This Canadian penny stock is undervalued, analyst says

Clarus Securities analyst Noel Atkinson said in an April 23 update that AmeriTrust Financial Technologies (AmeriTrust Financial Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:AMT) continues to expand its U.S. dealer network, maintaining a “Speculative Buy” rating and $0.20 target.

Atkinson said AmeriTrust recently added more than 60 new nameplate vehicle dealerships across 16 states to its lease-financing partner roster, including locations owned by some of the largest U.S. dealership groups. He said the company is also working to ensure dealer lease requests fit AmeriTrust’s focus on prime-credit consumers and newer, low-mileage used vehicles.

AmeriTrust provides lease-financing solutions to auto dealerships across the United States.

Atkinson said remarketing activity, which involves taking vehicles coming off lease and reselling or re-leasing them, also appears to be growing, with enough demand for the company to add staff. Management is also exploring regulatory avenues that could further accelerate remarketing volumes.

For the fourth quarter of 2025, AmeriTrust reported revenue of $0.4-million, in line with Atkinson’s forecast, from legacy vehicle servicing. Adjusted EBITDA was negative $3.9-million, missing his negative $2.4-million estimate, mainly because of one-time legacy severance costs and new hires ahead of the restart of leasing activity late in the first quarter of 2026.

Atkinson left his revenue outlook unchanged but raised his SG&A expense forecast. He expects a modest contribution from new leasing and remarketing activities in the first quarter of 2026, with growth accelerating in the second quarter and beyond.

“We believe that key potential catalysts for AMT in 2026e include (1) the sale/securitization of its first vehicle lease portfolio and (2) the expansion of its lease funding facilities,” Atkinson said.

His $0.20 target is based on 15x EV/2028 estimated Adjusted EBITDA, which he said is conservative versus the peer group and well below multiples for sector leaders CarMax and Carvana.

Atkinson expects AmeriTrust to post Adjusted EBITDA of negative $9.0-million on revenue of $7.5-million in fiscal 2026, improving to $0.4-million in Adjusted EBITDA on revenue of $31.4-million in fiscal 2027.

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