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Atrium Mortgage Invest (TSE:AI)
TSX:AI
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Atrium Mortgage Invest
(TSX:AI)
77Outperform
Atrium Mortgage Invest (AI) vs. S&P 500 (SPY)
Market Cap
C$497.16M
Dividend Yield8.43%
Average Volume (3M)97.04K
Price to Earnings (P/E)10.0
Beta (1Y)0.65
Revenue Growth4.56%
EPS Growth-12.33%
CountryCA
Employees1
SectorFinancial
Sector Strength77
IndustryBanking
Share Statistics
EPS (TTM)1.06
Shares Outstanding47,258,816
10 Day Avg. Volume131,261
30 Day Avg. Volume97,038
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.65
Price to Cash Flow (P/CF)7.00
P/FCF Ratio5.00
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 Upside19.44% 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 shows strong financial health with high profitability, stable balance sheet metrics, and efficient cash flow management. The company is well-positioned in the banking industry, with low leverage and solid equity, supporting sustainable growth and risk management.Income Statement
Atrium Mortgage Invest has demonstrated strong profitability with a high net profit margin of 64% in TTM (Trailing-Twelve-Months) and consistent revenue growth over the years. The gross profit margin is exceptionally high due to revenue adjustments. EBIT and EBITDA margins are healthy, indicating efficient operational management.85
Very Positive
Balance Sheet
The company maintains a solid balance sheet with a debt-to-equity ratio of 0.32, indicating moderate leverage. The equity ratio is stable at approximately 55%, providing a strong buffer against liabilities. Return on Equity (ROE) is strong at 9.5% for TTM, reflecting effective utilization of equity.75
Positive
Cash Flow
Atrium Mortgage Invest exhibits robust cash flow management with a consistent free cash flow and a free cash flow to net income ratio of 1.59 in TTM, indicating strong cash generation relative to profits. Operating cash flow to net income ratio of 1.59 suggests efficient cash flow operations.80
Positive
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 73.49M | 64.19M | 50.13M | 44.46M | 44.36M | 41.95M | Gross Profit |
| 75.99M | -21.24M | 40.93M | 36.84M | 36.85M | 34.18M | EBIT |
| 11.47M | 77.33M | 66.05M | 41.79M | 39.19M | 38.57M | EBITDA |
| 31.95M | 0.00 | 66.05M | 54.32M | 52.81M | 56.60M | Net Income Common Stockholders |
| 47.03M | 51.48M | 46.33M | 41.79M | 39.19M | 38.57M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Total Assets |
| 699.75M | 877.88M | 874.78M | 775.49M | 755.32M | 743.63M | Total Debt |
| 305.13M | 169.60M | 378.96M | 295.54M | 284.88M | 277.36M | Net Debt |
| 305.13M | 169.60M | 378.96M | 295.54M | 284.88M | 277.36M | Total Liabilities |
| 312.44M | 395.67M | 399.22M | 305.32M | 292.43M | 288.11M | Stockholders Equity |
| 387.31M | 482.21M | 475.56M | 470.17M | 462.89M | 455.52M |
| Cash Flow | Free Cash Flow | ||||
| 74.89M | 77.32M | 58.07M | 67.89M | 56.41M | 48.02M | Operating Cash Flow |
| 74.89M | 77.32M | 58.07M | 67.89M | 56.41M | 48.02M | Investing Cash Flow |
| -43.47M | -4.63M | -87.81M | -33.02M | -16.55M | -33.67M | Financing Cash Flow |
| -34.77M | -72.68M | 29.74M | -34.86M | -39.85M | -14.34M |
Atrium Mortgage Invest Technical Analysis
Negative
10.70
Price Trends
10.72
Negative
10.82
Negative
10.73
Negative
Market Momentum
-0.03
Positive
42.98
Neutral
56.72
Neutral
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 10.7 is above the 20-day moving average (MA) of 10.68, below the 50-day MA of 10.72, and below the 200-day MA of 10.73, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.98 is Neutral, neither overbought nor oversold. The STOCH value of 56.72 is Neutral, 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 (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$497.16M | 10.05 | 9.58% | 8.43% | 4.56% | -12.33% | |
76 Outperform | C$1.30B | 4.96 | 6.46% | 0.57% | -7.92% | 256.12% | |
64 Neutral | $13.80B | 10.64 | 9.23% | 4.22% | 17.66% | -7.66% | |
64 Neutral | $5.69B | 21.19 | 6.80% | 2.56% | 11.81% | -17.87% | |
61 Neutral | C$2.35B | 12.01 | 27.56% | 6.15% | 16.99% | -19.87% | |
53 Neutral | $1.16B | ― | -0.24% | 7.40% | -3.68% | -111.41% |
* Financial Sector Average
Performance Comparison
TSE:AI
Atrium Mortgage Invest
10.52
-0.07
-0.66%
TSE:CWB
Canadian Western Bank
56.63
29.20
106.48%
TSE:MRC
Morguard (OTC)
121.37
6.62
5.77%
TSE:LB
Laurentian Bank
26.30
-0.40
-1.51%
TSE:FN
First National Financial
39.25
5.27
15.51%
Atrium Mortgage Invest Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 1.23% | 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
Atrium Mortgage Investment Corporation Announces Increased Dividend for 2025
Jan 6, 2025
Atrium Mortgage Investment Corporation has announced its monthly dividend policy for 2025, setting it at an annual rate of $0.93 per share, which is a 3.3% increase from the previous year. Additionally, Atrium will pay a special dividend to distribute surplus taxable income from 2024 and offers a dividend reinvestment plan to shareholders, promoting growth through reinvestment at a discounted rate.
Atrium Mortgage Boosts Dividend and Reduces Risk
Dec 11, 2024
Atrium Mortgage Investment Corporation has announced a 3.3% increase in its December 2024 dividend, alongside a special dividend to be determined in early 2025. The company has significantly reduced its higher risk loans, dropping them to 5.6% from 14% of its mortgage portfolio, showcasing positive progress amidst challenging real estate markets.
Atrium Mortgage Reports Strong Earnings and Dividend Increase
Nov 13, 2024
Atrium Mortgage Investment Corporation reported a strong third-quarter performance with an increase in earnings per share to $0.26 and announced a 3.3% rise in its annual dividend rate. The company highlighted its robust mortgage portfolio and successful common share offering, raising $28.8 million to support business growth and liquidity.
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.