The top 10 green companies to invest in discussed below come from a list of hundreds of companies, some of which produce 'green energy', others that produce 'green technology' or 'green products or services', and others that are environmentally friendly through corporate environmental responsibility. For the purposes of this article, a green company shall be defined as a company that primarily or significantly produces, markets or distributes renewable energy sources and/or environmentally friendly products or services.
A top 10 green company can be considered such if it meets financial performance benchmarks. The following companies are all traded on U.S. exchanges, meet 3-5 year performance indicators that include year over year profitability as reflected in annual net income values; a product and/or service with a growing demand trend as reflected by 3 year annual revenue ending 2009.
The 10 green companies one may choose to invest in also have a recent current ratio no lower than 1, a Return on Equity (ROE) of 10% or greater except in the case of Martek Bioscience and Methanex where ROI is used instead, and a Return on Assets (ROA) of 5% or higher. These companies are all involved in environmental responsibility and are mostly small-cap, therefore, considered higher risk investments.
(1) Ormat Technologies Inc. (ORA): Small-cap geothermal energy producer. 3 consecutive years of rising profitability. Profit margin 16.58%, ROA 2.46%, ROE 7.85%, current ratio 1.399
(2) Fuel Systems Solutions (FSYS): Small-cap alternative fuel system engineering. 3 consecutive years of rising profitability. Profit margin 8.21%, current ratio 1.982%, ROA 9.46%., ROE 15.97%
(3) Martek Bioscience (MATK): Small-cap natural and bio-foods. 3 consecutive years of rising profitability. Profit margin 11.76%, ROA 5.95%, ROE 6.63%, current ratio 9.736.
(4) Green Mountain Coffee Roasters (GMCR): Mid-cap organic and premium coffee and vertically integrated products. 3 consecutive years of rising profitability. ROE 14.13%, ROA 9.96%, profit margin 5.65%, current ratio 2.766.
(5) Pall Corp (PLL): Mid-cap natural resource purification products and systems. 3 consecutive years of profitability, profit margin 9.55%, ROE 19.82%, ROA 7.45%, current ratio 2.391
(6) Avista corporation (AVA): Small-cap renewable and non-renewable energy. 5.76%, ROE 8.5%, ROA 3.47%, 3 consecutive years of profitability. Current ratio .829.
(7) United Natural Foods (UNFI): Small-cap natural/organic foods. 3 consecutive years of rising profitability. Current ratio 1.468, ROA 6.39%, ROE 11.65%, Profit margin 1.8%
(8) Methanex Corporation (MEOH): Mid-cap methane production. 3 consecutive years of rising profitability. Current ratio 2.3%, 5 year profit margin 26.90%
(9) Ecology and Environment, Inc. (EEI): Micro-cap environmental consulting. 3 consecutive years of profitability. ROE 12.74%, ROA 6.99%, Profit margin 3.37% current ratio 2.3, ROA 11.60, 5 year ROI 17%
(10) Waste Management, Inc. (WM): Large-cap waste recycling. 3 years of consecutive years of profitability. ROE 16.31%, ROA 6.10%, current ratio 1.038, profit margin 8.43%
The above 10 green companies are not stock recommendations but rather a profile of 10 'green companies' with financial statistics that reflect a profitable business model in the past. Some of these environmentally friendly companies have high market entry barriers which helps their competitive corporate positioning.
The noted financial statistics for these 10 green companies do not present a complete financial picture, but may inform one enough to further investigate these companies, what they do for the environment, and how well they do it. Financial information for these companies is sourced from Yahoo finance, Google finance and Motley Fool Caps.
Numerous investing strategies can be used with the above green companies, for example, all 10 could be bought for diversification. Recent developments in environmental technology, energy and legislative environment may also factor into a decision to purchase or sell these companies.
Other factors that may affect how well these green companies perform are technical analysis, options price patterns, supply and demand of the products or services offered, competitive positioning, research and technology and market share. The above does not constitute stock advice but rather information and the author assumes no liability for the results of investment decisions made with the information in this article.
