According to UNESCO, “water scarcity represents for countries the most pressing challenge for socioeconomic and human development in general.” This has boosted the titles of companies in the water storage and purification industry on the stock market.
A sample of ten issuers belonging to the water industry and listed on different stock markets registered an average growth of 34.98% in the price of their shares during 2021 and accumulated a market value of 53.452 million dollars.
Alain Jaimes, junior stock analyst at Signum Research, mentioned that water treatment and storage are possible solutions to the potential shortage problems that are estimated at a global level.
In this sense, companies in this sector are anticipating challenges with the services they offer, which range from water purification through the use of filters and chemical processes in industrial treatment plants, to the use of water tanks. for storage.
The prospect of a possible shortage of this non-renewable resource would cause the demand for companies’ products and services to increase, generating an appreciation in the price of their shares.
Among the titles of the firms that have grown above the average during this year is the French Veolia, which has had an increase of 64.54% in the Paris Stock Exchange, with a market value of 24.735 million dollars.
The second place is for the American Evoqua, whose papers rise 69.68% and has a capitalization value of 5.527 million dollars on Wall Street. The third place is occupied by the Spanish Fluidra, whose shares rise 63.01% on the Madrid Stock Exchange and has a market value of 214 million dollars.
Of the companies whose growth is below the average are the Korean Coway, whose shares are up 6.74% and has a capitalization value of 4.739 million dollars.
Also Meter, listed in New York, with a growth of 11.83% and a value of 3.077 million dollars.
Alain Jaimes said that these companies have financial strength as they have continuously generated revenue growth, a level of debt that allows them to maneuver efficiently and without great pressure, as well as margins that have expanded.
In Mexico
The Rotoplas issuer, listed on the Mexican Stock Exchange, has raised the price of its shares by just 14.55%, although it has had positive results like the rest of the firms, it has not stood out and has a market value of 682 million euros. Dollars.
Jacobo Rodríguez, Director of Economic Analysis at Black Wallstreet Capital, explained that “the issuer has improved its finances and its business plan in recent years, however, it must still focus on increasing profitability for investors since the ROE ( Return per Share) at 12 months is in the middle digit ”.
Currently, within the challenges for the UN are 2,000 million people living in countries that suffer from water scarcity, 90% of natural disasters are related to this resource, 80% of wastewater returns to the ecosystem without being treated or reused, in accordance with Sustainable Development Goal (SDG) 6.
Reference-www.eleconomista.com.mx