These Stocks Deliver Shareholder Value: RE Royalties and Allianz Leading the Way—Gerresheimer Catching Up?

RE Royalties: Shareholder Value Put Into Practice

The Canadian company has pioneered the introduction of the royalty model—familiar from various industries—into the world of renewable energy. The company grants loans and, in return, receives revenue-based royalties from private and publicly traded companies in the form of a share of revenue. Founded in 2016, the diversified portfolio comprises more than 120 active royalties for projects across solar, wind, hydro, battery storage, energy efficiency, and renewable natural gas in North America, South America, and Asia.

This gives shareholders access to a broadly diversified portfolio spanning various green energy sectors and geographically dispersed across multiple regions. In addition, the company pursues an attractive dividend policy. In recent years, investors have received an annual dividend of CAD 0.04, corresponding to a yield of over 10%.

Even though the shares have already risen by 50% this year to CAD 0.355, the market capitalization of CAD 15 million remains very modest. Given the attractive business model, proven growth, and significant potential, management considers the valuation clearly too low.
Against this backdrop, the company initiated a strategic review in the spring to explore opportunities to increase enterprise value. Various options are being evaluated, including a potential sale of the company and measures to optimize the capital structure through equity or debt financing. The process is open-ended and is being supported by PwC CF in the role of strategic partner.
With the announced review, the company aims to ensure it is strategically well-positioned for the next phase of growth. According to the company, the project pipeline is well-stocked with approximately CAD 20 million in binding letters of intent, as well as an additional CAD 200 million in projects under active review.

COO Peter Leighton explained RE Royalties' strategy at the 19th International Investment Forum.

https://youtu.be/5dQvcZkFR7E

Allianz: A Model Company

This DAX heavyweight has created significant shareholder value in the past. The share has doubled in value over the past three years, though gains so far this year have been modest. In addition, shareholders are rewarded with an attractive dividend yield of over 4%. However, analysts consider the stock to be fairly valued at its current level.

The broadly diversified insurance and asset management group has been delivering stable cash flows for years, with the asset management business serving as the key driver of returns. The company started the current fiscal year with record earnings. Its leading role in the use of AI is also impressive. Allianz took first place worldwide in the Evident AI Index for Insurance 2026.

The share buyback program, with a volume of EUR 2.5 billion, is proceeding as planned. It was recently reported that Allianz is considered the leading bidder for HSBC's insurance division in Singapore. The transaction could be worth up to USD 2 billion.

Gerresheimer: Activist Investors on the Rise

By contrast, the packaging specialist for the pharmaceutical industry serves as an example of how to destroy shareholder value. As late as the summer of 2024, share prices were trading at EUR 100 and above. Then, in the first half of 2025, an attempt was made to sell the company to financial investors for EUR 90, but it ultimately failed. After that, the outlook turned bleak.

A faltering business with margins that lagged significantly behind those of competitors and high debt were one aspect. What weighed much more heavily, however, and caused the stock to plummet to EUR 15, were several profit warnings and investigations by the German Financial Supervisory Authority (BaFin). This severely damaged investor confidence.
Since hitting bottom, the stock has recovered to its current price of EUR 25, valuing the company at nearly EUR 900 million. But Gerresheimer is not quite out of the woods yet. In the spring, the company had to postpone the release of its financial results for the past fiscal year and the first quarter, as well as its annual shareholders' meeting.

The company cites ongoing investigations and the more complex work of a second external auditor on the annual and consolidated financial statements, as well as the audit of business transactions from 2024 and 2025, as reasons for the delay. The release is now expected this month.

In addition, Gerresheimer is currently attempting to sell its US subsidiary Centor, which would significantly improve its capital structure before the end of this year. Furthermore, an extension of the repayment deadline was secured with key lenders. Activist investors have used the past few months to accumulate shares. According to the latest voting rights disclosures, their stake now stands at just under 17%. However, analysts currently consider the shares to be overvalued. Who will be proven right?

RE Royalties is currently reviewing all options to increase value for shareholders. Even before concrete decisions are announced, this should continue to boost the share price. The business model is lucrative for shareholders and enables the payment of a high dividend. The well-stocked pipeline points to growth. The heavyweight Allianz has proven in the past that it can generate added value for investors. The entry of activist investors at Gerresheimer is a positive sign. The stock has found its bottom, and there is still significant room to rise toward previous highs.