Just Energy Group Inc ROIC jumped on 125 pp from 17.9% to 143% in 2016 and Revenue increased on 5.4%
18.05.2016 • About Just Energy Group Inc (
$JE) • By InTwits
Just Energy Group Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Just Energy Group Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.9%.
- The company has highly profitable business model: ROIC is at 142.7%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Just Energy Group Inc ($JE) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,655 | 3,011 | 3,535 | 3,896 | 4,106 | 5.4% |
| Gross Profit | 500 | 524 | 506 | 600 | 702 | 17.0% |
| SG&A | 291 | 358 | 307 | 379 | 428 | 12.7% |
| EBITDA | 169 | 123 | 151 | 151 | 201 | 32.6% |
| Net Income | -127 | 530 | 136 | -447 | 65 | |
Balance Sheet
|
|---|
| Cash | 53 | 38 | 20 | 79 | 128 | 61.9% |
| Short Term Debt | 99 | 162 | 52 | 0 | 0 | -100.0% |
| Long Term Debt | 679 | 795 | 930 | 676 | 661 | -2.4% |
Cash flow
|
|---|
| Capex | 75 | 38 | 7 | 6 | 7 | 19.6% |
Ratios
|
|---|
| Revenue growth | -10.1% | 13.4% | 17.4% | 10.2% | 5.4% | |
| EBITDA growth | -15.2% | -27.0% | 22.5% | 0.1% | 32.6% | |
| Gross Margin | 18.8% | 17.4% | 14.3% | 15.4% | 17.1% | 1.7% |
| EBITDA Margin | 6.4% | 4.1% | 4.3% | 3.9% | 4.9% | 1.0% |
| Net Income Margin | -4.8% | 17.6% | 3.8% | -11.5% | 1.6% | 13.0% |
| SG&A, % of revenue | 11.0% | 11.9% | 8.7% | 9.7% | 10.4% | 0.7% |
| CAPEX, % of revenue | 2.8% | 1.3% | 0.2% | 0.1% | 0.2% | 0.0% |
| ROIC | 18.6% | 6.0% | 10.6% | 17.9% | 142.7% | 124.8% |
| Net Debt/EBITDA | 4.3x | 7.4x | 6.4x | 3.9x | 2.7x | -1.3x |
Just Energy Group Inc ($JE) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 933 | 1,087 | 1,010 | 1,076 | 13.6% | 18.4% | 6.6% | -11.1% |
| EBITDA | 32 | 42 | 56 | 72 | 53.2% | 70.4% | 35.7% | 10.0% |
| Net Income | 127 | -92 | 6 | 24 | | | | |
Balance Sheet
|
|---|
| Cash | 105 | 89 | 91 | 128 | 318.6% | 197.2% | 114.7% | 61.9% |
| Short Term Debt | 0 | 0 | 0 | 0 | -100.0% | -100.0% | -100.0% | -100.0% |
| Long Term Debt | 676 | 685 | 695 | 661 | -12.6% | -15.6% | 5.4% | -2.4% |
Ratios
|
|---|
| Gross Margin | 16.2% | 15.4% | 17.8% | 19.0% | 1.1% | 0.9% | 2.0% | 2.9% |
| EBITDA Margin | 3.4% | 3.8% | 5.5% | 6.7% | 0.9% | 1.2% | 1.2% | 1.3% |
| Net Income Margin | 13.6% | -8.4% | 0.6% | 2.2% | 18.2% | 6.2% | 22.6% | 7.6% |
Revenue and profitability
The company's Revenue increased on 5.4%. Revenue growth showed slow down in FY16Q4 - it was -11.1% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 9.0 pp from 38.7% to 47.7% in 2016.
Gross Margin increased slightly on 1.7 pp from 15.4% to 17.1% in FY2016. SG&A as a % of Revenue increased slightly on 0.68 pp from 9.7% to 10.4% in FY2016.
Net Income marign surged on 13.0 pp from -11.5% to 1.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.17%. Just Energy Group Inc showed small CAPEX/Revenue decline of 1.1 pp from 1.3% in FY2013 to 0.17% in FY2016. For the last three years the average CAPEX/Revenue was 0.17%.
Leverage (Debt)
Debt level is 2.7x Net Debt / EBITDA and 3.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 3.9x to 2.7x in FY2016. Debt decreased on 2.4% while cash jumped on 61.9%.
