TSX:AI

Stock Analysis Report

Atrium Mortgage Investment

Executive Summary

Atrium Mortgage Investment Corporation provides financing solutions to the real estate communities in Ontario, Alberta, and British Columbia in Canada.


Snowflake Analysis

Proven track record and fair value.

Share Price & News

How has Atrium Mortgage Investment's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

16.1%

AI

9.7%

CA Mortgage

4.5%

CA Market


1 Year Return

-33.3%

AI

-24.1%

CA Mortgage

-24.5%

CA Market

Return vs Industry: AI underperformed the Canadian Mortgage industry which returned -24.1% over the past year.

Return vs Market: AI underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

AIIndustryMarket
7 Day16.1%9.7%4.5%
30 Day-36.2%-39.2%-20.1%
90 Day-39.4%-45.3%-24.9%
1 Year-28.7%-33.3%-15.3%-24.1%-22.0%-24.5%
3 Year-11.4%-28.6%-11.7%-25.8%-14.2%-22.2%
5 Year0.2%-30.1%-11.9%-29.3%-1.9%-16.5%

Price Volatility Vs. Market

How volatile is Atrium Mortgage Investment's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Atrium Mortgage Investment undervalued compared to its fair value and its price relative to the market?

32.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AI (CA$8.78) is trading below our estimate of fair value (CA$12.98)

Significantly Below Fair Value: AI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AI is poor value based on its PE Ratio (9x) compared to the Mortgage industry average (6.7x).

PE vs Market: AI is good value based on its PE Ratio (9x) compared to the Canadian market (10.3x).


Price to Earnings Growth Ratio

PEG Ratio: AI is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: AI is overvalued based on its PB Ratio (0.8x) compared to the CA Mortgage industry average (0.7x).


Next Steps

Future Growth

How is Atrium Mortgage Investment forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

3.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AI's forecast earnings growth (3.9% per year) is above the savings rate (1.4%).

Earnings vs Market: AI's earnings (3.9% per year) are forecast to grow slower than the Canadian market (7.4% per year).

High Growth Earnings: AI's earnings are forecast to grow, but not significantly.

Revenue vs Market: AI's revenue (16.2% per year) is forecast to grow faster than the Canadian market (3.8% per year).

High Growth Revenue: AI's revenue (16.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AI's Return on Equity is forecast to be low in 3 years time (8.7%).


Next Steps

Past Performance

How has Atrium Mortgage Investment performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AI has high quality earnings.

Growing Profit Margin: AI's current net profit margins (80.8%) are lower than last year (81.5%).


Past Earnings Growth Analysis

Earnings Trend: AI's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: AI's earnings growth over the past year (14.2%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: AI earnings growth over the past year (14.2%) exceeded the Mortgage industry 12.7%.


Return on Equity

High ROE: AI's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Atrium Mortgage Investment's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: AI has a low level of unsold assets or inventory.

Debt Coverage by Assets: AI's debt is covered by short term assets (assets are 2.6x debt).


Financial Institutions Analysis

Asset Level: AI's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AI has a sufficient allowance for bad loans.

Low Risk Liabilities: AI reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AI has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AI has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AI has an appropriate level of bad loans.


Next Steps

Dividend

What is Atrium Mortgage Investment's current dividend yield, its reliability and sustainability?

10.93%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AI's dividend (10.93%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).

High Dividend: AI's dividend (10.93%) is in the top 25% of dividend payers in the Canadian market (8.69%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, AI has been paying a dividend for less than 10 years.

Growing Dividend: AI's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (92.4%), AI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AI's dividends in 3 years are not forecast to be well covered by earnings (95.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

Rob Goodall (61yo)

25.58s

Tenure

CA$945,055

Compensation

Mr. Robert G. Goodall, also known as Rob, MBA, is the founder of Atrium Mortgage Investment Corporation. Mr. Goodall has been the Chief Executive Officer of Atrium Mortgage Investment Corporation since Au ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD668.38K) is about average for companies of similar size in the Canadian market ($USD771.33K).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Goodall
Founder25.58yrsCA$945.06k1.61% CA$6.0m
Jennifer Scoffield
CFO & Secretary2.17yrsCA$240.03k0.036% CA$135.5k
Phil Fiuza
Managing Director of Ontario - Residentialno datano datano data
Bram Rothman
Managing Director of Ontariono datano datano data
Marianne Dobslaw
Managing Director of British Columbia5.83yrsno datano data
Richard Munroe
Managing Director of Ontario3.42yrsno datano data
Adam McDonald
Treasurer & Controller3.25yrsno datano data

3.4yrs

Average Tenure

Experienced Management: AI's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Goodall
Founder25.58yrsCA$945.06k1.61% CA$6.0m
Peter Cohos
Independent Director8yrsCA$53.15k0.43% CA$1.6m
Maurice Kagan
Independent Director1.83yrsCA$22.91k0.030% CA$109.7k
Nancy H. Lockhart
Independent Director6.67yrsCA$52.44k0.82% CA$3.0m
Mark Silver
Independent Chairman of the Board6.83yrsCA$62.22k0.43% CA$1.6m
Robert DeGasperis
Independent Director8yrsCA$45.76k0.28% CA$1.0m
Andrew Grant
Independent Director5.42yrsCA$46.20k0.089% CA$331.7k

6.8yrs

Average Tenure

61yo

Average Age

Experienced Board: AI's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.3%.


Top Shareholders

Company Information

Atrium Mortgage Investment Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Atrium Mortgage Investment Corporation
  • Ticker: AI
  • Exchange: TSX
  • Founded: 2001
  • Industry: Thrifts and Mortgage Finance
  • Sector: Banks
  • Market Cap: CA$371.356m
  • Shares outstanding: 42.30m
  • Website: https://www.atriummic.com

Number of Employees


Location

  • Atrium Mortgage Investment Corporation
  • 20 Adelaide Street East
  • Suite 900
  • Toronto
  • Ontario
  • M5C 2T6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AITSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 2012
AMIV.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 2012

Biography

Atrium Mortgage Investment Corporation provides financing solutions to the real estate communities in Ontario, Alberta, and British Columbia in Canada. It offers various types of mortgage loans for residential, multi-residential, and commercial real properties, including 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 founded in 2001 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:36
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.