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The electric vehicle market is expected to boom with the Canadian government’s increased focus on promoting green businesses. With this push, green stocks in the automotive sector are likely to see an increased investment going forward.
Here are some stocks in the automotive sector that are likely to fetch solid returns while continuing their green practices:
©Kalkine Group 2021
- Greenpower Motor Company Inc. (TSXV:GPV)
Electric transit and school bus-maker Greenpower Motor Company has a market capitalization of C$ 457 million. The Vancouver-based company currently trades at C$21.90 as of June 9, 2021.
The current stock price is about 50 per cent lower than its 52-week high of C$ 43.62, which it touched on January 6, 2021.
Its shares have been on a rising trend in the last one year. The stock returned about 729 percent in the last one year, while the TSE 300 Composite Index, which is a bouquet of stocks from across the economy, rose 559.94 percent in the same period.
- Magna International Inc. (TSX:MG)
Vehicle component maker Magna International is one of the major automobile stocks to invest in the Canadian market. It operates in the North American and European markets, earnings a larger share of its revenues from the former.
The stock currently trades at C$ 118.49 as of June 9, 2021. This market price is about 5 percent lower than its 52-week high of C$ 126, which it hit on June 7, 2021.
The C$ 35.73 billion market cap company has returned about 87.30 percent in the last one year, while the S&P/TSX Auto Parts & Equipment (Sub Industry) Index has risen merely 1.42 percent in this period. The TSE 300 Composite Index grew 49.11 percent in the last year.
- Spectra Products Inc. (TSXV:SSA)
The junior automobile sector company manufactures safety and productivity enhancement products to bus and truck making companies. Apart from Canada, the company operates in the US and China.
As per TSX, the company has a market cap of C$ 3.47 million, and a price-to-earnings ratio of 4.30.
Spectra Products offers a price-to-book ratio of 2.25, and a 36.47 per cent return on equity.
- Lithium Americas Corp. (TSX:LAC)
Lithium mining company Lithium Americas is a green automobile stock, considering the use of lithium in powering electric vehicles. The C$ 2.26-billion company manages lithium mining operations in Argentina and Nevada.
The TSX stock trades at C$ 18.86 as of June 9, 2021. This price is at an about 47.4 per cent discount to its 52-week high of C$ 36.6.
The stock has returned 22.09 per cent in the year-to-date (YTD) period, while the TSE 300 Composite Index rose 6.07 percent YTD.
- Martinrea International Inc. (TSX:MRE)
Martinrea International sells its steel and aluminum parts to automobile makers largely located in North America. The Ontario-based company has a market cap of C$ 1.1 billion, as per TSX.
The automobile parts maker offers a quarterly dividend of 5 Canadian cents at a yield of 1.459 per cent.
Its total sales in the first quarter ended March 31, 2021 rose 14.3 per cent year-over-year (YoY), while its received new business awards amounting to nearly C$ 130 million during the first quarter.
- Exco Technologies Limited (TSX:XTC)
Exco Technologies, which operates in the casting and extrusion, and automotive solutions segment, and caters to automobile manufacturers and tier I suppliers. It primarily operates in the US market.
With a market capitalization of C$ 429.2 million, the stock currently trades at C$ 10.93 as of June 9, 2021.
Exco Technologies rose 18.42 percent to YTD, as against the S&P/TSX Auto Parts and Equipment (Sub Industry) Index, which declined 8.83 percent in the same period.
- NFI Group Inc. (TSX:NFI)
The Canadian automobile manufacturer makes profits through its production and after market operations. It is primarily involved in transit buses for public transportation, and motor coaches.
The stock trades at C$ 26.71, taking its market capitalization to about C$ 1.9 billion. The current stock price is about 19 per cent lower than its 52-week high of C$ 32.74, which it reached on January 18, 2021.
The stock rose about 39 per cent in the last year, against a 10.64 per cent rise in the TSE 300 Composite Index during the same period.
- Linamar Corporation (TSX:LNR)
Linamar Corporation is a Canada-based automobile component maker, earning revenues through its powertrain and driveline manufacturing for transportation companies, and industrial operations.
The stock, with a market capitalization of C$ 5.45 billion, currently trades at C$ 83.27 as of June 9, 2021. This price is 10.09 per cent C$ 91.98, which it touched on March 11, 2021.
It grew about 90.90 percent in the last one year. The player also offers a quarterly dividend of 16 Canadian cents, and a price-to-earnings ratio of 15.30.
9 Westsport Fuel Systems Inc. (TSX:WPRT)
The company primarily offers low-emission engine and fuel system technologies, and operates in the American, Asian, and European markets. It earns the largest chunk of its revenues from the latter.
Westsport Fuel Systems has a market capitalization of C$ 1.07 billion, and was trading at C$ 7.27 on June 9, 2021.
It offers a P/E ratio of 121.80 and has a P/B ratio of 7.817.
- Nio Inc. (NYSE:NIO, NIO.US)
Nio Inc is a premium electric vehicle manufacturer operating in China. The NYSE-listed company has a market capitalization of US$ 70.57
While its shares currently trade at US$ 43.07 as of June 9, 2021, its stock touched its 52-week high of US$ 66.99 on January 11, 2021.
The electric vehicle maker’s stock rose 629.65 per cent in the last one year, while the S&P 500 Automobile Manufacturers (Sub Industry) Index rose 487.24 per cent in the same period.
