In the past week, the Nordic impact sectors had another well performing week. Only Food & Beverages delivered a negative return, as fish farm companies were hit. We take a closer look at the Waste Management sector with companies turning trash to cash. The best stock rose almost 50% after giving update on potential deal with OKQ8.
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The Mobility sector performed the best in the past week with a 11% increase helped by strong performance from Move About Group AB. Food & Beverages was the only sector with a negative return in the past week, as the fish farm comapnies in the sector were hit: Proximar Seafood AS (-20%), Atlantic Sapphire ASA (-10%), and Kingfish Company NV (-8%).
Overview of the performance of each sector the past week
Top 10 best performing impact stocks of the week
In the past week, Move About Group AB, a carpool sharing platform, was the best-performing overall stock rising 50% after an update about their LOI with OKQ8 (Link). Energeia ASA, a solar energy company, came second with a 45% increase following announcement of the Q3 earnings as well as a solar project in Norway. SaltX Technology AB, a energy storage company using salt, was in the top 10 for the second week in a row with a 35% increase the past month.
The 10 best performing stocks the past week
Waste Management in focus – Turning trash to cash
The Waste Management sector leads the transformation of waste disposal into usable materials and products. Companies in this sector focus on recycling and responsible waste handling. Similar to other emerging sectors, some Waste Management companies are still early stage, with the development of new recycling methods, implementation of new regulation, and increased awareness of the benefits. This requires significant investments for growth. It is a high-risk, high-reward sector within impact investing, distinct from more established fields like solar and wind farms with a more predictable outcome. The Nordic sector comprises of 22 listed companies, detailed below. Year-to-date, the sector has delivered a return of -19%, actually making it the best-performing sector among the seven sectors we have curated. This demonstrates the resilience of waste management in times of uncertainty.
Year-to-Date return for Waste Management stocks
Tomra Systems ASA (Nordnet) is the biggest and most well-known company in the sector – especially for its reverse vending machines. Tomra Systems develops products for automated return management. The company’s expertise is in the development of sensor-based solutions that is used in product sorting for deposit systems, sorting of waste, and sorting ore and minerals in mining. The products are used by several customers in different industries such as return machines in super markets.
The company has for many years delivered great returns for shareholders. However, for the past two years the share price has fallen from almost 315 NOK to 100 NOK, where the growth has slowed down significantly. The company has a market cap. of NOK 30 billion and delivered revenue of NOK 12.2 billion in 2022 with a net income of NOK 1.1 billion. In other words, Tomra is an established and profitable waste management company. In Q3 2023, the company delivered revenues of 3.5 MNOK up from 3.2 MNOK in Q3 2022, while the EPS fell from 0.97 NOK per share to 0.60 NOK per share including costs to a cyberattack. The order backlog increased YoY, but fell QoQ to 1.2 MNOK.
Cambi ASA (Nordnet) is the best-performing stock in the sector year-to-date and second best of the impact stocks with a return of 189%. The company is a developer of technological systems and processes that are used to break down waste and sludge. The technology is mainly used for sewage treatment and for handling food waste, which is later broken down into biogas. The business is run via most production facilities around the Nordic domestic market.
The company has a market cap. of 2.3 MNOK. The company ended 2022 with revenues of 440 MNOK, and a net loss of 14 MNOK. However, from Q1-Q3 2023 the company has already generated revenues of 682 MNOK and a profit of 172 MNOK, thus delivering signifcant growth. The order backlog rose from 619 MNOK in Q3 2022 to 1.8 MNOK in Q3 2023 as a great indication of the current interest in the solutions that the company delivers. Earlier this year, we wrote about Cambi, Waste Plastic Upcycling, and Scandinavian Enviro Systems AB. You can read the article here.
Share price development for Tomra Systems ASA and Cambi ASA the past year
Overview of all sectors year-to-date
The waste management sector, characterized by its essential and non-cyclical nature, often presents a stable investment opportunity with long-term potential, driven by increasing environmental awareness, regulatory demands, and the growing need for efficient waste disposal and recycling solutions. Year-to-date, Cambi ASA has significantly outperformed the rest of the sector with a 188% increase.
Overview of the return year-to-date for the stocks in the Waste Management sector
Energy Production & Storage
The Energy Production and Storage sector offers substantial investment opportunities, as it stands at the forefront of the transition towards renewable energy sources, driven by climate concerns and technological advancements. Year-to-date, only 3 stocks have delivered a postive return.
Overview of the return year-to-date for the stocks in the Energy Production & Storage sector
Energy Production Equipment & Services
The Energy Production Equipment & Services is providing technical equipment and machines among other energy producing companies such as Ørsted. The sector is to some extent influenced by oil and gas price fluctuations and industry trends. Year to date, BPC Instruments AB has performed best with an 242% increase.
Overview of the return year-to-date for the stocks in the Energy Production Equipment & Services sector
Power2X & Fuel Cells
The Power-to-X and Fuel Cells sector offers exciting investment opportunities in the evolving landscape of clean and sustainable energy technologies, but investors should also be mindful of the evolving regulatory and competitive landscape in this rapidly advancing field. Refuels NV remains only stock year-to-date with a postive return.
Overview of the return year-to-date for the stocks in the Power2X & Fuel Cells sector
Food & Beverages
The food and beverages sector is heavily driven by consumer demand and having strong brands is a major advantage. Investors should focus consider factors such as changing consumer preferences, health and sustainability trends, and global supply chain dynamics to identify promising opportunities. Proximar Seafood AS and Nordic Aqua Partners AS within the fish industry is have delivered returns of 4% and 19% each.
Overview of the return year-to-date for the stocks in the Food & Beverages sector
CO2 & Carbon Capture
The CO2 and Carbon Capture sector presents compelling investment opportunities into companies involved in capturing and removing carbon dioxide from the atmosphere. It is a small sector consisting of only 6 stocks, with Photocat A/S as the best performing year-to-date.
Overview of the return year-to-date for the stocks in the CO2 & Carbon Capture sector
The mobility sector includes among others ride-sharing platforms and development of electric veichles with the purpose of lowering emissions and costs for consumers, while increasing flexibility. The mobility is the smallest sector we track with totalling 5 stocks. None of the companies have delivered a postive return year-to-date.
Overview of the return year-to-date for the stocks in the Mobility sector