The Analysts of Taking Stock say that Wigton Windfarm’s push towards diversification and its renewed contracts with the Government of Jamaica are all positive indications of the company’s growth potential.

Wigton is a renewable energy company that installs and provides clean and renewable energy solutions such as wind, solar and hydro. 

Speaking with Kalilah Reynolds, Equity Trader at JMMB, Clive Charlton said there is still room for the company to grow. 

“This company has tremendous potential for growth, particularly with this global crisis and the world focusing more on renewable energy,” he said.

The company recorded a 17% increase in revenue for its first quarter ending June 2022 compared to the same period last year, from $669 million to $785 million. Additionally, it reported $249 million in net profits. 

Charlton said the rebound in revenues for the first quarter was good. This is despite earnings for the March quarter being down slightly.

He said that those revenues would have been affected by the renegotiation of its contract with the island’s main electricity provider, JPS.

“Also, increasing global energy prices would have also impacted them even though they are a renewable energy company. And other things such as parts and maintenance. Insurance would also have gone up significantly for the company,” he said.

Similarly, he noted that Wigton is looking to replace some of its turbines in short order, which will require significant capital. 

However, he noted that the company has been making firm moves to diversify its revenue base. 

Wigton acquired a 21 per cent stake in Flash Holdings, the parent company of electric vehicle dealership Flash Motors, and entered a joint-venture project agreement with Innovative Energy company.

The IEC agreement covers a contract to design, supply, install, test and commission a two-megawatt photovoltaic system at the Norman Manley International Airport in Kingston.

The company’s stock has remained stable for several months, closing at 52 cents on Wednesday, October 5, after trading in the 50-60 cents range for the past three months.

Charlton said that he believes the stock is relatively cheap compared to the sector that it is in. 

“It is trading at just under 10x its earnings per share, which is really very good. It’s much cheaper, relative to the sector that it belongs to,” he said.

The Equity Trader said that he believes Wigton’s is more suitable for medium to long-term investors. 

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