• Atlas Pearls farms South Sea pearls, producing high-end jewelry.
  • The company sells finished jewelry online and raw pearls to trade customers at auction.
  • Following the release of outstanding Half Year 2024 results the surging share price fell.

Atlas Pearls breaks conventional investing wisdom to stay clear of “one-trick-ponies.”  The company has a sole source of revenue –South Sea pearls grown and harvested from seven farms sold at auction and processed into high-end jewelry sold online.

The company has an admirable track record of financial performance over the last four fiscal years, recovering quickly following a loss in the initial onset of the COVID 19 pandemic.

Atlas Pearls Financial Performance

Atlas Pearls Financial Performance 2023

Source: ASX

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FY 2023 revenues rose 26% and net profit was up 98%. On 29 February, the company reported its Half Year 2024 Financial Results, exceeding the previous full year’s percentage gains by wide margins. Revenues were up 115% and net profit rose a staggering 452%.

 

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Reflecting the better-than-expected financial results, management declared a special dividend of $0.015 per share. The share price rose on the news, only to slide back to below pre-announcement levels within days.

atp atlas pearls ltd stock price chart overview 2024

Source: ASX

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Year over year the share price is up 433.3%.

Atlas has bargain-basement valuation metrics with a price to earnings ratio (P/E) of 2.79 and a future oriented price to earnings growth ratio (P/EG) of 0.01. P/EGs under 1.0 are considered undervalued.

An analyst at Red Leaf Securities has a BUY recommendation on  Atlas Pearls, citing the company’s “better than expected Half Year 2024 financial results and its declaration of a special dividend as a sign of financial strength and confidence in the business, leading to ATP offering potential upside.”

Atlas appears to be under the radar of the majority of the analyst community as sites like marketscreener.com and yahoo finance Australia show no analysts reporting recommendations on ATP.

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