Greenlane Renewables (GRN) Graduates To TSX: To Buy Or Not To Buy?

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Greenlane Renewables (GRN) Graduates To TSX: To Buy Or Not To Buy?

 Greenlane Renewables (GRN) Graduates To TSX: To Buy Or Not To Buy?

Source: Robert Lucian Crusitu, Shutterstock

Summary

  • Earlier this month, the biogas upgrading systems provider leveled up to the Toronto Stock Exchange.
  • Greenlane stock recorded an all-time high last month, hitting a closing price of C$ 2.86 on February 17.
  • Greenlane recorded a 30 per cent year-over-year (YoY) jump in its Q3 2020 revenue of C$ 6.5 million.

Canadian green energy company Greenlane Renewables Inc (TSX:GRN) is no longer a small player from the junior platform of Toronto Stock Exchange Venture. Earlier this month, the biogas upgrading systems provider leveled up to the Toronto Stock Exchange.

Its stock recorded an all-time high last month, hitting a closing price of C$ 2.86 on February 17. Although is has since slipped, Greenlane shares still post a growth of 427 per cent from last year and price-to-earnings* ratio of 43.2.

So, where does the newly graduated Greenlane stock stand in terms of investment? Let’s find out.

 

Greenlane Renewables Inc (TSX:GRN)


While it was still a member of the TSXV family in February, Greenlane Renewables was named in the 2021 Venture 50 list that showcases TSXV’s top annual performers.

On the financial front, Greenlane recorded a 30 per cent year-over-year (YoY) jump in its Q3 2020 revenue of C$ 6.5 million. Its net income for the quarter ending 30 September 2020 stood at C$ 0.7 million, which as notable change from the net loss of C$ 1.8 million in Q3 2019.

Greenlane’s sales order backlog ballooned by 350 per cent YoY to C$ 43.8 million, while its sales pipeline valued at over C$ 690 million in the third quarter. After markets close on Thursday, the Vancouver-based company is expected to reveal its 2020 annual and Q4 numbers.

©Kalkine Group 2021

 

Earlier in February, Greenlane Renewables, via its subsidiary Greenlane Biogas North America, bagged two major contracts worth C$ 3.6 million for new renewable natural gas projects. While one of the deals include a project in the Midwest US, the other is a Brazilian contract that marks Greenlane’s fifth contract win for biogas upgrading equipment supply in the country.

 

The Renewable Sector & Its Future


The renewable power and technology sector is on the rise amid growing awareness in global governments, expanding demand and evolving laws. While the Canadian government has been on this journey for a while now, the new Democratic government in the US is also one committed to this dream. At the same time, the increasing sales numbers in the electric vehicle industry reflects a rising number of people who are looking into switching to cleaner, eco-friendly options.

Such factors put green companies like Greenlane Renewables in the space for a likely increase in demand.

©Kalkine Group 2021

 

With over three decades of experience under its belt, Greenlane focuses on producing clean and low-carbon renewable natural gas from organic waste sources through the process of decarbonization. It also claims to be the only enterprise in its sphere that offers technologies such as water wash, membrane separation and pressure swing adsorption.

 

*as per TMX

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

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