Management team
Deborah Merril "Deb" is a Just Energy Group Inc's CEO. Deborah Merril "Deb" is a founder and has spent 4 years at the company. Patrick D Mccullough "Pat" is a The company's CFO. Patrick D Mccullough "Pat" has spent 4 years 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Emera Inc ($EMA) | | 8.3% | 31.8% | -5.1% | 53.3% |
| Northland Power Inc ($NPI) | | 54.1% | 36.4% | -4.2% | 50.9% |
| Boralex Inc ($BLX) | | -6.7% | 13.5% | 37.1% | 11.7% |
| Algonquin Power & Utilities Corp ($AQN) | | 93.6% | 39.4% | 9.2% | 6.6% |
| TransAlta Corp ($TA) | | 3.7% | 14.4% | -13.6% | 5.7% |
| |
|---|
| Median (14 companies) | | 10.9% | 11.9% | -7.2% | 1.1% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Atco Ltd/Canada ($ACO.X) | 85.6% | 85.1% | 82.3% | 85.0% | 88.8% |
| Canadian Utilities Ltd ($CU) | 81.0% | 80.8% | 77.7% | 81.0% | 86.6% |
| Northland Power Inc ($NPI) | 52.5% | 63.7% | 61.8% | 69.0% | 82.4% |
| Fortis Inc/Canada ($FTS) | 34.6% | 34.4% | 59.3% | 61.7% | 65.8% |
| Capital Power Corp ($CPX) | 58.9% | 59.8% | 58.4% | 61.4% | 65.4% |
| |
|---|
| Median (12 companies) | 34.6% | 37.1% | 55.0% | 59.0% | 58.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northland Power Inc ($NPI) | 54.2% | 52.4% | 51.2% | 57.5% | 68.8% |
| Canadian Utilities Ltd ($CU) | 45.9% | 45.7% | 47.4% | 45.8% | 53.5% |
| Atco Ltd/Canada ($ACO.X) | 39.8% | 41.0% | 41.4% | 38.7% | 47.7% |
| TransAlta Corp ($TA) | 27.3% | 34.0% | 39.5% | 33.2% | 47.6% |
| Algonquin Power & Utilities Corp ($AQN) | 26.1% | 29.5% | 26.7% | 32.5% | 39.3% |
| |
|---|
| Median (12 companies) | 29.7% | 34.0% | 34.0% | 33.6% | 35.4% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northland Power Inc ($NPI) | 84.0% | 60.2% | 238.7% | 265.9% | 148.0% |
| Algonquin Power & Utilities Corp ($AQN) | 21.7% | 23.5% | 45.9% | 19.9% | 37.0% |
| Canadian Utilities Ltd ($CU) | 70.7% | 66.4% | 58.5% | 47.2% | 35.4% |
| Atco Ltd/Canada ($ACO.X) | 58.8% | 54.2% | 48.3% | 39.6% | 33.1% |
| Caribbean Utilities Co Ltd ($CUP.U) | 13.8% | 13.0% | 17.0% | 41.3% | 29.2% |
| |
|---|
| Median (12 companies) | 31.6% | 26.8% | 21.2% | 21.2% | 26.9% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Keyera Corp ($KEY) | 13.8% | 12.7% | 14.3% | 12.6% | 10.5% |
| Atco Ltd/Canada ($ACO.X) | 10.8% | 10.5% | 9.6% | 5.6% | 8.1% |
| Canadian Utilities Ltd ($CU) | 10.0% | 9.4% | 9.2% | 5.9% | 8.0% |
| Northland Power Inc ($NPI) | 6.0% | 7.4% | 7.2% | 5.3% | 7.3% |
| Caribbean Utilities Co Ltd ($CUP.U) | 5.8% | 6.3% | 6.1% | 5.7% | 5.8% |
| |
|---|
| Median (14 companies) | 4.9% | 5.9% | 5.3% | 5.3% | 4.7% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Atlantic Power Corp ($ATP) | 12.6x | 13.0x | 22.4x | 251.1x | 24.3x |
| Northland Power Inc ($NPI) | 6.4x | 5.8x | 6.9x | 11.1x | 7.8x |
| Boralex Inc ($BLX) | 6.6x | 7.6x | 12.1x | 9.0x | |
| GWR Global Water Resources Corp ($GWR) | | | | 6.3x | |
| TransAlta Corp ($TA) | 6.9x | 5.5x | 3.9x | 5.9x | 3.6x |
| |
|---|
| Median (14 companies) | 5.0x | 5.3x | 4.3x | 5.1x | 4.4x |
|---|
