Atrium Mortgage Investment Corp reports 11.9% Net Income growth and 9.5% Revenue growth
08.02.2017 • About Atrium Mortgage Investment Corp (
$AI) • By InTwits
Atrium Mortgage Investment Corp reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 83.2% in 2016 vs. 81.9% in 2015 vs. 79.8% in 2012
- The company has potentially unprofitable business model: ROIC is at 6.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Atrium Mortgage Investment Corp ($AI) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17.235 | 23.760 | 34.956 | 40.206 | 44.042 | 9.5% |
| EBITDA | 13.753 | | | 32.934 | 36.641 | 11.3% |
| Net Income | 13.358 | 18.000 | 21.037 | 23.337 | 26.120 | 11.9% |
Balance Sheet
|
|---|
| Cash | 10.628 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Short Term Debt | 0.000 | 0.326 | 0.313 | 0.029 | 0.175 | 503.4% |
| Long Term Debt | | 30.611 | 99.235 | 100.180 | 101.098 | 0.9% |
Cash flow
|
|---|
| Capex | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Ratios
|
|---|
| Revenue growth | 51.0% | 37.9% | 47.1% | 15.0% | 9.5% | |
| EBITDA growth | 42.7% | | | | 11.3% | |
| EBITDA Margin | 79.8% | 0.0% | 0.0% | 81.9% | 83.2% | 1.3% |
| Net Income Margin | 77.5% | 75.8% | 60.2% | 58.0% | 59.3% | 1.3% |
| ROIC | | | | 6.5% | 6.9% | 0.5% |
| ROE | 7.6% | 8.5% | 9.1% | 8.9% | 9.4% | 0.5% |
| Net Debt/EBITDA | -0.8x | | | 3.0x | 2.8x | -0.3x |
Atrium Mortgage Investment Corp ($AI) key quoterly financial indicators
| mln. CAD | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 10 | 11 | 11 | 12 | 6.6% | 11.1% | 8.7% | 11.7% |
| Net Income | 6 | 6 | 7 | 7 | 9.3% | 10.5% | 11.9% | 15.9% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | | -100.0% | | |
| Short Term Debt | 0 | 0 | 0 | 0 | -90.4% | 54.3% | -59.0% | 503.4% |
| Long Term Debt | 100 | 101 | 101 | 101 | 1.0% | 1.0% | 0.9% | 0.9% |
Ratios
|
|---|
| Net Income Margin | 60.5% | 60.2% | 59.4% | 57.4% | 1.5% | -0.3% | 1.7% | 2.1% |
Revenue and profitability
Atrium Mortgage Investment Corp's Revenue increased on 9.5%. Revenue growth showed acceleration in 16Q4 - it increased 11.7% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.8 pp from 5.9% to 7.7% in FY2016.
Net Income marign increased slightly on 1.3 pp from 58.0% to 59.3% in 2016.
Return on investment
The company operates at low ROIC (6.92%) and ROE (9.44%). ROIC showed almost no change in 2016. ROE increased slightly on 0.52 pp from 8.9% to 9.4% in 2016.
Leverage (Debt)
Debt level is 2.8x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.3x from 3.0x to 2.8x in 2016. Debt increased slightly on 1.1% while cash didn't change in 2016.
Appendix 1: Peers in Financial
Below we provide Atrium Mortgage Investment Corp benchmarking against other companies in Financial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (53 companies) | | 7.0% | 9.0% | 3.0% | 5.1% |
|---|
| Atrium Mortgage Investment Corp ($AI) | | 37.9% | 47.1% | 15.0% | 9.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| Grenville Strategic Royalty Corp ($GRC) | | | -84.1% | 72.3% | |
| |
|---|
| Median (36 companies) | 39.5% | 33.5% | 39.8% | 30.0% | 42.2% |
|---|
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (55 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.9% |
|---|
| Atrium Mortgage Investment Corp ($AI) | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (55 companies) | 4.6% | 3.8% | 3.9% | 2.8% | 3.0% |
|---|
| Atrium Mortgage Investment Corp ($AI) | | | | 6.5% | 6.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (27 companies) | 5.5x | 4.6x | 4.7x | 6.5x | 9.7x |
|---|
| Atrium Mortgage Investment Corp ($AI) | -0.8x | | | 3.0x | 2.8x |
