Atlas Engineered Products Ltd V.AEP

I love a bargain, Atlas is cheap, profitable and growing

[laurencelefou]

So how cheap is Atlas Engineered Products?
 
At $0.62, the market cap is $38,790,000 ($0.62 X 62,566,049 shares) and enterprise value is $35,602,000.  Revenue for FY 2021 was $55,000,000, net income was $6,954,000, operating cash flows was $9,579,000, cash on hand was $8,947,000 and debt was $6,971,000. 
 
Year over year revenue is up 53.9% ($55,000,000; 2021 - $35,734,000; 2020).  Over a three-year period, revenue has grown annually by 68% ($55,000,000; FY 2021-12-31 - $11,597,000; FY 2018-05-31).  I don't expect growth to continue at the same pace, but I do expect Atlas to be able to grow the top and bottom lines.
 
How has the share price behave over this period?  On April 30, 2018, the share price was $0.52 and the enterprise value was ±$17,000,000, the current share price is $0.62 (2022-04-22) and enterprise value is $35,602,000.  The number of shares has grown from 30,730,405 (2018-05-31) to 62,556,049.  Over this period, the enterprise value has double while revenue has grown by almost 5 times.
 
EV / Net income is 5.1 ($35,602,000 / $6,954,000)

EV / Operating cash flows is 3.7 ($35,602,000  / $9,579,000) 

[pennydredful]

To   summarize    the   shares   went   from   .52   to  .62   over  4  years   ,  meaning  the  return  was  .025   cents    per  year     or   4.80%   .   Massive  dilution   limited&

[laurencelefou]

Atlas began trading on the venture exchange after a reverse takeover done in September 2017.  By the end of the first Fiscal Year (2018-05-31), Atlas had 30,730,405 shares outstanding.   By the end of Fiscal Year 2021 (2021-12-31), Atlas had 57,750,730 shares outstanding, 25,000 shares more than Fiscal Year 2020. The cash provided by the new shares allowed Atlas to acquire companies

[Daudau11]

Totally agree, massive dilution limited the return.  Even now there is still warrants/options outstanding (all in the money of course) making the diluted outstanding shares @ 77,063,773 (excluding the 200k they just granted to directors)

[laurencelefou]

On December 31, 2021, there were 57,750,730 shares outstanding, there were 2,712,500 options outstanding and there were 12,148,019 warrants that could be transformed into shares.  Potential number of shares 72,586,249.   On February 8, 2022, 2,102,819 warrants were exercised and 10,045,200 expired.   Since January 1, 2022, Atlas has purchased 1,846,500 shares at an average price

[Daudau11]

Thanks for pointing out that 10m warrants expired.  I thought they still existed.