- Ballard stocks (TSX: BLDP) rose by 200 per cent in last one year.
- Boralex entered a 30-year agreement to supply wind power to Quebec from its Apuiat Project.
- S&P Global Ratings agency upgrades ranking for Innergex.
As consumption of fossil fuel wanes, three Canadian renewable stocks could be the trailblazers towards a sustainable green future.
Ballard Power Systems Inc. (TSX: BLDP), Boralex Inc. (TSX: BLX), and Innergex Renewable Energy Inc. (TSX: INE) have been among the top volume movers in the energy sector.
At the previous close, some 2.9 million Ballard stocks swapped hands, and 396,851 Boralex shares and 322,516 Innergex shares were traded.
While these volumes may still seem dwarfed compared to their large-cap peers in the traditional energy space, their modest gains over the past weeks indicate investors’ growing faith in them.
But surely, green stocks have made a strong comeback and they are going to stay. They would be the next hot stocks as this great gamble of energy transition is being rolled out on the global stage.
A breakdown of different performance metrics of these companies could perhaps help understand why they have been trending and what the future of these companies holds.
Ballard Power Systems Inc. (TSX: BLDP)
This Canadian zero-emission fuel-cell company designs products for various end-users, including buses, trucks, trains, marine vessels, and passenger cars, among others. Its key markets are China, Japan, Germany, Belgium, Denmark, and the UK.
Ballard stocks were traded at C$45.18 on Wednesday. It is considered one of the top price performers across the Toronto Stock Exchange (TSX) and the TSX Venture.
Ballard stocks have registered an annual growth of 200 per cent.
In the past month, its value rose by 22 per cent, and more than 100 per cent in the last three months, indicating a strong price momentum.
In terms of volume, its 10-day and 30-day average was 1.2 million and 1.4 million, respectively.
The company also has a positive D/E ratio of 0.04, which makes it almost debt-free.
Ballard has a market cap of C$12 billion. It will present its Q4 results for fiscal 2020 on March 11, 2021.
In February, it had announced a joint venture to produce hydrogen fuel-cell engines in collaboration with Chart Industries, Inc. (NYSE: GTLS).
The company had also signed an agreement with an underwriters’ syndicate to purchase some 9.4 million common shares of the company with a provision for additional shares.
It is expected to raise US$52.5 million from the exercise.
Boralex Inc. (TSX: BLX)
Boralex Inc. is another Canadian company involved in the renewable power generation business, with a portfolio of diverse electricity plants in the US and Canada.
Its stocks were trading at C$48.47 on Wednesday. In the past three months, the stock value rose by more than 25 per cent. And over the past year, it grew by more than 50 per cent.
This growth was complemented by trade volumes. The 10-day and 30-day average were 429,782 and 531,002.
Boralex has a market cap of C$4.9 billion, while its D/E ratio is slightly on the upper side at 3.23, and the P/CF ratio is 13.00. The company will announce its Q4 results of 2020 on February 25, 2021.
The company had recently signed an agreement with the Quebec provincial government to supply wind power from the Apuiat Wind Project in Quebec’s Innu Nation. The cost of electricity would be 17 per cent less than the electricity generated in 2018 from traditional sources.
In February, Boralex had executed a deal to purchase seven solar plants in the US for C$277 million. The plants have a total installed capacity of 209 megawatts.
Innergex Renewable Energy Inc. (TSX:INE)
Innergex operates hydroelectric, wind, and solar power plants in Canada, the US, France, and Chile. It is also one of the leading players in the renewable sector. The company generates a significant amount of its revenue from wind farms.
Innergex shares were priced at C$29.01 on Wednesday. The share value rose by 24 per cent in the past three months and around 30 per cent in the last 12 months.
The 10-day and 30-day share volumes were 625,813 and 651,418, respectively. Innergex has a market cap of C$5 billion. The D/E ratio is 5,17 and the P/CF ratio is 20.50.
In Q3 ending September 30, 2020, it reported revenue growth of 14 per cent to C$213.7, compared to the same period a year ago. The adjusted EBITDA was up 6 per cent to C$151.4.
In December 2020, the S&P Global rating agency had given a rating of BB+ for the company.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.