4 Canadian Sustainability Stocks Trading at a Discount

    The Canadian sustainability stocks on our list trade at industry-low EV/EBITDA multiples

    SmallCapPower | February 15, 2018: Demand for sustainable goods and services, such as electric cars and solar panels, continues to rise, driven by the ongoing concern over air pollution. Today we’ve identified four Canadian sustainability stocks trading at an average forward EV/EBITDA of 7.5x, lower than the peer average of 11.8x. These names could appeal to value investors.

    Carmanah Technologies Corp. (TSX:CMH) – $4.25
    Electrical Components & Equipment

    Carmanah Technologies is a Canada-based solar company. The Company provides solar signaling and solar lighting solutions, such as solar-powered lampposts, beacons, and ID marking for wind farms. The Company plans to complete its machine-to-machine connectivity network in three years and double its partner network within five years.

    • Market Cap: $80.5 Million
    • YTD Total Return: -8.6%
    • Enterprise Value to EBITDA: 7.7x
    • Forward Enterprise Value to EBITDA FY2018: 4.6x

    Napec Inc. (TSX:NPC) – $1.94
    Construction & Engineering

    Napec is a Canada-based construction company focused in the energy sector. The Company specializes in the construction and maintenance of electrical transmission and distribution lines to solar panel farms and natural gas networks. The Company also provides heavy equipment installation, environmental construction and road matting services.

    • Market Cap: $204.9 Million
    • YTD Total Return: -0.3%
    • Enterprise Value to EBITDA: 9.3x
    • Forward Enterprise Value to EBITDA FY2018: 7.3x

    Newalta Corp.  (TSX:NAL) – $0.97
    Environmental Services & Equipment

    Newalta is a Canada-based environmental services company operating in the energy sector. The Company conducts waste treatment, water disposal, clean oil extraction and other treatment services for oilfields and heavy oil. The Company operates on-site and across 43 facilities in Canada and the US.

    • Market Cap: $85.5 Million
    • YTD Total Return: -4.0%
    • Enterprise Value to EBITDA: 9.6x
    • Forward Enterprise Value to EBITDA FY2018: 7.7x

    PyroGenesis Canada Inc.  (TSXV:PYR) – $0.62
    Environmental Services & Equipment

    PyroGenesis focuses on the commercialization of plasma technology. Through R&D and manufacturing, the Company provides innovative solutions to the defense, metallurgical, mining, 3D printing and environmental industries. Currently, PyroGenesis’ main focus is the manufacturing of additives, which serve as a raw material for 3D printing.

    • Market Cap: $76.7 Million
    • YTD Total Return: -1.6%
    • Enterprise Value to EBITDA: N/A
    • Forward Enterprise Value to EBITDA FY2018: 10.5x

    Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.

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