Top Canadian Cleantech Stocks of 2020
Interested in the top Canadian cleantech stocks? Here are the five biggest gainers of the year so far on the TSX and TSXV.
Click here to read the previous top Canadian cleantech stocks article.
In 2020, the unexpected COVID-19 pandemic has impacted all sectors and levels of society, with lockdowns and physical distancing becoming the new normal.
For cleantech companies, the impact of the coronavirus on supply chains has hit production and sales — but many have been able to post positive revenues for the second quarter.
As the second half of 2020 kicks off, here the Investing News Network shares the top Canadian cleantech stocks year-to-date listed on the TSX and TSXV.
All companies had market caps of C$10 million to C$500 million as of July 13, 2020. Numbers and figures were current at that time, with data from TMX Money’s stock screener. Only companies listed in the technology sector under industrials are included.
1. Electrovaya (TSX:EFL)
Year-to-date gain: 184.21 percent; current share price: C$0.54
Headquartered in Ontario, Canada, Electrovaya designs, develops and manufactures proprietary lithium-ion batteries, battery systems and battery-related products for energy storage, clean electric transportation and other specialized applications.
Supply chain disruptions due to the coronavirus pandemic did not prevent Electrovaya from posting US$1.9 million in revenue in Q2 — more than double the revenue it generated in the previous quarter — amid strong demand from customers in essential industries. However, pandemic-related challenges prevented the company from generating positive EBITDA for the quarter.
2. Eguana Technologies (TSXV:EGT)
Year-to-date gain: 133.33 percent; current share price: C$0.14
Calgary-based Eguana Technologies designs and manufactures high-performance residential and commercial energy storage systems. This top Canadian cleantech stock provides grid-edge power electronics for fuel cell, photovoltaic and battery applications, and delivers proven, durable, high-quality solutions from its high-capacity manufacturing facilities in Europe and North America.
Eguana also faced COVID-19-related supply chain challenges throughout the first half of the year. However, in Q2 the company was able to post the second highest revenue quarter in its history. Year-to-date revenue for Eguana stands at $4.44 million, a 143 percent increase compared to the prior year.
3. Legend Power Systems (TSXV:LPS)
Year-to-date gain: 121.05 percent; current share price: C$0.42
Legend Power Systems, another of the top Canadian cleantech stocks, is focused on onsite energy management technology. The company helps buildings overcome grid volatility challenges common to utilities around the world. Legend’s SmartGATE technology enables dynamic power management for entire buildings. The proprietary and patented system reduces total energy consumption and power costs, while also maximizing the life of electrical equipment.
The company’s sales have taken a hit due to the coronavirus, and that was reflected in its revenues for the second quarter. Legend Power Systems reported revenue of $676,000, down 12 percent year-over-year from $769,000 reported in Q2 2019. In response to COVID-19, on April 1, management implemented a proactive cost-reduction and continuity plan.
“This together with receipt of various government subsidies and a significant inflow of funds from customer receivables has significantly shored up our working capital. I am very pleased to report that subsequent to quarter end we are seeing some sectors of our business reopen and our sales activities have re-started,” said Legend Power Systems CEO Randy Buchamer.
4. Xebec Adsorption (TSXV:XBC)
Year-to-date gain: 85.90 percent; current share price: C$4.35
Xebec Adsorption is a manufacturer of biogas purification systems with distribution across Asia, Europe and North America. The company operates production facilities in both Quebec and China. Across its portfolio of products are biogas, hydrogen, gas and natural gas filtration systems. The company’s vision is to provide sustainable solutions that transform gas products into renewable energy.
Xebec has not released its Q2 results yet, but in its first quarter financials, the company reported revenues of $12.2 million compared to $9.8 million for the same period in 2019, a 24 percent increase. The increase is mainly explained by the higher volume of major cleantech contracts and revenue from an acquisition in California completed in December of last year.
5. BQE Water (TSXV:BQE)
Year-to-date gain: 62.86 percent; current share price: C$14.25
BQE Water is a service provider specializing in water treatment and management for metals mining, smelting and refining. BQE Water invests in innovation and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world.
The company’s operational services consist of the operation of water treatment plants, which generate recurring revenues from two main sources: sales of recovered metals and water treatment fees.
BQE Water achieved positive first quarter adjusted EBITDA for the first time in its history, at $91,000 compared to negative $80,000 in Q1 2019. This top Canadian cleantech stock also posted proportional revenues of $2.4 million compared to $2.1 million in the year-ago period.
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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.