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Atrium Mortgage Invest (TSE:AI)
TSX:AI
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Atrium Mortgage Invest
(TSX:AI)
Rating:68Neutral
Price Target:―
Atrium Mortgage Invest (AI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$532.44M
Dividend Yield8.11%
Average Volume (3M)68.51K
Price to Earnings (P/E)10.8
Beta (1Y)0.66
Revenue Growth-1.56%
EPS Growth-9.70%
CountryCA
EmployeesN/A
SectorFinancial
Sector Strength82
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)0.25
Shares Outstanding47,454,105
10 Day Avg. Volume72,976
30 Day Avg. Volume68,513
Financial Highlights & Ratios
PEG Ratio2.04
Price to Book (P/B)1.02
Price to Sales (P/S)0.00
P/FCF Ratio8.98
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.85Price Target Upside14.53% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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:May 13, 2025
(Q1-2025)
| % Change Since: 2.65%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mix of strong financial performance in terms of earnings per share and loan advances, but also highlights challenges such as declining revenues and a decrease in portfolio size. The company maintains a strong balance sheet and has reduced risk in their portfolio, yet faces macroeconomic uncertainties and a decline in the new home market.Q1-2025 Updates
Positive Updates
Earnings Per Share Growth
Atrium achieved Q1 earnings per share of $0.25, surpassing the fixed dividend of $0.2325.
Strong Loan Advances
Loan advances were strong at $119 million in Q1, which is impressive even under normal market conditions.
Reduction in Stage 3 Loans
Stage 3 loans declined to $19.5 million from $29 million, notably due to the repayment of a troubled loan in BC.
High Percentage of First Mortgages
Atrium's percentage of first mortgages remained very high at 96.7%.
Strong Balance Sheet
Balance sheet debt remained low at 39% with $219 million drawn on a $340 million credit facility.
Negative Updates
Decline in Revenue
First quarter revenues were $22 million compared to $25.2 million in the same period last year, due to a decline in interest rates and portfolio turnover.
Increased Loan Provisions
Increased loan provisions by $2.2 million, maintaining a high Stage 1 provision of 109 basis points due to a soft macroeconomic outlook.
Decreased Portfolio Size
Overall portfolio decreased slightly from $887 million last quarter to $875 million in Q1.
New Home Market Decline
In the GTA, new home sales in Q1 decreased by 53% compared to the same period in 2024.
Company Guidance
During Atrium Mortgage Investment Corporation's first quarter results conference call for fiscal year 2025, the company provided detailed guidance on its financial and operational performance. Atrium reported Q1 earnings per share of $0.25, surpassing its fixed dividend of $0.2325. Revenues for the quarter were $22 million, down from $25.2 million in the same period last year, attributed to a decrease in interest rates and portfolio turnover. The mortgage portfolio rate fell to 9.56% from 9.98% due to two Bank of Canada rate cuts totaling 225 basis points. Atrium's gross mortgage portfolio decreased slightly to $875 million from $887 million at the start of the year, reflecting $119 million in advances and $121 million in principal repayments. Stage 3 loans declined to $19.5 million, and the allowance for mortgage losses was maintained at 333 basis points. Atrium emphasized its strategy of sourcing lower risk profile loans to protect shareholder capital, with a strong focus on commercial loans and single-family mortgages now comprising over 41% of the portfolio. The company also highlighted its robust balance sheet with debt at 39% and $219 million drawn on a $340 million credit facility. Additionally, Atrium announced a preliminary approval for a two-year extension of this credit line, with renewal terms unchanged. Despite a challenging economic environment, Atrium's Q1 results were deemed strong, demonstrating disciplined underwriting and a focus on maintaining a resilient loan portfolio.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 | ||||
| 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 |
| 73.83M | 77.33M | 66.05M | 41.79M | 39.19M | EBITDA |
| 73.83M | 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 |
| -24.86M | -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
Positive
11.22
Price Trends
10.75
Positive
10.63
Positive
10.68
Positive
Market Momentum
0.13
Negative
69.97
Neutral
59.63
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 11.22 is above the 20-day moving average (MA) of 11.04, above the 50-day MA of 10.75, and above the 200-day MA of 10.68, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 69.97 is Neutral, neither overbought nor oversold. The STOCH value of 59.63 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | C$783.30M | 7.92 | 8.68% | 3.92% | 20.65% | -2.36% | |
75 Outperform | C$614.03M | 13.23 | 6.74% | 9.30% | -8.68% | -25.42% | |
74 Outperform | C$761.11M | 10.50 | 11.99% | 8.13% | 19.71% | -15.59% | |
68 Neutral | C$532.44M | 10.75 | 9.47% | 8.11% | -1.56% | -9.70% | |
67 Neutral | C$455.16M | 12.16 | 8.89% | 7.55% | -4.56% | 0.77% | |
64 Neutral | $12.87B | 9.81 | 7.76% | 16985.65% | 12.28% | -7.83% | |
| $341.56M | 13.05 | 6.79% | 0.69% | ― | ― |
* Financial Sector Average
Performance Comparison
TSE:AI
Atrium Mortgage Invest
11.22
1.05
10.32%
TSE:AGF.B
AGF Management B NV
12.07
4.07
50.88%
TSE:FC
Firm Cap Mortgage Invest
12.33
2.38
23.92%
TSE:MKP
MCAN Mortgage
19.64
4.55
30.15%
TSE:TF
Timbercreek Financial
7.42
0.88
13.46%
VBNK
Versabank
11.15
0.62
5.89%
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.