Just Energy Story

JE -- USA Stock

USD 4.00 0.06 1.52%

Macroaxis Story

It looks like Avista will continue to recover much faster as its share price surged up 0.39% today to Just Energy's 22.5403%. While some millenniums may be indifferent towards utilities space, we will examine how sound are Just Energy fundamentals compared to Avista. 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 Avista shareholders switch to Just Energy (NYSE:JE)?

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.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Just Energy or Comp En is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Just Energy dividends

A dividend is the distribution of a portion of Just Energy earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Just Energy dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Just Energy one year expected dividend income is about $0.08 per share.

Just Energy Dividends per Basic Common Share is projected to decrease significantly based on the last few years of reporting. The past year's Dividends per Basic Common Share was at 3.71.

	Last Reported	Projected for 2021
Payment of Dividends and Other Cash Distributions	-30.1 M	-32.5 M
Dividend Yield	0.28	0.30
Dividends per Basic Common Share	3.71	3.81

Investing in stocks that pay dividends, such as stock of Just Energy Group, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Just Energy must own a stock before its ex-dividend date to receive its next dividend.

This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Just Energy. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

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.

Correlation Between Just Energy and Comp En DE

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Just Energy together with similar or unrelated positions with a negative correlation. For example, you can also add Comp En to your portfolio. If Comp En is not perfectly correlated to Just Energy it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Just Energy for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please check pair correlation details between JE and CIG for more information.

Note

Are you currently holding both Just Energy and Comp En in your portfolio?

Please note if you are using this as a pair-trade strategy between Just Energy and Comp En, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

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

Lets now take a look at 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 1.31 B, which is much higher than that of the Utilities?Diversified

	Just Energy	2.83 Billion
	Sector	0.0
	Avista	1.31 Billion

2.8 B

Just Energy

Sector

1.3 B

Avista

Over 3 percent surge for Just Energy. What does it mean for shareholders?

Just Energy latest mean deviation ascents over 2.83. Just Energy Group shows above-average downside volatility for the selected time horizon. We advise investors to inspect Just Energy Group further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Just Energy future alpha.

Although few other entities under the utilities?diversified industry are still a bit expensive, Just Energy may offer a potential longer-term growth to shareholders. To conclude, as of the 22nd of January 2021, we see that Just Energy moves slightly opposite to the market. The firm is overvalued with below average chance of financial distress within the next 24 months. Our up-to-date 30 days Buy-Hold-Sell recommendation on the firm is Strong Sell.

About Contributor

Raphi Shpitalnik is a Junior Member of Macroaxs Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time base at the beginning of the pandemic and eventually acquired a real test for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile

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 Raphi 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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