Just Energy Group Inc Debt dropped on 31.1% in 2015 and Net Debt / EBITDA dropped on 2.4x from 6.4x to 3.9x
14.05.2015 • About Just Energy Group Inc (
$JE) • By InTwits
Just Energy Group Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Just Energy Group Inc is a growth stock: FY2015 revenue growth was 10.2%, 5 year revenue CAGR was 11.1% at FY2015 ROIC 17.9%
- Just Energy Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.1%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 5.8 in FY2015, 7.3 in FY2014, 38.4 in FY2013, 74.8 in FY2012, 33.4 in FY2011
- The company has highly profitable business model: ROIC is at 17.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Just Energy Group Inc ($JE) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,953 | 2,655 | 3,011 | 3,535 | 3,896 | 10.2% |
| Gross Profit | 482 | 500 | 524 | 506 | 600 | 18.7% |
| SG&A | 243 | 291 | 358 | 307 | 379 | 23.8% |
| EBITDA | 200 | 169 | 123 | 151 | 151 | 0.1% |
| Net Income | 355 | -127 | 530 | 136 | -447 | -428.7% |
Balance Sheet
|
|---|
| Cash | 98 | 53 | 38 | 20 | 79 | 286.3% |
| Short Term Debt | 96 | 99 | 162 | 52 | 0 | -100.0% |
| Long Term Debt | 507 | 679 | 795 | 930 | 676 | -27.3% |
Cash flow
|
|---|
| Capex | 33 | 75 | 38 | 7 | 6 | -20.9% |
Ratios
|
|---|
| Revenue growth | 28.4% | -10.1% | 13.4% | 17.4% | 10.2% | |
| EBITDA growth | -4.0% | -15.2% | -27.0% | 22.5% | 0.1% | |
| Gross Margin | 16.3% | 18.8% | 17.4% | 14.3% | 15.4% | 1.1% |
| EBITDA Margin | 6.8% | 6.4% | 4.1% | 4.3% | 3.9% | -0.4% |
| Net Income Margin | 12.0% | -4.8% | 17.6% | 3.8% | -11.5% | -15.3% |
| SG&A, % of revenue | 8.2% | 11.0% | 11.9% | 8.7% | 9.7% | 1.1% |
| CAPEX, % of revenue | 1.1% | 2.8% | 1.3% | 0.2% | 0.1% | -0.1% |
| ROIC | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% | 7.4% |
| Net Debt/EBITDA | 2.5x | 4.3x | 7.4x | 6.4x | 3.9x | -2.4x |
Revenue and profitability
Just Energy Group Inc's Revenue surged on 10.2% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 2.5 pp from 42.1% to 44.6% in FY2015.
Gross Margin increased slightly on 1.1 pp from 14.3% to 15.4% in FY2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 8.7% to 9.7% in FY2015.
Net Income marign dropped on 15.3 pp from 3.8% to -11.5% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Just Energy Group Inc had CAPEX/Revenue of 0.15%. The company showed decline in CAPEX/Revenue of 2.7 pp from 2.8% in FY2012 to 0.15% in FY2015. Average CAPEX/Revenue for the last three years was 0.54%.
Leverage (Debt)
Debt level is 3.9x Net Debt / EBITDA and 4.5x Debt / EBITDA. Net Debt / EBITDA dropped on 2.4x from 6.4x to 3.9x in FY2015. Debt dropped on 31.1% in FY2015 while cash jumped on 286% in FY2015.
Management team
Just Energy Group Inc's CEO is Deborah Merril "Deb". Deborah Merril "Deb" is a founder and has 4 years tenure at the company. Just Energy Group Inc's CFO is Patrick D Mccullough "Pat". Patrick D Mccullough "Pat" has 4 years tenure at the company.
