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Atrium Mortgage Invest (TSE:AI)
TSX:AI
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Atrium Mortgage Invest
(TSX:AI)
68Neutral
Atrium Mortgage Invest (AI) vs. S&P 500 (SPY)
Market Cap
C$494.45M
Dividend Yield8.72%
Average Volume (3M)91.80K
Price to Earnings (P/E)9.8
Beta (1Y)0.66
Revenue Growth-1.56%
EPS Growth-9.70%
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength80
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)1.06
Shares Outstanding47,406,650
10 Day Avg. Volume70,796
30 Day Avg. Volume91,801
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)7.64
Price to Cash Flow (P/CF)6.90
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.78Price Target Upside22.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Atrium Mortgage Invest Business Overview & Revenue Model
Company DescriptionAtrium Mortgage Investment Corporation is a Canadian non-bank lender that provides financing solutions for residential and commercial real estate sectors. It primarily focuses on offering short-term and mid-term mortgage loans to developers, builders, and commercial property owners. Atrium Mortgage Invest aims to fill the gap between traditional bank lending and alternative financing options, catering to clients who may not meet the stringent requirements of conventional banking institutions.
How the Company Makes MoneyAtrium Mortgage Investment Corporation makes money by providing mortgage loans to clients and earning interest income from these loans. The company primarily lends to borrowers seeking non-traditional financing solutions, such as real estate developers and property investors who require flexibility or do not qualify for bank loans. Atrium typically charges higher interest rates than traditional banks due to the greater risk associated with its lending activities. The company also capitalizes on its expertise in real estate markets and underwriting to manage risk and ensure profitable returns. Revenue is largely generated from the interest payments received on its loan portfolio, which includes first and second mortgages on residential and commercial properties. Additionally, Atrium may benefit from any fees associated with loan origination and servicing, contributing to its overall earnings.
Atrium Mortgage Invest Financial Statement Overview
Summary
Atrium Mortgage Invest exhibits a solid financial position with consistent revenue growth and strong free cash flow generation. While the company maintains a healthy equity ratio, volatility in gross profit margins and high debt levels present potential risks. Overall, the company's financial health is sound, with opportunities for further improvement in cost management and leverage.Income Statement
The company has shown consistent revenue growth over the years, with a notable increase from $44.4M in 2020 to $62.7M in 2024. However, the gross profit margin recently turned negative in 2023 and improved in 2024, indicating volatility in cost management. The net profit margin remains strong, showcasing decent profitability despite fluctuations in EBIT and EBITDA.62
Positive
Balance Sheet
Atrium Mortgage Invest maintains a healthy equity ratio, with stockholders' equity forming a significant portion of total assets. The debt-to-equity ratio has shown improvement, reflecting better leverage management. However, the relatively high total debt level poses a risk if not managed carefully. Return on equity remains robust, indicating efficient use of equity capital.68
Positive
Cash Flow
The company has demonstrated strong free cash flow generation, with consistent growth over the years. Operating cash flow consistently exceeds net income, highlighting effective cash generation from operations. The free cash flow to net income ratio is favorable, reinforcing solid cash management capabilities.75
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 62.72M | 64.19M | 50.13M | 44.46M | 44.36M | Gross Profit |
| 62.72M | -21.24M | 40.93M | 36.84M | 36.85M | EBIT |
| -147.67M | 77.33M | 66.05M | 41.79M | 39.19M | EBITDA |
| 0.00 | 0.00 | 66.05M | 54.32M | 52.81M | Net Income Common Stockholders |
| 47.85M | 51.48M | 46.33M | 41.79M | 39.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Total Assets |
| 864.30M | 877.88M | 874.78M | 775.49M | 755.32M | Total Debt |
| 147.44M | 169.60M | 378.96M | 295.54M | 284.88M | Net Debt |
| 147.44M | 169.60M | 378.96M | 295.54M | 284.88M | Total Liabilities |
| 347.32M | 395.67M | 399.22M | 305.32M | 292.43M | Stockholders Equity |
| 516.98M | 482.21M | 475.56M | 470.17M | 462.89M |
| Cash Flow | Free Cash Flow | |||
| 68.13M | 77.32M | 58.07M | 67.89M | 56.41M | Operating Cash Flow |
| 68.13M | 77.32M | 58.07M | 67.89M | 56.41M | Investing Cash Flow |
| 0.00 | -4.63M | -87.81M | -33.02M | -16.55M | Financing Cash Flow |
| -68.13M | -72.68M | 29.74M | -34.86M | -39.85M |
Atrium Mortgage Invest Technical Analysis
Negative
10.43
Price Trends
10.65
Negative
10.72
Negative
10.70
Negative
Market Momentum
<0.01
Positive
44.66
Neutral
-4.61
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AI, the sentiment is Negative. The current price of 10.43 is below the 20-day moving average (MA) of 10.63, below the 50-day MA of 10.65, and below the 200-day MA of 10.70, indicating a bearish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 44.66 is Neutral, neither overbought nor oversold. The STOCH value of -4.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AI.
