10. February 2021 | 08:30 CET
Encavis, dynaCERT, Verbio - continue to outperform with green stocks!
The awareness of protecting the environment and therefore reducing emissions is becoming more and more prevalent in society. Numerous industries are growing in the wake of socially, politically and fiscally motivated changes and demand sustainable products or solutions. "Green" investment has many facets. In the following, we present three companies that are dedicated to the topics of emission reduction and renewable energies. In the past, these stocks have been able to outperform the broad market enormously. Where is this trend continuing unabated?
time to read: 2 minutes by Carsten Mainitz
ENCAVIS AG - slight profit-taking after doubling in price
Encavis produces electricity exclusively from renewable energies and is now one of the larger independent electricity producers. The Company's many years of profitable growth are also reflected, among other things, in a market capitalization of EUR 3.1 billion and a shareholder-friendly dividend policy.
A few days ago, the SDAX-listed Group received another accolade for its sustainable corporate policy. The rating agency MSCI raised the Company's sustainability rating from A to AA. A few weeks ago, another agency, ISS ESG, had already raised the B- to a B rating.
Shareholders of the Hamburg-based Group cannot complain given a doubling of the share price within the last 12 months. In the last few days, the share price fell by just under 10% from its recently reached all-time high of EUR 25. A consolidation of the title is not a significant blow. The analysts at Hauck & Aufhäuser, who initiated coverage of the stock at the beginning of the month with a "hold" rating and a price target of EUR 23, probably take a similar view. We are convinced that the growth prospects should soon be reflected in higher price targets.
DYNACERT INC - Analysts expect the share price to triple!
The share of dynaCERT has gained almost 50% in the last 4 weeks. If you believe the analysts of the research company GBC, then the share can still triple from the current price level of CAD 0.70 and a market capitalization of about CAD 270 million.
The Canadian cleantech Company kills two birds with one stone with its patented hydrogen technology solutions for retrofitting diesel engines: fuel consumption and pollutant emissions can be reduced by 20% each.
The proof of concept has already been provided several times. The technology is already being used in many vehicles, including vehicle fleets. However, the Company offers another added value for customers. The Canadians have developed their own software to measure and optimize fuel consumption. Soon, the Company will expand the solution to include additional functionalities. The advantages of the dynaCERT solutions are straightforward and promise further rising prices. Whether the CAD 2 mark can also be cracked soon remains to be seen.
VERBIO VEREINIGTE BIOENERGIE AG - Sell on good news
Verbio is one of the leading independent bioenergy producers in Europe and the only large-scale industrial producer of biodiesel, bioethanol, and biomethane. These green fuels can save around 90% of the CO2 emissions produced by conventional fuels. The Company is rooted in eastern Germany and employs about 700 people across the Group, including its foreign subsidiaries in India, the US, Canada, Poland and Hungary.
Last week, the Group published good half-year figures. Sales increased by 10% to EUR 479 million and earnings rose at an enormously disproportionate rate. Operationally, earnings (EBITDA) grew by 49% to EUR 80 million. Earnings per share rose from EUR 0.40 to EUR 0.70. Investors took advantage of the good news to take profits. The share price fell by around 15% in the last few days.
The Group's growth prospects are intact. The production plants for bioethanol and biodiesel have shown good capacity utilization in recent months. Verbio intends to start up biomethane plants in the USA and India this fall.