Close menu

October 5th, 2021 | 13:05 CEST

Alphabet, Water Ways Technologies, TOMRA Systems: Return on investment with clean water and sustainability

  • Sustainability
Photo credits:

Clean water is a human right for a reason. When precious water is polluted, diseases spread. Children and the elderly in particular suffer from water pollution. Geo-strategists are even expecting armed conflicts over water. For example, when huge rivers, which are often the lifelines of entire continents, become polluted and countries downstream suffer. We present three stocks that have something to do with water.

time to read: 3 minutes | Author: Nico Popp
ISIN: ALPHABET INC.CL C DL-_001 | US02079K1079 , Water Ways Technologies | CA9411881043 , TOMRA SYSTEMS ASA NK 1 | NO0005668905

Table of contents:

    Alphabet: How green is the tech giant really?

    Alphabet is known as a tech company and operates Google, the most popular search engine, among other things. Alphabet is also present on our smartphones, thanks to the Android operating system. In addition, there are numerous services, around Office and also sports, fitness and health. Since all of these services are web applications, a large amount of computing power is required. And where there is a lot of computing, heat is generated. A large amount of cooling water is used to cool the data centers. Google, which likes to present itself as sustainable, is silent on the figures. The only clear thing is that the Company has budgeted a combined 8.7 million cubic meters of water for its data centers in three US states in 2019. The news agency Bloomberg Green reported this some time ago.

    While there is likely little to no pollution of cooling water, Alphabet's example shows that even supposedly green companies can consume water on a grand scale. Given the numerous visions of the Company from Mountain View, it would be no wonder if they would take up the topic at some point. Currently, however, water hardly plays a role at Alphabet. Sales rose by almost 50% in the first half of the year, and profits increased by a staggering 167%. The stock remains exciting but is, of course, no longer a newcomer.

    Water Ways Technologies: Small-cap water company with international customers

    One such newcomer is Water Ways Technologies. The Company from Israel starts where most water is used and polluted: in agriculture. To this end, Water Ways Technologies offers irrigation and control systems. In this way, only as much water as necessary is used, and water is used efficiently. Water Ways currently has 400 customers in 40 countries. Most recently, the Company won three contracts worth a total of CAD 570,000. The projects in Mexico, Canada and China underscore the Company's international focus and great potential.

    A study by Allied Market Research puts the market for smart irrigation systems at USD 1.44 billion in 2020. By 2027, the market is expected to grow to USD 5.57 billion. With its experience, Water Ways Technologies aims to secure a large share of that growth. "We are winning more and more contracts around the world, which speaks to our impressive reputation, global reach and track record as a leading provider of agricultural solutions for farmers and growers," commented Ohad Haber, Chairman and CEO, on the recent contract wins. With Water Ways already achieving significant increases in revenue and EBITDA in the first half of 2021 and the issue of sustainability and food becoming more acute as prices rise, investors may want to take a closer look at the share.

    TOMRA Systems: Can deposit as a guarantor of returns

    One stock that has created a market of its own with innovative technology is TOMRA Systems. Whenever someone brings deposit bottles into a German supermarket, there is a very good chance that a TOMRA vending machine will accept the empties and print the deposit receipt. TOMRA claims to have already installed more than 85,000 such machines worldwide. As more and more countries rely on deposit bottles, the number of new orders for TOMRA is not dwindling. Latvia, for example, recently opted for such a system. In the second quarter, sales at TOMRA increased by 27%. The order backlog also reached a new record.

    That puts a company that has been a hidden champion for many years in an excellent position. Recycling is playing a growing role in more and more countries. Because of rising oil prices and the global attempt to save CO2, this trend will not decrease. TOMRA is ideally positioned and growing steadily. The only drawback is that the dividend is low, and the stock is already expensive.

    While Alphabet is more of a water consumer and TOMRA Systems, as a market leader in its niche, is already actively followed by many market participants, Water Ways Technologies could strike a nerve in the current environment. Agriculture takes about 70% of the world's water, so it is a logical place to start. Such a small company with such an international footprint is hard to find. It is worth taking a closer look at the value.

    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.

    Der Autor

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by Nico Popp on May 23rd, 2023 | 08:15 CEST

    Bringing the lead home: Borussia Dortmund, BYD, Defense Metals

    • Mining
    • RareEarths
    • Electromobility
    • Sustainability

    For the first time since 2012, the German football champion this weekend might not be FC Bayern Munich. After a turbulent weekend, challenger Borussia Dortmund holds all the trump cards ahead of the final matchday. But will their lead be enough, or will they succumb to nervousness in the decisive phase? We look at three stocks that only need to extend their lead to the finish line. Where profits await and where, despite everything, risks lurk.


    Commented by Nico Popp on May 8th, 2023 | 07:10 CEST

    This battery technology is conquering the West: Mercedes-Benz, BYD, First Phosphate

    • Mining
    • phosphate
    • Batteries
    • Electromobility
    • Sustainability

    The days when Chinese companies imitated German products and even copied them brazenly are long gone. At best, Chinese companies are still borrowing from German products in terms of design. When it comes to the technology itself, the Chinese have long been leaders - especially when it comes to batteries for electric cars. BYD, for example, has been producing lithium iron phosphate (LFP) batteries for a long time and uses them in its cars. Now the technology is spilling over into the West. We show what opportunities could arise from this.


    Commented by Nico Popp on March 28th, 2023 | 07:36 CEST

    E-cars - Out of a dream! BYD, BMW, First Phosphate

    • Mining
    • Phosphate
    • Electromobility
    • Sustainability

    While German politicians are still discussing the end of the internal combustion engine, major car companies have long since made up their minds. The future is electric. But the mobility revolution is far from being a done deal! We explain where there are still pitfalls and why a small company from Canada could soon be sitting at the big levers to make the dream of clean e-mobility come true for everyone.