Review of Financial analysis: Just Energy Group Inc. (NYSE:JE)

Just Energy Group Inc. (JE; NYSE:JE), a retail energy provider specializing in electricity and natural gas commodities, renewable energy options and carbon offsets, announced its first quarter results for fiscal year 2021.

Key developments:

  • On August 27, 2020 senior unsecured debt holders, convertible debenture holders and shareholders approved the Recapitalization. The Recapitalization is part of a comprehensive plan to strengthen and de-risk the business and position Just Energy for sustainable growth as an independent industry leader. The Recapitalization will significantly improve Just Energy’s financial flexibility with an equity injection of over $100 million and reduces net debt and preferred shares by approximately $520 million. As part of the approved Recapitalization, stakeholders voted for a reconstituted Board of Directors for Just Energy, with seven directors, including five new directors. The reconstituted Board will assume their responsibilities upon the implementation of the Recapitalization.
  • Base EBITDA from continuing operations increased 67% to $40.5 million compared to the first quarter of fiscal 2020, primarily attributable to higher Base gross margin,  a decrease in selling non-commission and marketing expenses and bad debt expense resulting from prior year cost containment efforts and improving customer enrolment controls and operational processes, respectfully.
  • Base gross margin increased 3% to $136.3 million compared to the first quarter of fiscal 2020, primarily due to optimization of weather hedge costs, higher JustGreen margin and a favourable exchange rate, partially offset by a decline in the customer base.
  • Administrative expenses decreased 2% to $40.0 million compared to the first quarter of fiscal 2020. Excluding the impact of the Strategic Review costs of $3.6 million in the quarter, administrative expenses decreased 11% due to savings from prior year restructuring actions, and an optimized customer service cost structure amid COVID-19.
  • Selling non-commission and marketing expenses in the first quarter decreased 58% to $11.0 million compared to the first quarter of fiscal 2020 due to the suspension of the door-to-door channel, prior year realized cost savings and current year cost containment actions.
  • Unlevered free cash flow of $25.3 million increased $30.1 million from negative $4.8 million in the prior year comparable quarter, primarily driven by realized overhead cost savings and operational efficiencies, improved residential customer collections, and lower capital expenditures, partially offset by Strategic Review costs.
  • Total residential customer equivalent (“RCE”) count decreased 6% from year-end fiscal 2020 to 3.2 million. The decrease is primarily driven by lower customer additions and reflects the natural and self-imposed selling constraints posed by COVID-19 partially offset by lower first quarter customer attrition compared to the prior year comparable quarter resulting from significant improvements in customer survival curves and customer enrolment controls.
  • Embedded gross margin (“EGM”) of $1,642.5 million decreased 21% compared to the EGM as at June 30, 2019 and 9% from year-end fiscal 2020 due to the decline in the North American commodity customer base, partially offset by the stronger U.S. dollar.

On 08-28-2k20 (Friday) Shareholders tracking shares of Just Energy Group Inc. (JE) belongs to Utilities sector and Utilities – Diversified industry. JE flaunted 26.22% to reach at $0.39 during previous trading session. JE Inc. has a total market value of 59.06M at the time of writing – representing $151.64M outstanding shares. Turning to other widely-considered trading data, this company’s half yearly performance is observed at -61.05%.

Volume Evaluation

The Canada listed company saw a recent price trade of $0.39 and 164,658,137 shares have traded hands in the session. There are 5.25M shares which are traded as an average over the last three months period.

Many investors forget that one of the defining characteristics of the stock market is that it’s a market. Buyers and sellers help determine the price of each stock, and the more buyers and sellers a particular stock has interested in it, the more liquid the market will be. Liquidity can have a profound impact on just how violently stock prices can move in either direction, and the reasons have to do with the nature of the market in a stock’s shares.

Trading volume, or volume, is the number of shares or contracts that indicates the overall activity of a security or market for a given period. Trading volume is an important technical indicator an investor uses to confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether they should buy or sell the security.

Performance Levels

Looking performance record on shares of Just Energy Group Inc. (JE) we observed that the stock has seen a move -65.53% over the last 52-week trading period. The stock generated performance of -2.60% tracking last 3 months. Investors will be anxiously watching to see if things will turn around and the stock will start gaining or losing momentum over the next few months. If we look back year-to-date, the stock has performed -76.82%. Shares are at 34.31% over the previous week and 5.24% over the past month.

