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When it comes to commodities, most investors are on the lookout for gold, oil and gas, and copper. The rising scarcity of fresh water, which needs substantial infrastructure and capital allocation, is going unnoticed globally.
Water accounts for almost 71 per cent of the earth's surface area. At present, there is 326 million cubic miles of water on the planet, but around 3 per cent of that volume is drinkable, according to the Bureau of Reclamation California-Great Basin.
Fundamentally, water is an essential commodity, making it more precious than gold.
As we celebrate World Water Day 2021, here are three Canadian water stocks to look at:
Global Water Resources Inc. (TSX:GWR)
The company provides an end-to-end water management system to conserve and recycle water. It is worth almost C$ 490 million in market capitalization. The shares closed at C$ 21.69 apiece on Friday, March 19.
The stock has increased by 49.62 per cent in the past one year, outpacing the S&P TSX Utilities Index that has risen 16.34 per cent relatively. It is up 61.62 per cent from its 52-week low of C$ 13.42 piece recorded on June 26, 2020.
The company posted total revenues of US$ 38.6 million in 2020, an increase of 8.9 per cent year-over-year (YoY). It also paid dividends of US$ 0.29 per common share last year.
H2O Innovation Inc. (TSXV:HEO)
This firm offers water treatment solutions through its membrane filtration technology. Its market cap is C$ 223 million, and the stock was priced at C$ 2.77 at market close on Friday.
It has an interesting growth of 361 per cent in one year, surpassing the benchmark index that is up 198 per cent in the past one year.
The company registered a top line of C$ 35 million in the second fiscal quarter of 2021, a rise of 4.9 per cent YoY.
Image Source: Pixabay.com
BluMetric Environmental Inc. (TSXV:BLM)
The water waste management company offers pre-engineered and design-build solutions to treat wastewater. The micro-cap stock is currently trading at C$ 0.42 per piece.
It has delivered an eye-popping one-year return of 460 per cent. It is also up 127 per cent this year.
The stock has skyrocketed by 500 per cent versus its 52-week low of C$ 0.070 per share on March 26, 2020. Investors could buy this stock now for future benefits.
In the first quarter of 2021, the company’s revenue was C$ 8.2 million, up against C$ 6.3 million for Q1 2020.
