ATLAS ENGINEERED PRODUCTS LT (AEP.CA) Stock Fundamental Analysis
TSX-V:AEP - TSX Venture Exchange - CA0493041085 - Common Stock - Currency: CAD
Overall AEP gets a fundamental rating of 6 out of 10. We evaluated AEP against 12 industry peers in the Paper & Forest Products industry. While AEP has a great profitability rating, there are some minor concerns on its financial health. AEP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
AEP had negative earnings in the past year.
In the past year AEP had a positive cash flow from operations.
AEP had positive earnings in 4 of the past 5 years.
AEP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AEP has a better Return On Assets (1.37%) than 83.33% of its industry peers.
AEP has a Return On Equity of 2.33%. This is amongst the best in the industry. AEP outperforms 83.33% of its industry peers.
With an excellent Return On Invested Capital value of 3.27%, AEP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.33% | ||
| ROIC | 3.27% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
AEP has a better Profit Margin (2.09%) than 83.33% of its industry peers.
AEP's Operating Margin of 6.32% is fine compared to the rest of the industry. AEP outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of AEP has grown nicely.
Looking at the Gross Margin, with a value of 23.66%, AEP is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
AEP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.32% | ||
| PM (TTM) | 2.09% | ||
| GM | 23.66% |
OM growth 3Y-33.9%
OM growth 5Y22.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.17%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AEP is destroying value.
There is no outstanding debt for AEP. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
AEP has an Altman-Z score of 2.33. This is not the best score and indicates that AEP is in the grey zone with still only limited risk for bankruptcy at the moment.
AEP has a Altman-Z score of 2.33. This is amongst the best in the industry. AEP outperforms 83.33% of its industry peers.
AEP has a debt to FCF ratio of 9.20. This is a negative value and a sign of low solvency as AEP would need 9.20 years to pay back of all of its debts.
The Debt to FCF ratio of AEP (9.20) is comparable to the rest of the industry.
AEP has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AEP (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 9.2 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.43
WACC7.66%
2.3 Liquidity
AEP has a Current Ratio of 4.20. This indicates that AEP is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 4.20, AEP belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
AEP has a Quick Ratio of 3.29. This indicates that AEP is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of AEP (3.29) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.2 | ||
| Quick Ratio | 3.29 |
3. Growth
3.1 Past
AEP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -110.47%.
The Revenue has grown by 12.98% in the past year. This is quite good.
The Revenue has been growing by 9.94% on average over the past years. This is quite good.
EPS 1Y (TTM)-110.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-253.57%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y0.5%
Revenue growth 5Y9.94%
Sales Q2Q%6.14%
3.2 Future
AEP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 173.86% yearly.
Based on estimates for the next years, AEP will show a very strong growth in Revenue. The Revenue will grow by 31.73% on average per year.
EPS Next Y366.7%
EPS Next 2Y173.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year27.11%
Revenue Next 2Y31.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
AEP reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 16.02, the valuation of AEP can be described as correct.
Based on the Price/Forward Earnings ratio, AEP is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.74, AEP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AEP is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of AEP is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.15 | ||
| EV/EBITDA | 7.44 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AEP has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as AEP's earnings are expected to grow with 173.86% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y173.86%
EPS Next 3YN/A
5. Dividend
5.1 Amount
AEP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
TSX-V:AEP (5/2/2025, 7:00:00 PM)
0.77
-0.01 (-1.28%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryPaper & Forest Products
Earnings (Last)
Earnings (Next)
Inst Owners3.82%
Inst Owner ChangeN/A
Ins Owners9.71%
Ins Owner ChangeN/A
Market Cap54.21M
Analysts84.29
Price Target2.2 (185.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)21.36%
Min EPS beat(2)-51.46%
Max EPS beat(2)94.17%
EPS beat(4)1
Avg EPS beat(4)-21.68%
Min EPS beat(4)-94.17%
Max EPS beat(4)94.17%
EPS beat(8)2
Avg EPS beat(8)-14.72%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.49%
Min Revenue beat(2)2.35%
Max Revenue beat(2)4.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.48%
Min Revenue beat(4)-10.21%
Max Revenue beat(4)4.63%
Revenue beat(8)3
Avg Revenue beat(8)-1.07%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-5.26%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-26.31%
EPS NY rev (3m)-26.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-3.12%
Revenue NY rev (3m)-8.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 16.02 | ||
| P/S | 0.99 | ||
| P/FCF | 19.15 | ||
| P/OCF | 13.76 | ||
| P/B | 1.1 | ||
| P/tB | 2.5 | ||
| EV/EBITDA | 7.44 |
EPS(TTM)-0.01
EYN/A
EPS(NY)0.05
Fwd EY6.24%
FCF(TTM)0.04
FCFY5.22%
OCF(TTM)0.06
OCFY7.27%
SpS0.78
BVpS0.7
TBVpS0.31
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.37% | ||
| ROE | 2.33% | ||
| ROCE | 4.63% | ||
| ROIC | 3.27% | ||
| ROICexc | 4.19% | ||
| ROICexgc | 7.89% | ||
| OM | 6.32% | ||
| PM (TTM) | 2.09% | ||
| GM | 23.66% | ||
| FCFM | 5.15% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-33.9%
OM growth 5Y22.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.17%
GM growth 5Y-0.06%
F-Score6
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 9.2 | ||
| Debt/EBITDA | 2.55 | ||
| Cap/Depr | 21.74% | ||
| Cap/Sales | 2.02% | ||
| Interest Coverage | 1.47 | ||
| Cash Conversion | 45.94% | ||
| Profit Quality | 246.93% | ||
| Current Ratio | 4.2 | ||
| Quick Ratio | 3.29 | ||
| Altman-Z | 2.33 |
F-Score6
WACC7.66%
ROIC/WACC0.43
Cap/Depr(3y)75.32%
Cap/Depr(5y)57.69%
Cap/Sales(3y)4.97%
Cap/Sales(5y)3.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-110.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-253.57%
EPS Next Y366.7%
EPS Next 2Y173.86%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)12.98%
Revenue growth 3Y0.5%
Revenue growth 5Y9.94%
Sales Q2Q%6.14%
Revenue Next Year27.11%
Revenue Next 2Y31.73%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-50.23%
EBIT growth 3Y-33.57%
EBIT growth 5Y34.25%
EBIT Next Year216.51%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-60.11%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-49.04%
OCF growth 3Y-36.26%
OCF growth 5Y-2.52%