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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: EODHD/Others/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: EODHD/Others/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.
