Just Energy Story

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JE -- USA Stock  

USD 0.56  0.21  60.00%

It looks like Avista will be up for a correction faster as its share price went up 0.25% today to Just Energy's 3.33%While some baby boomers are getting worried about utilities space, we are going to digest both, Just Energy and Avista as potential shorter-term investments. We are going to discuss some of the competitive aspects of both Just Energy and Avista.
Published over a month ago
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Will Just Energy (NYSE:JE) shareholders shift to Avista (NYSE:AVA)?
By analyzing existing basic indicators between Just Energy and Avista, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Avista with a short position in Just Energy. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Just Energy has an asset utilization ratio of 226.87 percent. This indicates that the company is making $2.27 for each dollar of assets. An increasing asset utilization means that Just Energy Group is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Just Energy's Liquidity

Just Energy financial leverage refers to using borrowed capital as a funding source to finance Just Energy Group ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Just Energy financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Just Energy's total debt and its cash.

How Just Energy utilizes its cash?

To perform a cash flow analysis of Just Energy, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Just Energy is receiving and how much cash it distributes out in a given period. The Just Energy cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Just Energy Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 41.14 Million

Breaking down Just Energy Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Just Energy revenue. Based on the latest financial disclosure, Just Energy Group reported 2.83 B of revenue. This is 28.54% lower than that of the Utilities sector and significantly higher than that of the Utilities?Diversified industry. The revenue for all United States stocks is 70.0% higher than that of Just Energy. As for Avista we see revenue of 1.32 B, which is much higher than that of the Utilities?Diversified

Just Energy2.83 Billion
Avista1.32 Billion
2.8 B
Just Energy
1.3 B

Will Just Energy latest dip continue?

Latest Risk Adjusted Performance is up to 0.03. Price may dip again. Just Energy Group is displaying above-average volatility over the selected time horizon. Investors should scrutinize Just Energy Group independently to ensure intended market timing strategies are aligned with expectations about Just Energy volatility. Just Energy Group is a potential penny stock. Although Just Energy may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Just Energy Group. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on this equity instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Bottom Line On Just Energy Group

Although many other companies in the utilities?diversified industry are either recovering or due for a correction, Just Energy may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 23rd of August 2020, we believe that at this point, Just Energy is undervalued with close to average chance of bankruptcy within the next 2 years. However, our present advice on the firm is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Gabriel Shpitalnik do not own shares of Just Energy Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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