Up to 1,400% with Bloom Energy and Nordex! Is Zefiro Methane way too cheap?

Zefiro: Far Too Cheap?

Zefiro Methane is evolving from a hidden gem into a cash cow. And it is doing so with an easy-to-understand business model. The company monitors and plugs abandoned oil and gas wells. Even in Germany, escaping methane harms nature and people. But in the US, it is becoming an increasingly massive problem, and thanks to social media, politicians can no longer downplay it. The US government and individual states have set aside billions for the decommissioning of so-called "orphaned wells." For Zefiro Methane, this means that growth is secured for the coming years.

The latest figures show that the company, with a market capitalization of around CAD 68 million, is anything but expensive. According to these figures, Zefiro reported record revenue of approximately USD 33.2 million in the first nine months of fiscal year 2026 (ending March 31). This is a 36% increase over the same period last year. At the same time, Zefiro reduced operating expenses by more than 14%. This resulted in an adjusted EBITDA of USD 4.25 million.

Further growth is expected in the coming quarters. This is because the company acquired Viking Well Service's equipment for USD 4.3 million. Through this transaction, Zefiro is expanding its presence to a total of 13 US states and expects it to generate additional annual revenue of approximately USD 10 million. The subsidiary Plants & Goodwin also made significant progress. For instance, an infrastructure project in Louisiana with a volume of more than USD 5 million was completed three weeks ahead of schedule. In addition, the company is currently working on several major remediation projects for abandoned wells in Ohio and has already successfully conducted methane measurements at 849 wells in West Virginia.

Zefiro expects revenue of more than USD 40 million for the full year 2026. Key growth drivers are expected to include the integration of the Viking equipment, additional long-term contracts, and new government incentive programs for the remediation of abandoned oil and gas wells. At the same time, the company reports high demand in both existing and new markets.

This is plausible, as there are 2.2 million abandoned wells in the US alone. Over 1 million of these would need to be monitored—the estimated costs for monitoring and plugging range between USD 400 billion and USD 600 billion. As mentioned, Zefiro is currently valued at CAD 68 million.

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Nordex: New Plant

While Zefiro is just beginning to tap into a multi-billion-dollar niche with the monitoring and plugging of old oil and gas wells, Nordex has grown significantly in recent years and has already undergone a revaluation.

While the wind turbine manufacturer's stock is currently taking a breather, operations appear to be running smoothly. The company is continuing to drive its international expansion forward. This month, a new rotor blade production facility was commissioned in Menemen, Turkey, near Izmir. The site covers a total area of approximately 130,000 sqm, with about 90,000 sqm dedicated to production halls. According to the company, up to 1,200 rotor blades can be manufactured there annually at full capacity. The facility produces rotor blades for the N163 and N175 turbine models, which are primarily designed for medium- to high-wind sites. Initially, the plant will supply projects from the Turkish YEKA tenders, but exports to Europe are also planned for the future. Nordex employs around 1,200 people at the site.

According to Nordex, the expansion of local manufacturing capacity is intended to meet the growing demand for onshore wind turbines in Turkey while also fulfilling requirements for local value creation. The company has been active in the Turkish market since 2009 and considers itself the market leader there with a market share of around 34%.

At the same time, Nordex has also come into sharper political focus within European energy policy. Teresa Ribera, Executive Vice President of the European Commission, visited the company's headquarters in Hamburg. Discussions centred on the accelerated expansion of renewable energy, the electrification of the economy, and the role of wind energy in Europe's energy security. Ribera emphasized the importance of domestic renewable energy sources in reducing geopolitical dependencies. During the visit, Nordex highlighted its significance as a European manufacturer of onshore wind turbines and underscored the role of its global Technical Academies in training, quality assurance, and operations. According to the company, approximately 8,200 of its roughly 11,100 employees worldwide work in Europe.

Bloom Energy: 1,400% Not Enough?

One of the standout performers in the AI-energy hype is clearly Bloom Energy. The fuel cell specialist's stock has surged an incredible 1,400% over the past 52 weeks. In the past four weeks alone, it has climbed by about 31%, bringing the company's current market capitalization to USD 86 billion. Certainly no small figure for a company that aims to generate revenue of USD 3.4 billion to USD 3.8 billion this year. Earnings per share are expected to range from USD 1.85 to USD 2.25. The stock is currently trading at around USD 302.

But investors are not currently bothered by high valuations; instead, they are celebrating every piece of news. Most recently, Bloom Energy entered into a long-term partnership with AI cloud provider Nebius to support the expansion of AI infrastructure in the US. As part of the collaboration, Bloom Energy's fuel cell systems are set to power Nebius's new data center facilities. The first installation, with a planned capacity of 328 MW, is scheduled to go online later this year. According to the companies, the technology replaces the originally planned gas-based power generation and is intended to enable faster energy delivery for AI applications. The partners are relying on so-called "behind-the-meter" solutions, in which power is supplied directly on-site and is less dependent on the expansion of public grid infrastructure.

Bloom Energy also highlights the comparatively low emissions and minimal water consumption of its solid oxide fuel cells. Nebius sees the technology as a way to meet the rising energy demands of AI data centers with shorter lead times and a lower environmental impact. The partnership is initially focused on expanding Nebius's US infrastructure, but could later be expanded internationally, according to the company. Nebius is currently building a global platform for AI development and deployment and is expanding its data center capacities in the US and the EMEA region.

The Bottom Line

Bloom Energy and Nordex shares have performed strongly in recent months. Neither is a bargain anymore, but the momentum is there. In contrast, Zefiro appears to be a real bargain. The market is huge, and if the company were to secure just 1% of it, shareholders would likely see excellent returns.