2 Green Stocks To Buy As Canada Increases 2030 Emissions Target - Kalkine Media

April 26, 2021 12:24 PM EDT | By Team Kalkine Media
Follow us on Google News:

Last week, Prime Minister Justin Trudeau said that Canada will aim to reduce its greenhouse gas emissions (GHG) by as much as 45 per cent by year 2030. He made this announcement this while participating virtually at a climate change summit of global leaders convened by US President Joe Biden.

With the Trudeau government concentrating on building a “sustainable” economy, an increasing number of Canadian companies are shifting their focus to green tech and power. On that note, let's take a look at the stocks of two trending green stocks – Capital Power Corporation (TSX:CPX) and Magna International Inc (TSX:MG). 

Capital Power Corporation (TSX:CPX)

The Alberta-based company is powering a low-carbon energy future and aims to achieve net carbon neutrality by 2050. It has a market cap of over C$ 4 billion and holds a price-to-cash flow (P/CF) ratio of 6.6, based on the data of TMX

On April 19, Capital Power Corporation partnered with Labatt to advance beer company Budweiser’s 100 per cent renewable electricity commitment.

1-year chart of stock performance of Capital Power (Source: Refinitiv/Thomson Reuters)

Capital Power stock surged by about 44 per cent in the last year and outperformed the TSX 300 Composite Index, which grew by about seven per cent during the same period. Its year-to-date (YTD) growth stands at nearly nine per cent.

Capital Power distributes a C$ 0.512 dividend on a quarterly basis. In 2020, the company's revenue increased to C$ 1,791 million from C$ 1,713 million in 2019. During the same period, the diluted earnings per share increased to C$ 0.77 from C$ 0.72.

Magna International Inc (TSX:MG)


Canadian automotive supplier Magna International is increasing its presence in the electric vehicles (EVs) market. The company's recent product, Magna EtelligentEco system, is said have the capacity to cut down emissions by as much as 38 per cent.

Magna's price-to-book (P/B) ratio is 2.563 and it offers a 6.54 per cent return on equity (ROE), as per TMX. Its debt-to-equity (D/E) ratio is 0.53.

1-year chart of stock performance of Magna (Source: Refinitiv/Thomson Reuters)

Magna stock’s one-month growth is nearly 12 per cent. In the last one year, it witnessed a surge of 151 per cent.

Magna distributes a quarterly dividend of US$ 0.43. In the last five years, its dividend grew by 15.27 per cent.

In Q4 2020, the EV company’s sales increased by 12 per cent year-over-year (YoY) to US$ 10.6 billion. Its cash from operating activities increased to US$ 2.3 billion from US$ 1.7 billion.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.



Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK