Latest news with #AtlasEngineeredProducts
Yahoo
28-05-2025
- Business
- Yahoo
Atlas Engineered Products Ltd (APEUF) Q1 2025 Earnings Call Highlights: Strong Revenue Growth ...
Revenue: $11 million for Q1 2025, a 21% increase over the same quarter last year. LCF Revenue Increase: 56% increase in revenues at LCF period-over-period. Engineered Wood Products Sales: 30% increase for Q1 2025 over Q1 2024. Gross Margin: Remained consistent compared to Q1 2024. Normalized EBITDA: Approximately $616,000 for Q1 2025, an increase over the prior year. Quoting Activity: Up by 29% as of the end of April 2025 compared to the previous year. Warning! GuruFocus has detected 3 Warning Signs with APEUF. Release Date: May 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Atlas Engineered Products Ltd (APEUF) reported a 21% increase in revenue for Q1 2025 compared to the same quarter last year, driven by increased sales in the commercial and multifamily building sectors. The company achieved a 56% increase in revenues at LCF, attributed to successful integration and expansion into the commercial building industry. Engineered wood products sales increased by 30% in Q1 2025 over the previous year, supported by an expanded sales force and strong supplier relationships. The company is investing in automation, with the first robotic hub in Clinton under construction, expected to contribute materially starting Q2 2026. Atlas Engineered Products Ltd (APEUF) is actively managing capital through share buybacks, seeing deep value in its stock and making accretive purchases. The company experienced a drag on working capital in Q1 due to higher inventories, which may not fully reverse until Q3 or Q4. There is a funding gap for capital expenditures, with $15 million left for normal CapEx and robotics, which may require additional debt financing. The company faces challenges in converting quotes to orders, despite a 29% increase in quoting activity up to April 2025. Homebuilder demand shows some regional weaknesses, particularly in Ontario and BC, with growing inventory balances in these areas. The company is exposed to risks associated with political and economic uncertainties, which have previously impacted builder confidence and market activity. Q: Can you expand on the quoting activity, which is up 29% year-to-date, and provide insights on regional opportunities and property types? A: Mohammad Hadi Abassi, CEO: We have a national footprint in Canada, and quoting activity varies by region. Currently, we're busy in the Maritimes, Prairies, parts of British Columbia, and Ontario. The U.S. market is also picking up as tariff concerns settle. Our sales force is actively pursuing opportunities across these regions, focusing on wood construction, including housing, condominiums, and commercial projects. Q: Regarding the working capital drag from higher inventories in Q1, do you expect this to reverse in Q2 or Q3? A: Melissa Macrae, CFO: We typically see a working capital drag in Q1, which may not fully reverse until Q3 or Q4. This year, we invested in finished goods to increase capacity for the summer months, which has temporarily impacted cash flow. However, we expect results to improve later in the year. Q: Can you provide any updates on the acquisition in Western Canada and its performance compared to expectations? A: Melissa Macrae, CFO: The acquisition is performing steadily and aligns with our expectations. They are experiencing a strong start to the year, which is encouraging as we work to finalize the acquisition. Q: How are homebuilders reacting to the current market conditions, especially with the recent strength in housing starts? A: Melissa Macrae, CFO: Homebuilders are becoming more comfortable post-elections in Canada and the U.S. Despite previous uncertainties, builders are preparing for upcoming projects, and we see a readiness to move forward as political and tariff-related distractions subside. Q: With $8 million in cash and $15 million in remaining CapEx, how do you plan to address the funding gap? A: Melissa Macrae, CFO: We are focusing on driving internally generated cash flow through increased sales. Additionally, we have a $7.5 million line of credit with our banking partner, which we can utilize as needed to manage cash flow throughout the year. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
27-05-2025
- Business
- Yahoo
At CA$0.77, Is It Time To Put Atlas Engineered Products Ltd. (CVE:AEP) On Your Watch List?
Atlas Engineered Products Ltd. (CVE:AEP), might not be a large cap stock, but it saw significant share price movement during recent months on the TSXV, rising to highs of CA$1.00 and falling to the lows of CA$0.72. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Atlas Engineered Products' current trading price of CA$0.77 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Atlas Engineered Products's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Good news, investors! Atlas Engineered Products is still a bargain right now. Our valuation model shows that the intrinsic value for the stock is CA$1.27, but it is currently trading at CA$0.77 on the share market, meaning that there is still an opportunity to buy now. What's more interesting is that, Atlas Engineered Products's share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta. Check out our latest analysis for Atlas Engineered Products Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let's also take a look at the company's future expectations. With revenues expected to grow by 92% over the next couple of years, the future seems bright for Atlas Engineered Products. If the level of expenses is able to be maintained, it looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? Since AEP is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Are you a potential investor? If you've been keeping an eye on AEP for a while, now might be the time to make a leap. Its buoyant future outlook isn't fully reflected in the current share price yet, which means it's not too late to buy AEP. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. While conducting our analysis, we found that Atlas Engineered Products has 2 warning signs and it would be unwise to ignore them. If you are no longer interested in Atlas Engineered Products, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-02-2025
- Business
- Yahoo
Investors in Atlas Engineered Products (CVE:AEP) have seen impressive returns of 145% over the past five years
Atlas Engineered Products Ltd. (CVE:AEP) shareholders might be concerned after seeing the share price drop 18% in the last month. But that scarcely detracts from the really solid long term returns generated by the company over five years. We think most investors would be happy with the 145% return, over that period. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. Only time will tell if there is still too much optimism currently reflected in the share price. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 26% decline over the last twelve months. Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns. Check out our latest analysis for Atlas Engineered Products While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During the five years of share price growth, Atlas Engineered Products moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). This free interactive report on Atlas Engineered Products' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. Atlas Engineered Products shareholders are down 26% for the year, but the market itself is up 20%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 20%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Atlas Engineered Products you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
