AUS
NZ
UK
CA
USA
IND
Summary
- Just Energy (TSX:JE) and Sunworks stocks (SUNW:US or NASDAQ: SUNW) rallied in the markets on Thursday.
- Just Energy stocks jumped over 120 per cent in the last five trading sessions.
- Sunworks stocks are currently up by over 450 percent month-to-date.
Just Energy Group (TSX:JE) emerged as the biggest market mover on the Toronto Stock Exchange in volume parameters on Thursday. The stocks jumped over 114 per cent during intraday trading. American firm Sunworks (SUNW:US or NASDAQ: SUNW) also trended big in the Canadian markets, after the stocks surged nearly 239 per cent in a day.
Some of the other stocks that rallied in the intraday trade are Kinross Gold (TSX:K), Zenabis Global (TSX:ZENA) and Bombardier (TSX:BBD.B). The TSX Composite index gained 0.601 per cent to close at 15,912.26. Metals and mining and industrial sectors emerged as the top gainers.
In this article, we a look at the stocks of Just Energy and Sunworks and recent market performance.
Just Energy Group Inc. (TSX:JE)
Sector: Utilities
Current JE Stock Price: C$ 0.74
Stocks of utilities firm Just Energy witnessed high trade volume activities on the Toronto Stock Exchange this week. Its last 10-day average share trading volume is over eight million. Its current market capitalization is C$ 112.2 million and return on asset is 2.54 per cent, as per data on the Toronto Stock Exchange.
At the start of this year, Just Energy shares were trading around C$ 72. Beaten by the volatility in energy industry and the ongoing pandemic, the stocks have been in a free fall throughout 2020. The downtrodden stocks lost nearly 100 per cent value year-to-date (YTD). In the last three months alone, the scrips declined by 98 per cent.
However, over the past four days, the stocks witnessed high volumes of trading activity, indicating investors’ interest in the organization. Just Energy stocks jumped over 120 per cent in the last five trading sessions.
Just Energy business operations are spread across the United States and Canada. It focuses on three aspects:
- Essential consumer needs, which includes electricity, natural gas
- Health and well-being, which included developing water quality and filtration devices
- Utility conservation, which focuses on renewable energy options and energy efficient solutions.
The company owns Amigo Energy, Tara Energy, Hudson Energy, EdgePower Inc, Interactive Energy Group, Filter Group Inc, and TerraPass.
The company’s gross margin in Q1 Fiscal 2021 (ending June 30, 2020) grew to C$ 0.14 million, up from C$ 0.13 million same quarter a year ago. Profit stood at C$ 79,150 in Q1 FY21, up from a loss of C$ 275,160 in Q1 FY20.The base EBITDA grew 67 per cent year-over-year to C$ 40.5 million in its latest quarter.
However, the energy company’s businesses were impacted by COVID-19, leading to an 11 per cent downfall in sales in Q1 FY21.
JE stocks surged +114 per cent to C$ 0.74 in Thursday’s trading session.
Sunworks Inc. (SUNW:US or NASDAQ: SUNW)
Sector: Technology (Semiconductors)
Current SUNW stock price: C$ 3.93
Stocks of American solar energy company Sunworks has set the markets on fire this week. The stocks have surged over 350 per cent in last four trading sessions. Scrips of the The micro-cap company are currently up by over 450 percent month-to-date and 214 per cent year-to-date.
Investors are eyeing the cleantech space amid the worldwide push for cleaner energy and renewable power sources. Increasingly, more governments are adopting policies inclined towards alternate energy. Earlier this week, US state California banned gasoline and diesel vehicles, effective from 2035. Meanwhile, Canadian Prime Minister Justin Trudeau harped on making climate change and green industry a “cornerstone” of the country’s economy in his recent throne speech. Canada is eyeing zero-carbon emission economy by 2050. Consumers, too, are evolving and want to embrace environmental-friendly initiatives.
Under these circumstances, businesses with focus on green and clean energy are coming into the limelight.
Sunworks’ has 30 years of experience in the solar industry. Its business focuses on three customer segments:
- Agricultural, commercial and industrial
- Residential houses
- Government facilities
In its second quarter 2020 earnings report, Sunworks reported US$ 9.67 million in revenue, down from nearly US$ 18.6million in the same quarter last year. Gross profit slumped to US$ 1.65 million in the latest quarter from US$ 3.6 million same quarter last year.
Sunworks recently announced merger with solar construction Peck Holdings (NASDAQ:PECK), a solar engineering, procurement and construction (EPC) company. The merger will create a national player with a coast-to-coast presence in American markets, with “pro forma” revenue of US$ 88 million (based on 2019 figures). The deal is expected to close in Q4 2020.
The company’s current market capitalization is C$ 65 million, price-to-book ratio is 2.5 and price-to-cash flow ratio is 65.8, as per data on the TSX.
