Green, renewable energies have gone from being a utopia to one of the most profitable proposals in the equity markets. Not that they are the future on international stock exchangesIf not, on the contrary, they are already the present, as has been seen in this year that is about to end. It has gone from being a residual investment to become the true protagonist of many investor portfolios in the medium and long term. Where the fight against climate change can be profitable from now on.
The clean energy sector has already been on the radar of a good part of the small and medium-sized investors and this trend may be strengthened in 2020. With the appearance of nuevas empresas integrated into this thriving sector that have begun to start trading on equity markets around the world. While on the other hand, some of the most prestigious listed companies on the Ibex 35 have decided to turn their eyes to the clean energy sector. As a business opportunity that opens in this new stock market year that we are about to start.
Traditional sectors in equity markets are on the defensive against what may happen to renewables. And many times the business in the stock market is in favor to go in trend. To the point that at the moment they have a very relevant revaluation potential and in most cases below double digits. In what constitutes a clear investment strategy to make the available capital profitable from these precise moments. The novelty may be more interesting to invest in than the more traditional or conventional companies that are included in the selective index of equities in our country.
Listed renewables
Grenergy, Audax, Solaria and Solarpack are the most representative stocks in this sector on the Spanish stock market. But with the additional value that they have ended 2019 with their positive revaluation, and in some very specific cases with a very significant appreciation in their valuation. Although according to a recent report by the US bank Goldman Sachs, between 70% and 80% of new renewable energy producers they are medium or small size. In other words, they are not yet large companies nor are they listed on the Ibex 35. But their exponential growth may be very important from this moment on and for investment in the coming years.
These are small and mid-cap companies that are generally guided by the expectations they create in financial markets rather than the reality of their business accounts. From this perspective, they have a very significant revaluation potential, which in most cases exceeds levels above 10%. Although if you are in the investment portfolio of the large brokers or financial intermediaries. In any case, they are not included in the selective index of national variable income, the Ibex 35. If not, on the contrary, they are listed on the national continuous market like a good part of the listed companies in our country. With a future that promises very exciting for small and medium investors.
Companies targeting renewables
In any case, there are large Ibex 35 companies that are also opting for this line of business. Where a good part of the electricity companies and Acciona stand out and what is causing them to push their prices up. With a significant appreciation in recent months as a result of its firm commitment to renewable energies and that it is providing a new incentive to take positions in this class of values that are on the rise with respect to the interest on the part of small and medium investors. In what is configured as a new trend at the time of selecting the securities that will make up our next investment portfolio.
In this sense, the case of the electricity company Endesa, through its renewable subsidiary Enel Green Power Spain, and Prodiel have signed an agreement whereby Endesa acquires 100% of the capital of 13 companies that are holders of photovoltaic projects in Spain, worth 36 million euros. In addition, the agreement reached by the two companies also includes the signing of contracts by which Prodiel will be responsible for the provision of co-development services for these projects, for an amount of 65 million euros, which also include local taxes for construction and payment of network connection costs.
Green energy is trading higher
It should be noted that these companies that are listed on the equity markets follow a renewable facility development model that incorporates actions to create social value for the environments in which they are built. So that in this way, they create value on the stock market from now on and that is after all one of their most immediate objectives. To the point that its target prices are rising in the recommendations made by the most important analysts of the equity markets. Due to the higher value it has on the stock market for the next few years where the so-called green energy will be implemented.
While on the other hand, it is also necessary to indicate the fact that these values do not show excessive volatility in the configuration of their prices. If not, on the contrary, they are among the most stable in the stock market, not only in Spain but in the whole world. To the point that these values are considered as the great bet for the not too distant future and where they can trade at levels much higher than those found at the moment. Beyond the possible corrections that may develop in the coming years as it is logical to think. Because we cannot forget that we are talking about the stock market and not about other financial markets.
The incidence of the electric car
On the other hand, we cannot forget that the technology of the facilities to be placed will be up to 50 kW, which allows a vehicle to be charged in approximately half an hour (depending on the vehicle's previous load percentage and its characteristics), the time that customers usually take to make the purchase. With a clear incidence of the electric car in this class of companies that have clearly opted for this type of energy for cars. From this point of view, we can choose some of these values in order to make the savings profitable from now on. With high expectations in setting prices.
It is also very important to emphasize that this kind of investment can be very profitable in the medium and long term. Where they can be revalued with very striking percentages and in any case above those generated by the more conventional or traditional listed companies. From this point of view these values are more a buy than a hold and in some cases in a very aggressive way. With the additional advantage that some of these companies distribute an interesting dividend among their shareholders.
With an interest rate above 5%, which is very interesting when the price of money is at an all-time low, at 0%. It is a great investment strategy to create a more or less stable savings bag. Not surprisingly, its equation between risk and return presents very interesting ratios to take into account from now on. Without having to take the positions that can be taken in the values that are closely linked to renewable or green energy.
Solaria the leader in the sector
In the first nine months of the year, Solaria, has maintained its growth, improving their income by 2.4%, up to 30,3 million euros and its EBITDA (23,43 million euros) 1,5% thanks to the good operating performance of all plants. In this sense, it should be noted that “lThe company's operating performance continues to be very solid, says the president of Solaria, Enrique Díaz-Tejeiro. Installing 285MW so far this year and multiplying our installed capacity by five is a great success."
While on the other hand, and additionally, Solaria has signed a long-term financing agreement with Banco Sabadell for four photovoltaic plants with a total power of 108.5MW corresponding to the PPA power purchase contracts signed with Repsol. To a degree that can attract new investors and that as a result of this action can be seen in its valuation on the stock market in 2020.