- The rising awareness to reduce carbon emissions worldwide is creating an opportunity for the electric vehicle (EV) industry to grow
- The oil and gas price volatility can serve as an added advantage for the EV segment.
- A Canadian EV stocks pays a quarterly dividend of C$ 0.21 apiece.
The demand for electric vehicles (EV) appears to have swelled amid the rising price of oil and other commodities.
Fluctuation in fuel prices can hurt the pockets of car owners. This can draw some to electric cars, which have no use of oil or gas. Moreover, the rising need to adhere to emission level restrictions to cut down on pollution has also helped the EV industry grow.
Many auto companies, including those known to manufacture gasoline-powered cars, are now exploring the EV industry for long-term sustainable solutions.
This expanding popularity has drawn quite a few investors to explore EV stock options. So on that note, here are few Canadian EV stocks that are available for less than C$ 50.
- GreenPower Motor Company Inc (TSXV: GPV)
GreenPower Motor Company is a manufacturer of electric school, transit and city buses. It also deploys battery technologies to all of these electric buses.
GreenPower Motor held a market cap of C$ 368 million and 21.5 million outstanding shares on August 17, 2021, when its stocks closed at at C$ 17.11.
At this closing price, GPV scrip was trading roughly 59 per cent below its 52-week high of C$ 43.62 (January 6, 2021) and 108 per cent above its 52-week low of C$ 8.54 (August 18, 2020).
GreenPower Motor Company posted a revenue of US$ 2.65 million in the first quarter of fiscal 2022, up from that of US$ 2.27 million in Q1 FY21 by 17 per cent year-over-year (YoY). Its cash expenses decreased by three per cent to US$ 1.9 million on a quarter-on-quarter basis in Q1 FY22.
On the valuation front, GreenPower held a price-to-book (P/B) ratio of 7.9 and a debt-to-equity (D/E) ratio of 0.03.
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- NFI Group Inc (TSX: NFI)
This Canadian automobile company operates under the business segments of manufacturing and aftermarket operations.
NFI stock price closed at C$ 30.4 on August 17, trading nearly 103 per cent above its 52-week low of C$ 14.97 (October 30, 2020).
In the past year, the EV stock surged by 86 per cent. It increased by 26 per cent on a year-to-date basis.
NFI Group posted a revenue of US$ 583 million in Q2 FY21, up by 75 per cent YoY. Its adjusted EBITDA stood at US$ 52 million, and its net earnings were US$ 3 million in the latest quarter.
Its P/B ratio stood at 2.1, and D/E ratio was 1.37
- Lion Electric Company (TSX: LEV)
The C$ 3-million market cap company manufacturers zero-emission vehicles ranging from trucks, minibusses and all-electric buses.
Stocks of this EV company were trading at C$ 16 on August 17, nearly 44 per cent below their 52-week high of C$ 28.39 (June 8, 2021).
Lion Electric posted a revenue of US$ 16.7 million in Q2 FY21, up by US$ 10.6 million from US$ 6.1 million in Q2 FY20. It also incurred a net loss of US$ 178.5 million in the latest quarter.
It delivered a total of 61 vehicles in Q2 FY21, increasing from 22 vehicles in Q2 FY20.
- Ballard Power System Inc (TSX: BLDP)
Canadian company Ballard Power System focuses on clean energy through the manufacture and development of fuel cells that are used in buses and other processes.
BDLP stock closed at a value of C$ 18.6 on August 17, trading about 22 per cent above its 52-week low of C$ 15.5 (May 11, 2021). The scrip witnessed a price drop of some 16 per cent in the last nine months and a YTD decline about 37 per cent.
Ballard Power posted a total revenue of US$ 25 million in Q2 FY21, down by three per cent YoY. Its net loss was US$ 21.9 million in the same quarter.
On the valuation front, Ballard held a P/B ratio of 3.18 and a D/E ratio of 0.01 on August 17.
Some industry experts believe that an expanded usage of electric vehicles can help in reducing the greenhouse gas (GHG) emission levels across the world. It can also assist in promoting other clean energy practices. However, EVs are known to be comparatively pricier than gas-powered cars, making it unappealing to a large crowd.
As more companies work on coming up with affordable EVs and expanding the easy availability of charging stations, the EV industry could see a larger growth in the future.