- The rising crude oil prices and ongoing power crunch call for electrification in the automobile sector and are likely to boost the electric vehicles (EV) businesses.
- One of the EV firms mentioned here yielded a dividend of 3.573 per cent.
- A company named below held a return on equity (ROE) of 19.59 per cent.
The rising crude oil prices and ongoing power crunch calls for electrification in the automobile sector and are likely to boost the electric vehicles (EV) businesses.
Plus, the increasing attempts of the corporate sector to hit their zero-emission targets is an additional factor that might bolster the demand for electric vehicles.
1. NFI Group Inc (TSX: NFI)
Stocks of Winnipeg-based electric mass solution provider NFI Group Inc fell by 2.018 per cent to C$ 23.79 apiece at market close on Wednesday, October 27. It also slipped by more than 27 per cent from the 52-week high of C$ 32.74 reached on January 18, 2021.
In the previous nine months, NFI stock plunged by nearly 19 per cent and marked a year-to-date (YTD) decline of more than a per cent.
However, its one-year return was up by more than 50 per cent. Its dividend yield, on the other hand, stood at 3.573 per cent.
Since 1969, NFI Group has been manufacturing electric vehicles such as single and double-deck heavy-duty transit, motor coaches, etc. In addition, it also claims to offer zero-emission battery-electric and fuel cell electric buses and coaches.
2. Magna International Inc (TSX: MG)
Automobile supplier Magna International Inc, which also provides electronic and electric vehicles systems, saw its scrip wrap up trade at C$ 98.24 per share, down by 0.667 per cent, on October 27.
Image source: © 2021 Kalkine Media Inc
At this market close, MG scrip had declined by about 22 per cent from the one-year high of C$ 126 on June 7, 2021. It had also slumped by more than four per cent in the past three months and descended by more than 19 per cent in the previous six months.
However, its one-year return was nearly 42 per cent, while its nine-month gain was approximately 10 per cent.
Magna, headquartered in Aurora, updated its 2021 outlook on October 20, which reflected a sales guidance in the range of C$ $35.4 billion to C$36.4 billion. This was down from the August outlook of C$ 38 billion to C$ 39.5 billion due to lower light vehicles production.
3. Martinrea International Inc (TSX: MRE)
Canadian automotive parts producer Martinrea International Inc, which supplies steel, aluminium and fluid systems, saw its stock hit a day high of C$ 11.2 apiece before closing at C$ 11.03, down by 1.518 per cent, on October 27.
MRE stock plummeted by more than 32 per cent from the 52-week high of C$ 16.27 hit on January 8, 2021. It decreased by about 20 per cent over the last nine months.
However, it gained nearly three per cent in the past year.
Martinrea, in the second quarter of fiscal 2021, posted a YoY increase of 92.1 per cent in its total sales of C$ 884.9 million.
As of October 28, it held an ROE of 13.39 per cent and a dividend yield of 1.813 per cent.
Also read: 3 Canadian growth stocks to buy in November
Investors should consider that electric vehicles may be the future of the automobile sector and any investment in this emerging industry could rake in benefits.
However, proper research on the company, its fundamentals, financials, plans and strategies are also important aspects that will help understand the risk-return surrounding that particular stock.