A top 10 green company can be considered such if it meets financial performance benchmarks. The following companies are all traded on U.S. exchanges, meet 3-5 year performance indicators that include year over year profitability as reflected in annual net income values; a product and/or service with a growing demand trend as reflected by 3 year annual revenue ending 2009.
The 10 green companies one may choose to invest in also have a recent current ratio no lower than 1, a Return on Equity (ROE) of 10% or greater except in the case of Martek Bioscience and Methanex where ROI is used instead, and a Return on Assets (ROA) of 5% or higher. These companies are all involved in environmental responsibility and are mostly small-cap, therefore, considered higher risk investments.
(1) Ormat Technologies Inc. (ORA): Small-cap geothermal energy producer. 3 consecutive years of rising profitability. Profit margin 16.58%, ROA 2.46%, ROE 7.85%, current ratio 1.399
(2) Fuel Systems Solutions (FSYS): Small-cap alternative fuel system engineering. 3 consecutive years of rising profitability. Profit margin 8.21%, current ratio 1.982%, ROA 9.46%., ROE 15.97%
(3) Martek Bioscience (MATK): Small-cap natural and bio-foods. 3 consecutive years of rising profitability. Profit margin 11.76%, ROA 5.95%, ROE 6.63%, current ratio 9.736.
(4) Green Mountain Coffee Roasters (GMCR): Mid-cap organic and premium coffee and vertically integrated products. 3 consecutive years of rising profitability. ROE 14.13%, ROA 9.96%, profit margin 5.65%, current ratio 2.766.
(5) Pall Corp (PLL): Mid-cap natural resource purification products and systems. 3 consecutive years of profitability, profit margin 9.55%, ROE 19.82%, ROA 7.45%, current ratio 2.391
(6) Avista corporation (AVA): Small-cap renewable and non-renewable energy. 5.76%, ROE 8.5%, ROA 3.47%, 3 consecutive years of profitability. Current ratio .829.
(7) United Natural Foods (UNFI): Small-cap natural/organic foods. 3 consecutive years of rising profitability. Current ratio 1.468, ROA 6.39%, ROE 11.65%, Profit margin 1.8%
(8) Methanex Corporation (MEOH): Mid-cap methane production. 3 consecutive years of rising profitability. Current ratio 2.3%, 5 year profit margin 26.90%
(9) Ecology and Environment, Inc. (EEI): Micro-cap environmental consulting. 3 consecutive years of profitability. ROE 12.74%, ROA 6.99%, Profit margin 3.37% current ratio 2.3, ROA 11.60, 5 year ROI 17%
(10) Waste Management, Inc. (WM): Large-cap waste recycling. 3 years of consecutive years of profitability. ROE 16.31%, ROA 6.10%, current ratio 1.038, profit margin 8.43%
The above 10 green companies are not stock recommendations but rather a profile of 10 'green companies' with financial statistics that reflect a profitable business model in the past. Some of these environmentally friendly companies have high market entry barriers which helps their competitive corporate positioning.
The noted financial statistics for these 10 green companies do not present a complete financial picture, but may inform one enough to further investigate these companies, what they do for the environment, and how well they do it. Financial information for these companies is sourced from Yahoo finance, Google finance and Motley Fool Caps.
Numerous investing strategies can be used with the above green companies, for example, all 10 could be bought for diversification. Recent developments in environmental technology, energy and legislative environment may also factor into a decision to purchase or sell these companies.
Other factors that may affect how well these green companies perform are technical analysis, options price patterns, supply and demand of the products or services offered, competitive positioning, research and technology and market share. The above does not constitute stock advice but rather information and the author assumes no liability for the results of investment decisions made with the information in this article.
Sources:
1. http://www.finance.yahoo.com (Yahoo Finance)
2. http://caps.fool.com (Motley Fool Caps)
3. http://www.google.com/finance (Google Finance)
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