Atrium Mortgage Invest (AI) AI Stock Analysis

• Market Cap: C$547.09M
• Dividend Yield: 8.09%
• Average Volume (3M): 103.67K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.60
• Revenue Growth: -1.56%
• EPS Growth: -9.70%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Mortgages
• EPS (TTM): 0.25
• Shares Outstanding: 47,572,998
• 10 Day Avg. Volume: 128,352
• 30 Day Avg. Volume: 103,674
• PEG Ratio: -6.39
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.68
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$12.85
• Price Target Upside: 11.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 68 Neutral
• 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 Business Overview & Revenue Model

Company Description

Atrium 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 Money

Atrium 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 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.

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.

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	88.70M	64.19M	50.13M	44.46M	44.36M
Gross Profit	49.15M	-21.24M	40.93M	36.84M	36.85M
EBITDA	73.83M	77.33M	66.05M	54.32M	52.81M
Net Income	47.85M	51.48M	46.33M	41.79M	39.19M
Balance Sheet
Total Assets	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
Total Debt	147.44M	374.60M	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

• Technical Analysis Sentiment: Positive
• Last Price: 11.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 11.5 is above the 20-day moving average (MA) of 11.34, above the 50-day MA of 11.12, and above the 200-day MA of 10.67, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 81.53 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	81 Outperform	C$825.51M	7.86	9.24%	3.94%	16.93%	17.52%
MKP	74 Outperform	C$766.61M	10.55	11.99%	8.32%	19.71%	-15.59%
VBNK	73 Outperform	C$515.42M	14.29	6.79%	0.63%	7.83%	-37.41%
TF	73 Outperform	C$646.30M	13.92	6.74%	8.83%	-8.68%	-25.42%
AI	68 Neutral	C$547.09M	11.02	9.47%	8.09%	-1.56%	-9.70%
Sector *	67 Neutral	$16.86B	11.82	9.77%	3.72%	12.02%	-8.27%
FC	67 Neutral	C$454.06M	12.13	8.89%	7.57%	-4.56%	0.77%

Atrium Mortgage Invest Corporate Events

Atrium Mortgage Investment Corporation Declares April 2025 Dividend

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.

Atrium Mortgage Announces CFO Change and March Dividend

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.

Atrium Mortgage Announces February 2025 Dividend and Reinvestment Opportunities

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.