Just Energy Story

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JE -- USA Stock  

USD 3.94  0.09  2.34%

Just Energy Group is scheduled to announce its earnings today. Just Energy Enterprise Value is projected to decrease significantly based on the last few years of reporting. The past year's Enterprise Value was at 551.45 Million. The current year Free Cash Flow is expected to grow to about 54.4 M, whereas Earnings before Tax are forecasted to decline to (268.6 M). As many passive investors are finally getting excited about utilities space, Just Energy Group could be a good starting point. We will analyze why Just Energy investors may still consider a stake in the business.
Published over two weeks ago
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How much will Just Energy owe in March?
This firm reports 497.14 M of total liabilities. The company has a current ratio of 0.93, implying that it has not enough working capital to pay out debt commitments in time. We provide advice to complement the regular expert consensus on Just Energy. Our dynamic recommendation engine utilizes a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
Just Energy financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Just Energy, including all of Just Energy's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Just Energy assets, the company is considered highly leveraged. Understanding the composition and structure of overall Just Energy debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Just Energy Total Liabilities

Just Energy Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Just Energy Group has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Just Energy balance sheet include debt obligations and money owed to different Just Energy vendors, workers, and loan providers. Below is the chart of Just Energy short long-term liabilities accounts currently reported on its balance sheet.
You can use Just Energy Group financial leverage analysis tool to get a better grip on understanding its financial position

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.

Breaking down Just Energy Indicators

The latest price surge of Just Energy may raise some interest from shareholders. The stock closed today at a share price of 7.16 on 1,902,067 in trading volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in March. The stock standard deviation of daily returns for 30 days investing horizon is currently 5.15. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the Just Energy Group partners.

Liabilities Breakdown

1.2 B
Current Liabilities
648.8 M
Long-Term Liabilities
Total Liabilities1.55 Billion
Current Liabilities1.19 Billion
Long-Term Liabilities648.85 Million
Tax Liabilities11.05 Million

Will Just Energy continue to go ballistic?

Jensen alpha is down to 0.35. It may indicate a possible volatility dip. Just Energy Group exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Just Energy Group individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Just Energy future systematic risk.

Our Bottom Line On Just Energy Group

Although some other entities 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. The bottom line, as of the 15th of February 2021, we believe that at this point, Just Energy is overvalued with below average probability of distress within the next 2 years. Our primary recommendation 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 Achuva Shats 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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