AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- Small-cap stocks allow investors to capitalize on the developments seen in the early stage of an economic cycle.
- Enviva, a specialist in the promotion of sustainable wood bioenergy, reported an increase in net revenue by US$ 36.1 million during Q1 2023.
- TPG is a real estate company that reported US$ 3.8 million of net income attributable to common stockholders during Q1 2023.
In the US, small-cap companies have a market capitalization ranging from US$ 300 million to US$ 2 billion. Here, market capitalization refers to the fair market value of a company’s outstanding shares. These small-cap stocks become attractive to investors during the early stage of an economic cycle.
This refers to the expansion stage, wherein businesses are seeing an upswing. Sometimes, small cap stocks can also be a good investment choice during a recessionary phase. These stocks may help protect against recession.
On that note, here are two-small cap stocks that investors should glance at this earnings season:
Enviva Inc. (NYSE:EVA)
The company specializes in the promotion of sustainable wood bioenergy by producing sustainable wood pellets that are a good alternative to fossil fuels. The company has plants across Virginia, North Carolina, Mississippi, and many other states. However, the company’s customer base spans across the UK, Europe and even Japan.
Enviva reported its results for Q1 2023 on May 3, 2023, showcasing an increase in net revenue by US$ 36.1 million. The company’s net revenue in Q1 2023 was US$ 269.1 million, while that during Q1 2022 was US$ 233 million.
Image Source: © Krish Capital Pty. Ltd.; Data Source: Company Release
However, the company incurred a net loss of US$ 116.9 million. The adjusted EBITDA during the quarter was US$ 3.4 million, lower than its Q1 2022 adjusted EBITDA of US$ 36.6 million.
Despite the slow start to the year, Enviva expects to deliver an adjusted EBITDA ranging from US$ 200 million to US$ 250 million during 2023.
TPG RE Finance Trust, Inc. (NYSE:TRTX)
TPG is a real estate company that acquires, manages commercial mortgage loans and other commercial real estate-related debt instruments. The company primarily focuses on acquiring floating rate first mortgage loans. These loans are secured by commercial real estate properties that have the potential of value creation.
For the first quarter of 2023, the company reported US$ 3.8 million of net income attributable to common stockholders. This equaled US$ 0.05 per common share. During the Q1 2023 result announcement, TPG also announced a cash dividend of US$ 0.24 per share of common stock.
Image Source: © Krish Capital Pty. Ltd.; Data Source: Company Release
TPG also received a loan repayment of US$227.8 million during the quarter and ended the period with US$ 662.6 million of total liquidity.
