Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>BQE reported Q4 &amp; 2023 financial results yesterday that came in largely ahead of our expectations on revenue.</li>
<li>Proportional revenue was $5.4M compared to our estimate of $4.2M and adjusted EBITDA was $0.5M compared to our estimate of $0.6M.</li>
<li>BQE remains well positioned for another record year in 2024, we are expecting 8% revenue growth and 36% EBITDA growth.</li>
</ul>


BQE reported Q4 &amp; 2023 financial results yesterday that came in largely ahead of our expectations on revenue.
Proportional revenue was $5.4M compared to our estimate of $4.2M and adjusted EBITDA was $0.5M compared to our estimate of $0.6M.
BQE remains well positioned for another record year in 2024, we are expecting 8% revenue growth and 36% EBITDA growth.


BQE: Excellent Q4 Financials; Increasing Target Price

<ul>
<li>BQE will be reporting Q4 &amp; 2023 financial results in ~2 weeks, we are expecting proportional revenue of $4.2M, gross margin of 45%, and adj. EBITDA of $0.6M (14% margin).</li>
<li>Metals prices have been rising steadily over the last month with copper up 9%.</li>
<li>BQE’s China JV has leverage to the copper price as it sells recovered metals.</li>
</ul>


BQE will be reporting Q4 &amp; 2023 financial results in ~2 weeks, we are expecting proportional revenue of $4.2M, gross margin of 45%, and adj. EBITDA of $0.6M (14% margin).
Metals prices have been rising steadily over the last month with copper up 9%.
BQE’s China JV has leverage to the copper price as it sells recovered metals.


<ul>
<li>BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.</li>
<li>The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.</li>
<li>BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. </li>
</ul>


BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.
The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.
BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. 


BQE: Profitable & Growing Micro-Cap in the Water Treatment Industry

Thematic (Sector/Industry)

<ul>
<li>Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.</li>
<li>In this report, we analyze how the 9 newly acquired firms fit into our 6-part framework for identifying takeout candidates.</li>
<li>Our potential takeouts watchlist was up 22% vs. the TSX up 14% and XCS up 15% since November.</li>
</ul>


Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.
In this report, we analyze how the 9 newly acquired firms fit into our 6-part framework for identifying takeout candidates.
Our potential takeouts watchlist was up 22% vs. the TSX up 14% and XCS up 15% since November.


Finding the Next Takeout in Canadian Small-Caps - Part Two

Canada

BQE Water Inc. operates as a water treatment company. The Company specializes in providing wastewater treatment solutions to mining industry. BQE Water offers its services worldwide.

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BQE Water (BQE CN)

BQE: Excellent Q4 Financials; Increasing Target Price

Proportional revenue was $5.4M compared to our estimate of $4.2M and adjusted EBITDA was $0.5M compared to our estimate of $0.6M.

Atrium Research

BQE: Q4 Financials Preview

BQE will be reporting Q4 & 2023 financial results in ~2 weeks, we are expecting proportional revenue of $4.2M, gross margin of 45%, and adj. EBITDA...

Atrium Research

BQE: Profitable & Growing Micro-Cap in the Water Treatment Industry

BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable. The Company has major...

Atrium Research

Finding the Next Takeout in Canadian Small-Caps - Part Two

Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.

Atrium Research

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