Appendix 1: Peers in Utilities
Below we provide Just Energy Group Inc benchmarking against other companies in Utilities industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Algonquin Power & Utilities Corp ($AQN) | 50.1% | 28.8% | 93.6% | 39.4% | |
| Northland Power Inc ($NPI) | 14.0% | 1.5% | 54.1% | 36.4% | |
| Fortis Inc/Canada ($FTS) | 2.2% | -2.2% | 10.8% | 33.5% | |
| Emera Inc ($EMA) | 28.5% | -0.3% | 8.3% | 31.8% | |
| TransAlta Corp ($TA) | -0.4% | -17.0% | 3.7% | 14.4% | |
| |
|---|
| Median (14 companies) | 14.2% | 0.9% | 10.9% | 11.9% | |
|---|
| Just Energy Group Inc ($JE) | | -10.1% | 13.4% | 17.4% | 10.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atco Ltd/Canada ($ACO.X) | 82.3% | 85.6% | 85.1% | 82.3% | |
| Canadian Utilities Ltd ($CU) | 76.5% | 81.0% | 80.8% | 77.7% | |
| Northland Power Inc ($NPI) | 47.7% | 52.5% | 63.7% | 61.8% | |
| Fortis Inc/Canada ($FTS) | 31.9% | 34.6% | 34.4% | 59.3% | |
| Capital Power Corp ($CPX) | 48.9% | 58.9% | 59.8% | 58.4% | |
| |
|---|
| Median (13 companies) | 42.7% | 34.6% | 37.1% | 55.0% | |
|---|
| Just Energy Group Inc ($JE) | 16.3% | 18.8% | 17.4% | 14.3% | 15.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Boralex Inc ($BLX) | 51.8% | 52.8% | 58.4% | 55.9% | |
| Northland Power Inc ($NPI) | 48.1% | 54.2% | 52.4% | 51.2% | |
| US Geothermal Inc ($GTH) | -84.0% | -129.5% | 52.9% | 49.6% | |
| Canadian Utilities Ltd ($CU) | 42.9% | 45.9% | 45.7% | 47.4% | |
| Atco Ltd/Canada ($ACO.X) | 36.7% | 39.8% | 41.0% | 41.4% | |
| |
|---|
| Median (14 companies) | 31.5% | 29.7% | 34.0% | 34.0% | |
|---|
| Just Energy Group Inc ($JE) | 6.8% | 6.4% | 4.1% | 4.3% | 3.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northland Power Inc ($NPI) | 101.7% | 84.0% | 60.2% | 238.7% | |
| Boralex Inc ($BLX) | 17.7% | 5.6% | 62.5% | 85.9% | |
| Canadian Utilities Ltd ($CU) | 43.7% | 70.7% | 66.4% | 58.5% | |
| Atco Ltd/Canada ($ACO.X) | 36.2% | 58.8% | 54.2% | 48.3% | |
| Algonquin Power & Utilities Corp ($AQN) | 22.4% | 21.7% | 23.5% | 45.9% | |
| |
|---|
| Median (14 companies) | 25.4% | 31.6% | 26.8% | 21.2% | |
|---|
| Just Energy Group Inc ($JE) | 1.1% | 2.8% | 1.3% | 0.2% | 0.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Keyera Corp ($KEY) | 13.1% | 13.8% | 12.7% | 14.3% | |
| Atco Ltd/Canada ($ACO.X) | 11.6% | 10.8% | 10.5% | 9.6% | |
| Canadian Utilities Ltd ($CU) | 10.9% | 10.0% | 9.4% | 9.2% | |
| Emera Inc ($EMA) | 6.1% | 5.8% | 5.9% | 8.4% | |
| Northland Power Inc ($NPI) | 6.5% | 6.0% | 7.4% | 7.2% | |
| |
|---|
| Median (14 companies) | 6.6% | 5.3% | 6.0% | 5.4% | |
|---|
| Just Energy Group Inc ($JE) | 146.5% | 18.6% | 6.0% | 10.6% | 17.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Atlantic Power Corp ($ATP) | 44.8x | 12.6x | 13.0x | 22.4x | |
| Boralex Inc ($BLX) | 5.9x | 6.6x | 7.6x | 12.1x | |
| Northland Power Inc ($NPI) | 5.9x | 6.4x | 5.8x | 6.9x | |
| Fortis Inc/Canada ($FTS) | 5.3x | 5.0x | 5.6x | 6.7x | |
| US Geothermal Inc ($GTH) | | | 5.2x | 5.6x | |
| |
|---|
| Median (14 companies) | 4.5x | 5.0x | 5.3x | 4.3x | |
|---|
| Just Energy Group Inc ($JE) | 2.5x | 4.3x | 7.4x | 6.4x | 3.9x |
