.
Market Conditions in Ontario and BC
Growing inventory balances in Ontario and BC, particularly in the Greater Toronto Area, may impact homebuilder confidence.
Company Guidance
In the recent earnings call for Atlas Engineered Products, several key metrics and strategic initiatives were highlighted. Revenue for Q1 2025 reached $11 million, marking a 21% increase compared to the same quarter last year, driven by sales growth in the commercial and multi-family building sectors. The company also reported a 56% revenue increase at LCF following its acquisition and a 30% rise in engineered wood product sales year-over-year. Gross margins remained consistent with the previous year, while normalized EBITDA was approximately $616,000, reflecting an improvement due to higher revenues. Quoting activity surged by 29% up to the end of April 2025, indicating a robust rebound in the construction industry. AEP is investing in automation with its first robotic hub in Clinton, expected to contribute materially starting Q2 2026. Additionally, the company is focusing on capital allocation through strategic M&A, organic growth, and share buybacks, seeing deep value in its stock and aiming for accretive purchases.

Atlas Engineered Products Ltd Financial Statement Overview

Summary
Atlas Engineered Products Ltd shows a mixed financial performance. Revenue growth is evident from 2020 to 2023, but a decline in 2024 and negative net income impact profitability. The balance sheet is stable with improved leverage, but cash flow challenges, particularly negative free cash flow in 2024, highlight areas needing improvement.
Income Statement
65
Positive
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
72
Positive
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
58
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue55.83M49.41M61.90M55.00M35.73M
Gross Profit13.55M13.56M19.85M16.15M7.30M
EBITDA7.13M9.52M15.62M12.37M3.75M
Net Income-212.00K3.15M8.83M6.95M228.99K
Balance Sheet
Total Assets80.71M79.44M50.49M35.78M27.09M
Cash, Cash Equivalents and Short-Term Investments13.13M14.75M16.12M8.95M1.82M
Total Debt24.55M38.27M15.25M9.39M9.23M
Total Liabilities32.10M45.01M21.62M15.97M14.16M
Stockholders Equity48.61M34.43M28.87M19.81M12.93M
Cash Flow
Free Cash Flow-1.85M3.86M7.65M8.26M224.80K
Operating Cash Flow2.48M4.48M11.30M9.58M567.64K
Investing Cash Flow-4.32M-24.91M-9.59M-1.21M-735.23K
Financing Cash Flow217.72K19.05M5.46M-1.24M227.17K

Atlas Engineered Products Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price0.82
Price Trends
50DMA
0.87
Negative
100DMA
0.85
Negative
200DMA
0.99
Negative
Market Momentum
MACD
-0.02
Positive
RSI
45.84
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AEP, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 0.83, below the 50-day MA of 0.87, and below the 200-day MA of 0.99, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AEP.

Atlas Engineered Products Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
66
Neutral
£2.67B12.983.30%3.25%2.40%-23.01%
53
Neutral
C$47.82M390.91-10.19%89.54%
52
Neutral
C$50.18M1,914.290.16%49.38%-93.75%
50
Neutral
C$52.64M50.00-0.16%18.02%-101.42%
C$70.00M9.8638.06%
43
Neutral
C$630.39K-7.51%-17.47%43.21%
21
Underperform
C$7.05M6.9922.10%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AEP
Atlas Engineered Products Ltd
0.82
-0.48
-36.92%
TSE:BLM
BluMetric Environmental
1.34
0.84
168.00%
TSE:BQE
BQE Water
54.00
-11.00
-16.92%
TSE:ENW
Enwave Corp
0.42
0.20
90.91%
TSE:MSP
Minaean SP Construction
0.06
0.04
200.00%
TSE:BYT
BYT Holdings Ltd
0.01
-0.08
-88.89%

Atlas Engineered Products Ltd Corporate Events

Business Operations and Strategy
Avanti Helium Secures Key Offtake Agreement, Strengthening Market Position
Positive
Aug 7, 2025

Avanti Helium Corp. has signed a significant multi-year helium offtake agreement with a leading industrial gas supplier, marking a major step toward production at its Sweetgrass Helium Recovery Unit in Montana. This agreement, which secures a substantial revenue stream and positions Avanti as a key player in the North American helium market, highlights the growing demand for helium and the company’s strategic focus on US assets. The company is also in discussions for additional offtake agreements and has granted stock options to employees and consultants.

The most recent analyst rating on (TSE:AEP) stock is a Buy with a C$1.50 price target. To see the full list of analyst forecasts on Atlas Engineered Products Ltd stock, see the TSE:AEP Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Atlas Engineered Products Expands with Acquisition of Penn-Truss MFG Inc.
Positive
Jul 24, 2025

Atlas Engineered Products Ltd. has announced the acquisition of Penn-Truss MFG Inc., a manufacturer of roof and floor trusses located in Saskatchewan, Canada. This strategic acquisition marks AEP’s first facility in Saskatchewan, expanding its national footprint and enhancing its presence in the Canadian Prairies. The acquisition is expected to create synergies with AEP’s existing operations in Manitoba, improving efficiencies and offering growth potential. The purchase price was $3.8 million, with a performance-based component tied to Penn-Truss’s fiscal 2025 results. AEP plans to leverage its operating synergies and purchasing power to enhance Penn-Truss’s operations and explore opportunities for organic growth, particularly in wall panel manufacturing.

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.

M&A TransactionsBusiness Operations and Strategy
Atlas Engineered Products Expands with Acquisition of Truss-Worthy Construction
Positive
Jun 2, 2025

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.

Business Operations and StrategyFinancial Disclosures
Atlas Engineered Products Achieves 21% Revenue Growth in Q1 2025
Positive
May 27, 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.

Business Operations and StrategyFinancial Disclosures
Atlas Engineered Products to Announce Q1 2025 Financial Results
Neutral
May 21, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025