14. October 2020 | 14:04 CET
Adyen, Ryanair, dynaCERT: Return on investment thanks to revolutions
Turn an industry upside down and make a fortune? Since Elon Musk, the term "disruption" has become a familiar term among investors. How does one succeed in turning an industry upside down, and how do yesterday's revolutionaries look? Answers to these questions can be in the examples of three companies that could not be more different. After the Munich-based payment service provider Wirecard went bankrupt, many investors are now focusing on the Dutch competitor, Adyen. The payment service provider is digital and platform-independent. As befits an innovative company in the industry, Adyen processes payments mobile and in stores. The Company has had a European banking license since 2017 and has been proliferating the market ever since.
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ISIN: CA26780A1084 , NL0012969182 , IE00BYTBXV33
Adyen: Disruption story with a catch
Some figures from the first half of the year show that Adyen is well-positioned. Despite the lockdown, the Company managed to increase the number of transactions by more than 20% compared to the same period last year. Without the pandemic, this figure would certainly have been significantly higher. To remain on the future growth path, the Company is investing in the brightest minds and expanding its IT.
The goal: to handle more and more customers and more and more transactions in the future. Since Adyen is already profitable today, profits are likely to bubble up even more after the expected growth. Although the share is already ambitiously valued, its value still has potential. After a 170% return in twelve months, however, a small correction could soon begin. Nevertheless, the Company brings a lot to the table that makes up a disruption story.
Ryanair shows courage in the crisis
Ryanair also initiated a revolution once. When flying in this country still had something glamorous about it, the Irish were already relying on self-printed tickets at bargain prices and doughy sandwiches for an extra charge. The pioneer of low-cost airlines has won numerous new customers and changed the way we fly. But this process has already been completed. Today, a new awareness of environmental protection and CO2 emissions means that the short trip to London or Rome no longer sounds as enticing for many customers as it did five years ago. The share price has also felt the effects of this. Not to mention the shock waves caused by the pandemic.
In the first quarter of the financial year, Ryanair's turnover fell by no less than 95%. While more than 40 million passengers checked in a year ago, the figure was just 500,000 in the second quarter of this year. Nevertheless, Ryanair intends to profit from the crisis and expand its fleet to compete for market share once the impact of COVID-19 diminishes. The majority of airline companies remain grounded and their share prices on the brink of collapse. Yet Ryanair has grown by as much as 4% in the last 12 months. This relative strength could be a good sign; however, the share remains highly speculative.
dynaCERT wants to make dirty diesel greener
The stock of dynaCERT is also considered speculative - the Company has both spirit of the times and market on its side. dynaCERT offers retrofit units for diesel engines. These use hydrogen as a catalyst and help to reduce fuel consumption and CO2 emissions of old diesel engines. As the Company itself reports, savings of up to 19% are possible. The focus of dynaCERT is on local authorities and public transport companies that want to modernize their existing vehicle fleets at low cost. A catalyst, from dynaCERT called "HydraGEN" (TM), varies in price by size, but can be amortized within a year.
Investments should meet the spirit of the times
On the stock exchange, dynaCERT's share price increased by 16.7% over the past twelve months. The Company is currently valued at EUR 138 million and has been able to acquire various customers in recent months. Most recently, the Company entered the logistics sector together with a partner and presented software that allows fleet operators to evaluate and interpret data relating to logistics processes in real-time.
The offer is open to users of HydraGEN, as well as all other truck fleets, and the design improves fleet management. In this way, dynaCERT remains true to its policy of winning new customers and ensuring growth through innovative solutions. Timing is crucial if investors are to benefit from disruption. Those who invest too late are likely to pay a surcharge. It also depends on the spirit of the times - which currently speaks against shares like Ryanair, for example. However, young companies with several potential growth areas, such as dynaCERT, can be promising for speculation-oriented investors.