Rolling up a mom and pop fragmented industry is founder led Atlas Engineered Products.

This is a very illiquid microcap traded on the TSX Venture exchange. Listed since ‘17 and operating since ‘99, this is a business that buys small roof truss manufacturers (regional businesses because of shipping) and drastically improves operations. With an average price of 4x ebitda, they are able to get great returns by focussing on profit and efficiency with sales and marketing to boot!

While certainly some short term headwinds, longer term the industry will have the wind at its back with a supply shortage of housing in Canada and immigration continuing to boost new demand.

There is currently an opportunity to also increase organic growth over the next decade with an industry that is short on labor - in comes increased investment and interest in other manufactured products ready for onsite assembly. Wall panels alone could easily double the average revenue per build when the industry inevitably shifts in this direction.

There’s also an NCIB in place till end of the year for 4.7 million shares (10% of float).

Currently trades at 6 P/E.

I own shares. Check it out and signup for more free content like this one.

Cheers!

Simon