Atrium Mortgage Investment Corp. (AI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

First National Financial Corp. (Ontario)

MCAN Mortgage Corp.

Atrium Mortgage Investment Corp.

Firm Capital Mortgage Investment Corp.

Timbercreek Financial Corp.

ECN Capital Corp.

Element Fleet Management Corp.

Real Matters, Inc.

Altus Group Ltd.

Chesswood Group Ltd.

goeasy Ltd.

Why is Atrium Mortgage Investment Corp. ?

Strong Long Term Fundamental Strength with a 5.05% CAGR growth in Net Sales

Poor long term growth as Operating profit has grown by an annual rate of 5.19%

Negative results in Mar 26

OPERATING CASH FLOW(Y) Lowest at CAD 50.87 MM
ROCE(HY) Lowest at 9.38%
DEBTORS TURNOVER RATIO(HY) Lowest at 0.1 times

With ROE of 9.31%, it has a very attractive valuation with a 1.08 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.03%, its profits have risen by 3.1% ; the PEG ratio of the company is 8

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -1.03% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Atrium Mortgage Investment Corp. should be less than 10%
Overall Portfolio exposure to Finance should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Finance)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Atrium Mortgage Investment Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Atrium Mortgage Investment Corp.

-100.0%

0.26

11.10%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.05%

EBIT Growth (5y)

5.19%

EBIT to Interest (avg)

3.65

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

0.18

Tax Ratio

Dividend Payout Ratio

90.16%

Pledged Shares

Institutional Holding

ROCE (avg)

15.27%

ROE (avg)

9.49%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.08

EV to EBIT

7.97

EV to EBITDA

7.97

EV to Capital Employed

1.08

EV to Sales

6.89

PEG Ratio

8.04

Dividend Yield

ROCE (Latest)

13.58%

ROE (Latest)

9.31%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 395.32

DIVIDEND PAYOUT RATIO(Y)

Highest at 95.56%

RAW MATERIAL COST(Y)

Fallen by 0.7% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 55.94 %

-10What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 58.38 MM

ROCE(HY)

Lowest at 9.06%

DEBTORS TURNOVER RATIO(HY)

Lowest at 0.09 times

NET SALES(Q)

Lowest at CAD 18.67 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 11.73 MM

NET PROFIT(Q)

Lowest at CAD 11.73 MM

Here's what is working for Atrium Mortgage Investment Corp.

Interest Coverage Ratio

Highest at 395.32

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debt-Equity Ratio

Lowest at 55.94 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio

Highest at 95.56%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by 0.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Atrium Mortgage Investment Corp.

Net Sales

Lowest at CAD 18.67 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (CAD MM)

Debtors Turnover Ratio

Lowest at 0.09 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Cash Flow

Lowest at CAD 58.38 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Pre-Tax Profit

Lowest at CAD 11.73 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 11.73 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)