Hey there,
Nothing wrong with Atrium - it is a decent company that pays out an attractive yield and that has delivered consistent growth. Nothing flashy, and growth and the mid-to-high single digits. The company is trading inline with historical averages, so its not cheap but its not expensive either.
Has a pretty decent history against expectations as it had either met or beat earnings expectations in 6 of the past 8 quarters.
We've actually looked at the company a few times, so its one that we kind of keep an eye on. The one headwind that could impact the company is higher interest rates. As a mortgage lender, volumes may slow in such an environment and its own interest on debt will go up. On the flip side - higher interest rates would lead to higher spreads for the company so that could be a tailwind and offset rising rates. I've look at their filings, and here is how it could play out:
"If interest rates on debt had been one percentage point higher (lower) during the three month period ended
March 31, 2021, income and comprehensive income would have been reduced (increased) by approximately
$1,709 during the period, assuming that no changes had been made to the interest rates at which new mortgage
loans were entered into. However, if new mortgage loans had been entered into at higher (lower) interest
rates, the resulting reduction of income and comprehensive income would have been less than (greater than)
$1,709. "
So as you can see, its something to keep an eye on. Higher interest rates likely result in lower income while lower interest rates results in higher income.
Mat