Analyst Views:

Fluctuating the focus to what the Wall Street analysts are projecting, we can see that the current consensus target price on shares is $N/A. Analysts often put in a lot of work to study stocks that they cover. Wall Street analysts have a consensus recommendation of 1.70on this stock. This number falls on a one to five scale where a 1 would be considered a strong buy and 5 means a strong sell, 2 shows Buy, 3 Hold, 4 reveals Sell recommendation.

Volatility Insights

Watching some historical volatility numbers on shares of Just Energy Group Inc. (JE) we can see that the 30 days volatility is presently 8.64%. The 7 days volatility is 18.45%. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

The company has a beta of N/A. 1.00 indicates that its price is correlated with the market. Less than 1.00 shows less volatility than the market. Beta greater than 1.00 indicates that the security’s price is theoretically more volatile than the market.

The Average True Range (ATR) value reported at 0.04. The average true range (ATR) is a technical analysis indicator that measures volatility by decomposing the entire range of an asset price for that period. A stock experiencing a high level of volatility has a higher ATR, and a low volatility stock has a lower ATR. The ATR may be used by market technicians to enter and exit trades, and it is a useful tool to add to a trading system. It was created to allow traders to more accurately measure the daily volatility of an asset by using simple calculations. The indicator does not indicate the price direction; rather it is used primarily to measure volatility caused by gaps and limit up or down moves. The ATR is fairly simple to calculate and only needs historical price data.

Technical Considerations

Just Energy Group Inc. (JE) stock positioned -58.19% distance from the 200-day MA and stock price situated -5.18% away from the 50-day MA while located 17.76% off of the 20-day MA.

RSI value sited with reading of 54.55. Relative Strength Index (RSI) is an extremely useful and popular momentum oscillator. The RSI compares the magnitude of a stock’s recent gains to the magnitude of its recent losses and turns that information into a number that ranges from 0 to 100. It takes a single parameter, the number of time periods to use in the calculation. In his book, Wilder recommends using 14 periods.

Observing the Technical Indicators:

Just Energy Group Inc. institutional ownership is held at 22.54% while insider ownership was 42.98%. As of now, JE has a P/S, P/E and P/B values of N/A, 0.22 and N/A respectively. Its P/Cash is valued at N/A. The Company’s net profit margin for the 12 months at 0. Comparatively, the gazes have a Gross margin N/A.

Profitability ratios:

Looking into the profitability ratios of JE stock, an investor will find its ROE, ROA, ROI standing at N/A, N/A and N/A, respectively.

Earnings per Share Details of Just Energy Group Inc.:

The EPS of JE is strolling at 1.76, measuring its EPS growth this year at -41.10%. As a result, the company has an EPS growth of N/A for the approaching year.

Given the importance of identifying companies that will ensure earnings per share at a tall rate, we later obsession to umpire how to identify which companies will achieve high amassing rates. One obvious showing off to identify high earnings per portion count together companies are to locate companies that have demonstrated such build up beyond the p.s. 5 to 10 years.

The payout ratio shows the proportion of earnings paid out as dividends to shareholders, typically expressed as a percentage of the company’s earnings. The payout ratio can also be expressed as dividends paid out as a proportion of cash flow. The payout ratio is also known as the dividend payout ratio. The Company’s payout ratio was N/A and Price to free cash flow remained $N/A.

Brad Larson

About Brad Larson

This is Brad Larson and I like to introduce myself as an adviser, in the “Earnings Review”. I worked independently as a self motivator and with the financial institute as financial adviser to invest in the Earnings sector for over 9 years in the developing countries by introducing new phases and ways to improve in the Earnings sector.I specialize in market indices, currency pairs, and commodities, rarely trading individual stocks. I accomplished my Post-Graduate degree in Business Administration with a specialization in Finance from International School of Business and Media (ISB&M). I like to travel all over the globe to get new experience and provide by best services to the companies. As an adviser I like to work with new people to share and explore new ideas keeping in view minimizing the operating cost and giving the best final product through new technology and minimizing the time of development.

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