Is it a good company at a reasonable price? The stock price is cheap. It is expected that this company will be taken over the $0 for the shareholders.
I do not own this stock of Just Energy Group Inc (TSX-JE.H, OTC-JENGQ). I started to follow this is July 2010. It was one of the high yield income trusts that people were talking about, so I decided to check it out.
When I was updating my spreadsheet, I noticed most of the EPS us because of an unrealized gain on derivative instruments etc. I think that they should do an Adjusted Earnings per Share. They do show an Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). This company has a financial year ending March 31 each year, so I am looking at the financial year ending March 31, 2022.
Just Energy Group Inc (TSX-JE, NYSE-JE) has symbols changed to (TSX=JE.H, OTC-JENGQ). This company is moving from the TSX Stock Exchange to the TSX Venture Exchange and from the NYSE Stock Exchange to OTC. This was effective on June 4, 2021. See Press Release.
If you had invested in this company in December 2011, $1,134.54 you would have bought 3 shares at $378.18 per share. In December 2021, after 10 years you would have received $480.21 in dividends. The stock would be worth $3.27. Your total return would have been $483.48.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $378.18 | $1,134.54 | 3 | 44 | $480.21 | $3.27 | $483.48 |
The dividends were cut in 2021. When this stock has yields, they were quite high as this company used to be an income trust.
Debt Ratios are current fine. The Long Term Debt/Market Cap Ratio is 0.00 because the company no longer has much in Long Term Debt. The Liquidity Ratio in 2022 is 1.50. The Debt Ratio for 2022 is 1.14. This is better than the last few years when it was under 1.00. If this ratio is below 1.00, it means the company has a negative book value. This stock now has a positive book value.
The Total Return per year is shown below for years of 5 to 20 to the end of 2021. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2016 | 5 | 0.00% | -53.27% | -66.07% | 12.79% |
| 2011 | 10 | 0.00% | -18.49% | -44.28% | 25.80% |
| 2006 | 15 | 0.00% | -2.19% | -32.96% | 30.77% |
| 2001 | 20 | 0.00% | 19.10% | -21.88% | 40.98% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are all negative and so useless. The corresponding 10 year ratios are 0.87, 1.36 and 1.71. The corresponding historical ratios are 3.15, 3.69 and 4.23. The current ratio is negative because the EPS is expected to be a loss of $6.48 in 2023. The ratio for 2024 is 0.21 based on a stock price of $0.21 and EPS for 2024 of $1.24. By any measure this ratio is low, as is all the ratios. This is because of years of earnings losses.
I have Funds from Operations (FFO) data. The 5-year low, median, and high median P/FFO Ratios are 5.11, 9.44 and 11.69. The corresponding 10 year ratios are 6.58, 8.94 and 11.05. The current P/FFO is 1.05 based on FFO for the last 12 months of $0.20 and a stock price of $0.21. The current ratio is below the low of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any Graham Price testing as Graham Price cannot properly be calculated with earnings losses and negative book values.
I cannot do any Price/Book Value testing because of negative Book Values.
I get a 10-year median Price/Cash Flow per Share Ratio of 6.97. The current P/CF Ratio is 0.15 based on Cash Flow for the last 12 months of $65.6M, Cash Flow per Share of $1.37 and a stock price of $0.21. The current P/CF ratio is 98% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I cannot do any dividend yield testing because dividends have been stopped.
The 10-year median Price/Sales (Revenue) Ratio is 0.23. The current P/S Ratio is 0.005 based on Revenue for the last 12 months of $2,1167M, Revenue per Share of $44.02 and a stock price of $0.21. The current ratio is 98% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
Results of stock price testing is that the stock price is cheap. Since the stock price is $0.21 it is not surprising that the stock price is cheap on the only tests I can do. However, it is cheap for a reason. If this company is taken over for $0 for shareholders, shares would be worth $0.
When I look at analysts’ recommendations, I find 4 for Underperform on Yahoo Finance. The consensus would be Underperform. I can find no 12 month target stock price.
The last comments were in 2018 on Stock Chase and analysts did not like this company. Stock Chase gives this company 1 star out of 5. There is an interesting article by Howard Smith on Motley Fool talks about problems this company was having in February 2021. The company put out a press release on Business Newswire about their fourth quarter results of 2022 and stalking horse transaction agreement. The company put out a press release on Business Newswire about their first quarter of 2023 results. The company put out a press release on Business Newswire about approval of the SISP. The current stock price is $0.21, but it may soon be worth $0.
Just Energy Group Inc is a retail energy provider specializing in electricity and natural gas commodities and bringing energy-efficient solutions and renewable energy options to customers. Geographically, the company is operating in the United States and Canada, Just Energy serves residential and commercial customers. Its web site is here Just Energy Group Inc .
The last stock I wrote about was about was SmartCentres REIT (TSX-SRU.UN, OTC-CWYUF) ... learn more. The next stock I will write about will be Accord Financial Corp (TSX-ACD, OTC-ACCFF) ... learn more on Monday September 12, 2022 around 5 pm.
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