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Atrium Mortgage Invest (TSE:AI)
TSX:AI
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Atrium Mortgage Invest (AI) AI Stock Analysis

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TSE:AI

Atrium Mortgage Invest

(TSX:AI)

Rating:68Neutral
Price Target:
Atrium Mortgage Invest shows strong financial performance with consistent revenue growth and effective cash flow management, though volatility in margins and high debt levels pose risks. The stock's valuation is appealing due to a low P/E ratio and high dividend yield, attracting income-focused investors. However, technical analysis indicates a bearish trend, limiting near-term price appreciation potential.

Atrium Mortgage Invest (AI) vs. iShares MSCI Canada ETF (EWC)

Atrium Mortgage Invest Business Overview & Revenue Model

Company DescriptionAtrium Mortgage Investment Corporation (AI) is a Canadian non-bank lender specializing in providing residential and commercial mortgages. The company operates primarily in urban centers across Canada, focusing on lending to property developers and owners who require customized financing solutions. Atrium's core services include offering short-term and first and second mortgages, catering to the needs of borrowers who may not meet the criteria of traditional banks.
How the Company Makes MoneyAtrium Mortgage Investment Corporation makes money by earning interest on the funds it lends through mortgages. The company's primary revenue stream is the interest income generated from its mortgage portfolio. Atrium focuses on higher-yielding, non-conventional mortgages, allowing it to charge premium interest rates compared to traditional financial institutions. In addition to interest income, Atrium may also generate revenue from origination fees, renewal fees, and other related charges associated with mortgage lending. The company's profitability is influenced by factors such as interest rate environments, property market conditions, and its ability to effectively manage credit risk. Atrium maintains relationships with mortgage brokers and real estate professionals to source lending opportunities, contributing to its earnings.

Atrium Mortgage Invest Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: -1.19%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong financial performance and loan growth on one hand, but challenges such as declining mortgage rates, increased loan defaults, and a weak real estate market on the other. While the company shows resilience and cautious optimism, external economic factors and specific market weaknesses pose significant challenges.
Q2-2025 Updates
Positive Updates
Increased Earnings Per Share
Atrium's earnings per share were $0.28 for Q2, up from $0.26 in the same quarter last year and $0.25 in Q1 of this year.
Strong Loan Portfolio Growth
The mortgage balance increased to $921 million, up from $887 million at the beginning of the year and $908 million in the same quarter last year.
Robust New Loan Advances
Loan advances reached $105 million in Q2, with a total of $224 million for the first six months of 2025, almost $50 million higher than the first half of the previous year.
Stable Balance Sheet
Balance sheet debt remained low at 41.6% of total assets, with a substantial amount of additional capacity available in the credit facility.
Extension and Expansion of Credit Facility
Secured a two-year extension on the credit facility and expanded the syndicate group by two new lenders.
Negative Updates
Decrease in Average Mortgage Rate
The average mortgage rate dropped to 9.3% from 9.56% last quarter, driven by high repayments of higher-yielding loans and new loans at lower rates.
Increase in Stage 2 and Stage 3 Loans
Stage 2 loans increased to $89.9 million, and Stage 3 loans rose to $45.7 million, primarily due to defaults and policy changes in loan classification.
Challenges in Single-Family Mortgage Market
Uptick in single-family arrears and more conservative underwriting policies implemented due to market softness and decreased loan-to-value ratios.
Weakness in New Home Market
New home sales in the GTA down 60% year-over-year in June, with condominiums being the weakest sector.
Global Economic Uncertainty
GDP in Canada declined by 1.5% in Q2, and ongoing tariffs contribute to economic uncertainty affecting the real estate market.
Company Guidance
During Atrium Mortgage Investment Corporation's second-quarter conference call for fiscal year 2025, several key financial metrics were highlighted. The company reported earnings per share of $0.28 for the second quarter, an increase from $0.26 in the same quarter last year and $0.25 in the first quarter of this year. The mortgage balance rose to $921 million, up from $887 million at the start of the year, with a decrease in the average mortgage rate to 9.3% from 9.98% at the beginning of 2025. Atrium's balance sheet remained strong, with debt at 41.6% of total assets and $265 million drawn on a $340 million credit facility. The company noted a shift in policy for classifying loans into Stage 2 and Stage 3, with total loans in these categories increasing to 14.8% of the portfolio. Atrium's focus on commercial and single-family loans led to these sectors comprising over 45% of their portfolio. Additionally, the company secured a two-year extension on its credit facility and arranged a $30 million convertible debenture. Despite a challenging real estate market, Atrium's results for the first half of 2025 were strong, with loan originations nearly 25% higher than the first half of 2024.

Atrium Mortgage Invest Financial Statement Overview

Summary
Atrium Mortgage Invest exhibits a solid financial position with consistent revenue growth and effective cash flow management. While profitability remains strong, 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
62
Positive
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.
Balance Sheet
68
Positive
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.
Cash Flow
75
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue85.93M97.30M64.19M50.13M44.46M44.36M
Gross Profit58.66M88.70M-21.24M40.93M36.84M36.85M
EBITDA61.66M73.83M77.33M66.05M54.32M52.81M
Net Income49.30M47.85M51.48M46.33M41.79M39.19M
Balance Sheet
Total Assets898.96M864.30M877.88M874.78M775.49M755.32M
Cash, Cash Equivalents and Short-Term Investments0.000.000.000.000.000.00
Total Debt141.03M147.44M374.60M378.96M295.54M284.88M
Total Liabilities374.65M347.32M395.67M399.22M305.32M292.43M
Stockholders Equity524.31M516.98M482.21M475.56M470.17M462.89M
Cash Flow
Free Cash Flow7.34M68.13M77.32M58.07M67.89M56.41M
Operating Cash Flow7.34M68.13M77.32M58.07M67.89M56.41M
Investing Cash Flow16.30M-24.86M-4.63M-87.81M-33.02M-16.55M
Financing Cash Flow-21.95M-68.13M-72.68M29.74M-34.86M-39.85M

Atrium Mortgage Invest Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price11.59
Price Trends
50DMA
11.49
Positive
100DMA
11.09
Positive
200DMA
10.76
Positive
Market Momentum
MACD
0.05
Positive
RSI
51.54
Neutral
STOCH
30.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AI, the sentiment is Neutral. The current price of 11.59 is below the 20-day moving average (MA) of 11.65, above the 50-day MA of 11.49, and above the 200-day MA of 10.76, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 51.54 is Neutral, neither overbought nor oversold. The STOCH value of 30.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:AI.

Atrium Mortgage Invest Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
C$780.03M7.469.24%4.00%16.93%17.52%
73
Outperform
C$852.49M11.6611.84%7.44%12.10%-18.24%
70
Neutral
C$633.06M14.666.30%9.02%-10.69%-28.58%
68
Neutral
$17.69B11.8210.30%3.73%9.66%0.42%
68
Neutral
C$552.00M11.059.72%7.91%-11.04%0.44%
67
Neutral
C$443.78M11.689.14%8.45%-0.92%4.84%
$345.00M13.736.79%0.66%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:AI
Atrium Mortgage Invest
11.63
0.85
7.88%
TSE:AGF.B
AGF Management B NV
11.98
4.50
60.16%
TSE:FC
Firm Cap Mortgage Invest
12.14
1.58
14.96%
TSE:MKP
MCAN Mortgage
21.50
5.49
34.29%
TSE:TF
Timbercreek Financial
7.70
0.54
7.54%
VBNK
Versabank
10.90
-1.98
-15.37%

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
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: Apr 06, 2025