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Atrium Mortgage Invest (TSE:AI)
TSX:AI
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Atrium Mortgage Invest
(TSX:AI)
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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)
Market Cap
C$526.75M
Dividend Yield8.24%
Average Volume (3M)97.34K
Price to Earnings (P/E)10.4
Beta (1Y)0.57
Revenue Growth-13.69%
EPS Growth-1.60%
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.25
Shares Outstanding47,626,945
10 Day Avg. Volume100,490
30 Day Avg. Volume97,343
Financial Highlights & Ratios
PEG Ratio-1.01
Price to Book (P/B)0.95
Price to Sales (P/S)5.04
P/FCF Ratio7.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.00Price Target Upside15.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Atrium Mortgage Invest Business Overview & Revenue Model
Company DescriptionAtrium Mortgage Investment Corporation, a non-bank lender, provides financing solutions to the real estate communities in Ontario, Alberta, and British Columbia. It offers various types of mortgage loans for residential, multi-residential, and commercial real properties, which includes first and second mortgages; infill construction and financing; land and land assembly financing for stacked and traditional townhomes, single detached homes, and low-rise and midrise condominiums; and bridge and term financing. The company was incorporated in 2001 and is headquartered in Toronto, Canada.
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:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 12, 2026
Earnings Call Sentiment Neutral
Atrium Mortgage Investment Corporation demonstrated resilience with increased net income, growth in its mortgage portfolio, and a successful increase in its credit facility. However, challenges such as decreased average interest rates, an increase in Stage 2 and Stage 3 loans, and provisions for loan losses coupled with a weak housing market present areas of concern.Q3-2025 Updates
Positive Updates
Increased Net Income
Atrium generated net income of $11.9 million in the third quarter, an increase of 2.5% over the prior year.
Earnings Per Share Exceeds Dividend
Basic and fully diluted earnings per share was $0.25 for the quarter, exceeding the fixed dividend of $0.2325 per share.
Portfolio Growth
The mortgage portfolio increased to $917.3 million from $886.7 million at December 31, 2024.
Increase in Credit Facility
Atrium exercised its right to increase its credit facility by $40 million to $380 million.
Strong Loan Production
Loan advances were $63 million in the quarter and $287 million for the first 3 quarters of 2025, more than 23% ahead of last year's loan production.
Stable Loan-to-Value Ratio
The average loan-to-value ratio decreased slightly to 60.8%, within the desired range of 65%.
Negative Updates
Decrease in Average Interest Rate
The average interest rate on the mortgage portfolio decreased to 9.2% from 9.98% due to loan repayments and rate cuts by the Bank of Canada.
Increase in Stage 2 and Stage 3 Loans
Stage 2 loans increased to $96.8 million, and Stage 3 loans increased to $56.3 million at the end of the third quarter.
Loan Loss Provision
A loan loss provision of $1.63 million was expensed in Q3, after having no loan loss expense in Q2.
Weak Housing Market
The housing market in Ontario and BC is weak, with declines in new home sales and prices.
Company Guidance
During Atrium Mortgage Investment Corporation's third quarter results conference call for fiscal year 2025, several key metrics were highlighted. Atrium reported a net income of $11.9 million, a 2.5% increase compared to the previous year, with basic and fully diluted earnings per share at $0.25. The mortgage portfolio stood at $917.3 million, up from $886.7 million at the end of 2024, and had an average interest rate of 9.2%. The portfolio's average loan-to-value ratio decreased to 60.8%, while 96% of the mortgages were first mortgages. The allowance for mortgage losses was $29.5 million, representing 321 basis points of the mortgage portfolio. Stage 2 loans increased to $96.8 million, and Stage 3 loans rose to $56.3 million, reflecting strategic adjustments in the portfolio. The company maintained a low balance sheet debt of 41% and increased its credit facility to $380 million. Atrium's strategic focus on commercial and single-family mortgages was emphasized, with these sectors comprising 46.3% of the total portfolio. Despite a challenging real estate market, Atrium's earnings per share for the first nine months of 2025 were $0.78, closely mirroring last year's performance and exceeding the fixed dividend rate.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
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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 81.61M | 88.70M | 90.11M | 69.84M | 56.99M | 57.98M |
| Gross Profit | 51.09M | 49.15M | 52.78M | 49.26M | 43.17M | 40.60M |
| EBITDA | 49.30M | 47.85M | 51.48M | 46.33M | 41.79M | 39.19M |
| Net Income | 49.30M | 47.85M | 51.48M | 46.33M | 41.79M | 39.19M |
Balance Sheet | ||||||
| Total Assets | 898.96M | 864.30M | 877.88M | 874.78M | 775.49M | 755.32M |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Debt | 141.03M | 147.44M | 169.60M | 168.96M | 174.54M | 284.88M |
| Total Liabilities | 374.65M | 347.32M | 395.67M | 399.22M | 305.32M | 292.43M |
| Stockholders Equity | 524.31M | 516.98M | 482.21M | 475.56M | 470.17M | 462.89M |
Cash Flow | ||||||
| Free Cash Flow | 7.34M | 68.13M | 34.87M | 58.07M | 67.89M | 56.41M |
| Operating Cash Flow | 7.34M | 68.13M | 34.87M | 58.07M | 67.89M | 56.41M |
| Investing Cash Flow | 14.60M | 0.00 | 13.28M | -87.81M | -33.02M | -16.55M |
| Financing Cash Flow | -21.95M | -68.13M | -48.15M | 29.74M | -34.86M | -39.85M |
Atrium Mortgage Invest Technical Analysis
Positive
11.26
Price Trends
11.38
Negative
11.36
Negative
10.88
Positive
Market Momentum
-0.07
Negative
50.85
Neutral
41.03
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AI, the sentiment is Positive. The current price of 11.26 is above the 20-day moving average (MA) of 11.21, below the 50-day MA of 11.38, and above the 200-day MA of 10.88, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 50.85 is Neutral, neither overbought nor oversold. The STOCH value of 41.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AI.
Atrium Mortgage Invest Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | C$951.00M | 8.46 | 9.85% | 3.55% | 11.23% | 30.44% | |
73 Outperform | C$850.65M | 11.48 | 10.50% | 7.55% | 7.74% | -31.96% | |
68 Neutral | C$526.75M | 10.44 | 9.72% | 8.24% | -13.69% | -1.60% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | C$430.92M | 11.34 | 8.90% | 8.73% | -6.64% | 4.43% | |
63 Neutral | $528.51M | 17.32 | 6.07% | 0.61% | 4.19% | -46.14% | |
60 Neutral | C$553.62M | 14.60 | 5.52% | 10.31% | -9.00% | -35.22% |
* Financial Sector Average
TSE:AI
Atrium Mortgage Invest
11.26
0.86
8.27%
TSE:AGF.B
AGF Management B NV
13.82
3.04
28.20%
TSE:FC
Firm Cap Mortgage Invest
11.70
0.94
8.74%
TSE:MKP
MCAN Mortgage
21.46
3.51
19.55%
TSE:TF
Timbercreek Financial
6.69
-0.34
-4.84%
TSE:VBNK
Versabank
16.43
-7.82
-32.24%
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.