Impax Asset Management, a UK-based investment firm focused on environmental markets, is attracting attention as a potential opportunity for passive income and green investing. Oliver Rodzianko, an analyst, believes that the company's stock is currently selling at a 68% discount from its high, making it an attractive investment option [9ec78d56]. The company's balance sheet shows that 71% of its assets are balanced by equity, providing stability. Additionally, Impax has been experiencing revenue growth at an average rate of 29% per year over the past 10 years [9ec78d56].
Rodzianko estimates that the stock could be 60% undervalued based on his discounted cash flow analysis. However, there are some risks to consider. Impax pays out 78% of its earnings as dividends, which may not be sustainable in the long term. Furthermore, the company's revenue growth has slowed down in the past 12 months [9ec78d56].
Despite these risks, Rodzianko plans to invest in Impax for exposure to environmental, social, and governance (ESG) investing and its potential for future growth. Impax Asset Management offers investors an opportunity to support renewable energy and other environmentally friendly initiatives while potentially earning passive income [9ec78d56].
In a recent article by ShareCast, Lucy Tobin at the Financial Mail on Sunday tipped shares of Moneysupermarket, arguing that the energy sector would recover at some point. Moneysupermarket's shares had fallen year-to-date, after management said that car insurance quotes were stabilizing after the rapid inflation in 2023. The government's energy price cap after Russia's Ukraine invasion had frozen that business stream, which at one point had generated £50 of annual turnover. But a recovery in energy would kick in at some point, according to Tobin [1341312d].
The Financial Mail on Sunday's Midas column recommended that readers "buy and hold" onto shares of Impax Environmental Markets, touting the company's mix of green credentials and commercial nous. Impax was invested in multiple outfits, including DSM-Firmenich, the maker of a digestion aid for cattle that can slash methane emissions by nearly half. Other investments included small and mid-sized firms with an environmental twist, whether it be handling hazardous waste in the US or reusable pallets in Australia [1341312d].
According to a recent analysis by QuotedData, Impax Environmental Markets (IEM) aims to invest in good-quality, fast-growing companies that are providing innovative solutions to environmental challenges or improving resource efficiency. The managers believe that the demand for the products and services supplied by the businesses in IEM's portfolio was not much affected by recent market sell-offs. IEM focuses on six core themes: energy, clean and efficient transport, water, circular economy, smart environment, and sustainable food. The trust's managers believe that IEM's shares are particularly attractive at the moment due to potential turning points in US interest rates, the performance of mid and small caps, and the valuation premium of stocks in IEM's portfolio. IEM's portfolio is biased towards small- and mid-cap stocks and is diversified across different sectors and geographies. The trust's performance has been influenced by macroeconomic factors and the outperformance of large caps versus small caps. IEM's discount has widened, and the trust has been buying back shares to enhance NAV for ongoing shareholders. The management fee is calculated based on the net assets of the trust [f0d281cf].