One Energy Stock, Ramping Up Production - GIP

Section1: Company Overview and Fundamental Insights:

1.1 Company Overview:

Green Impact Partners Inc. (TSXV: GIP) is a clean energy company with an operating portfolio of water and solids treatment and recycling facilities in North America. The company also has a portfolio of renewable natural gas and clean energy development projects. Its services include water and solids recycling management, disposal services and energy product optimization services. Its operating segments are Water and Industrial, and Energy Production. 

Kalkine’s Penny Report covers the Investment Highlights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.

 1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~60.19% of the total shareholding. Wolverine Management Services Inc and Encompass Capital Advisors, LLC hold a maximum stake in the company at ~­­­23.42% and ~16.59%, respectively.

1.4 Key Metrics:

The company reported slightly lower revenue in Q1 2024 compared to Q1 2023, however its gross profit stood upward. Furthermore, it clocked improving liquidity ratios and industry beating average accounts receivable days, displaying its strength and adaptability.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of the company’s recent activities, such as an announcement regarding insider investment.

2.2 Insights on Q1 2024 Financial Performance:

Section 3: Key Risks

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

The stock has witnessed an upside of ~23.57% and ~15.33% over the last 1 month and 3 months respectively. Moreover, the stock is trading below the average of 52-week high price of CAD 8.80 and 52-week low price of CAD 2.45 providing an opportunity to accumulate the stock.

4.2 Fundamental Valuation

Valuation Methodology: EV to Sales Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is June 11, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.  

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.