Atrium Mortgage Invest Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.23B | 4.75 | 6.46% | 0.61% | -7.92% | 256.12% | |
68 Neutral | C$494.45M | 9.79 | 9.58% | 8.72% | -1.56% | -9.70% | |
63 Neutral | $12.86B | 9.19 | 9.16% | 4.78% | 16.31% | -8.97% | |
56 Neutral | C$2.23B | 11.18 | 27.56% | 6.64% | 16.99% | -19.87% | |
53 Neutral | $1.13B | ― | -0.24% | 7.58% | -3.68% | -111.41% |
* Financial Sector Average
Performance Comparison
TSE:AI
Atrium Mortgage Invest
10.43
-0.17
-1.60%
TSE:MRC
Morguard (OTC)
115.02
2.21
1.96%
TSE:LB
Laurentian Bank
25.61
0.18
0.70%
TSE:FN
First National Financial
37.20
2.09
5.95%
Atrium Mortgage Invest Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -0.57% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance with a record-setting mortgage portfolio, increased dividends, and successful equity offerings. However, it also pointed out challenges like decreased mortgage rates, slow real estate market activity, and economic challenges in Canada, including changes in immigration policy that could impact future growth.Highlights
Record Mortgage Portfolio
Atrium's mortgage portfolio reached a record $926.3 million, up from $907.8 million in Q2 and $893.6 million at the beginning of the year.
Dividend Increase
A 3.3% increase in monthly dividends was reported, beginning next month, to an annualized rate of $0.93 per common share.
Successful Equity Offering
Atrium completed an oversubscribed bought deal share offering with total gross proceeds of $28.8 million.
Strong Earnings Per Share
Atrium generated basic earnings per share in Q3 of $0.26, with year-to-date earnings per share of $0.79, the second best in their 12-year history.
Decrease in Loan Loss Provisions
Loan loss provisions decreased from $4.4 million last quarter to $3.5 million in Q3, showing improvement in credit risk.
Lowlights
Decrease in Mortgage Rates
Average mortgage rate dropped from 10.93% last quarter to 10.52% in Q3, impacted by rate decreases by the Bank of Canada.
Slow Real Estate Market Activity
Real estate market activity remained slow due to cautious capital investment and consumer behavior amidst uncertain market conditions.
Economic Challenges in Canada
Canada's GDP growth was less than 1.5% in Q3, below the Bank of Canada's forecast of 2.8%, with unemployment reaching a 7-year high of 6.6% in August.
Impact of Immigration Policy Changes
The Federal government's change in immigration policy could negatively affect economic growth and the real estate sector.
Company Guidance
During the Q3 2024 earnings call for Atrium Mortgage Investment Corporation, the company reported a solid financial performance with an earnings per share (EPS) of $0.26 for the quarter and $0.79 year-to-date, marking the second-best nine-month performance in its history. The mortgage portfolio reached a record $926.3 million, up from $907.8 million in Q2. Atrium announced a 3.3% increase in its annual dividend rate to $0.93 per share, reflecting its strong results and improving credit risk profile. The average mortgage rate decreased from 10.93% to 10.52%, influenced by two 25-basis-point rate cuts by the Bank of Canada. Atrium maintained a low leverage balance sheet, with shareholder capital representing 54.6% of total funding sources. The company also highlighted significant progress in resolving loans in default, with the percentage of Stage 2 and 3 loans decreasing from 17.8% at the beginning of the year to 14.0% in Q3. Additionally, Atrium completed an oversubscribed share offering, raising $28.8 million to enhance funding capacity and liquidity.Atrium Mortgage Invest Corporate Events
Dividends
Atrium Mortgage Investment Corporation Declares April 2025 Dividend
Positive
Apr 3, 2025
Atrium Mortgage Investment Corporation announced a dividend of $0.0775 per common share for April 2025, payable on May 13, 2025. The company offers a dividend reinvestment plan (DRIP) that allows shareholders to reinvest dividends in new shares at a 2% discount, promoting compound growth. This announcement underscores Atrium’s commitment to providing stable returns to shareholders and enhancing investment growth opportunities.
Executive/Board ChangesDividends
Atrium Mortgage Announces CFO Change and March Dividend
Neutral
Mar 17, 2025
Atrium Mortgage Investment Corporation announced a leadership change in its finance department, with John Ahmad stepping down as CFO and Razvan Vulcu assuming the interim role. The company also declared a March 2025 dividend of $0.0775 per share, maintaining its commitment to providing stable returns to shareholders. The announcement highlights Atrium’s focus on ensuring smooth operational transitions and its dedication to shareholder value through consistent dividend payouts and a dividend reinvestment plan.
Dividends
Atrium Mortgage Announces February 2025 Dividend and Reinvestment Opportunities
Positive
Feb 5, 2025
Atrium Mortgage Investment Corporation has announced a dividend of $0.0775 per common share for February 2025, payable on March 12, 2025. The company also offers a dividend reinvestment plan allowing shareholders to reinvest dividends in new shares at a 2% discount. This announcement underscores Atrium’s commitment to providing stable returns and opportunities for compound growth to its stakeholders, while maintaining its position as a leading non-bank mortgage provider in Canada.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.