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Just Energy (JE) Continues to Expand Globally, Enters Japan
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Just Energy Group Inc. announced the launch of Just Energy Brand in Japan, taking a step further in its ambitions to expand globally. Just Energy is an electricity and natural gas commodities, energy efficiency solutions, and renewable energy options provider with over 1.5 million customers across North America, U.K. and Germany.
Global Expansion Plan
As a leader in the retail energy space, the company intends to take strategic initiatives to further international operation, expand retail sales channels along with investing in newer products and geographies. In fact, Just Energy has been undertaking steps toward fulfilling its strategy of delivering value services to its customers through energy management solutions. Additionally, its growth plans centre around increasing customer base, geographic expansion, channel augmentation, strategic acquisitions, new products and structures.
Notably, the company began expansion in U.K. under the Hudson Energy brand in 2012, followed by the launch of Green Star Energy in 2013. Further, it expanded presence by venturing into Germany in 2016.In the month of September, the company launched its brand in Ireland. (Read More: Just Energy Launches Brand in Ireland, Expands Globally)
With the company’s foray in Japan, management believes that it is well poised with core competencies and product offerings to serve the high-growth market of over 85 million customers in Japan.
The company witnessed gross retail channel expansions (RCEs) additions of 310,000, an increase of 58% year over year and 27% sequentially. It witnessed growth in Net RCE additions of 11,000, reflecting an increase of 86,000 RCEs year over year and 146,000 RCEs sequentially. Further, the company observed record low 11% attrition for trailing 12 months with improvements in both consumer and commercial attrition. The company’s total customer count increased 7% to nearly 1.6 million total customers since fiscal 2017 year end during the second quarter of fiscal 2018.
Our View
The launch of Just Energy’s brand in Japan marks the company’s first foray into Asia, and third geographic venture outside North America in the past 12 months. Toward this, it has made significant investments during the second quarter of fiscal 2018 to support its strategy of pursuing growth through better products and expansion. Toward this, it spent approximately $8 million in new markets and channel development during the quarter. The company also intends to penetrate newer geographies, as evidenced by its expanding global operations.
We expect its entry into the largest deregulated energy market in the world to not only aid the company gain from geographic brand expansion strategy but also through its diversified business model.
Price Movement
Just Energy has underperformed the industry in the last month. The company’s shares lost 20.6%, much wider than the industry’s gain of 0.6%.
This can be attributed to the company’s second-quarter 2018 fiscal results that were impacted due to abnormally mild summer weather in North America. This was further accentuated by reduced demand and destruction caused by Hurricane Harvey which hurt the top line.
Chesapeake Utilities posted third-quarter 2017 earnings from continuing operations of 42 cents per share, beating the Zacks Consensus Estimate of 35 cents by 20.00%. The company’s 2017 estimates increased to $2.85 per share from $2.83 per share in the last 30 days.
ONE Gas posted third-quarter 2017 earnings from continuing operations of 36 cents per share, beating the Zacks Consensus Estimate of 28 cents by 28.57 %. The company’s 2017 estimates increased to $3.01 per share from $2.99 per share in the last 30 days.
Spire Inc. posted third-quarter 2017 reported a loss of 22 cents per share, narrower the Zacks Consensus Estimate loss of 27 cents by 18.52%. The company’s 2017 estimates increased to $3.71 per share from $3.70 per share in the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Just Energy (JE) Continues to Expand Globally, Enters Japan
Just Energy Group Inc. announced the launch of Just Energy Brand in Japan, taking a step further in its ambitions to expand globally. Just Energy is an electricity and natural gas commodities, energy efficiency solutions, and renewable energy options provider with over 1.5 million customers across North America, U.K. and Germany.
Global Expansion Plan
As a leader in the retail energy space, the company intends to take strategic initiatives to further international operation, expand retail sales channels along with investing in newer products and geographies. In fact, Just Energy has been undertaking steps toward fulfilling its strategy of delivering value services to its customers through energy management solutions. Additionally, its growth plans centre around increasing customer base, geographic expansion, channel augmentation, strategic acquisitions, new products and structures.
Notably, the company began expansion in U.K. under the Hudson Energy brand in 2012, followed by the launch of Green Star Energy in 2013. Further, it expanded presence by venturing into Germany in 2016.In the month of September, the company launched its brand in Ireland. (Read More: Just Energy Launches Brand in Ireland, Expands Globally)
With the company’s foray in Japan, management believes that it is well poised with core competencies and product offerings to serve the high-growth market of over 85 million customers in Japan.
The company witnessed gross retail channel expansions (RCEs) additions of 310,000, an increase of 58% year over year and 27% sequentially. It witnessed growth in Net RCE additions of 11,000, reflecting an increase of 86,000 RCEs year over year and 146,000 RCEs sequentially. Further, the company observed record low 11% attrition for trailing 12 months with improvements in both consumer and commercial attrition. The company’s total customer count increased 7% to nearly 1.6 million total customers since fiscal 2017 year end during the second quarter of fiscal 2018.
Our View
The launch of Just Energy’s brand in Japan marks the company’s first foray into Asia, and third geographic venture outside North America in the past 12 months. Toward this, it has made significant investments during the second quarter of fiscal 2018 to support its strategy of pursuing growth through better products and expansion. Toward this, it spent approximately $8 million in new markets and channel development during the quarter. The company also intends to penetrate newer geographies, as evidenced by its expanding global operations.
We expect its entry into the largest deregulated energy market in the world to not only aid the company gain from geographic brand expansion strategy but also through its diversified business model.
Price Movement
Just Energy has underperformed the industry in the last month. The company’s shares lost 20.6%, much wider than the industry’s gain of 0.6%.
This can be attributed to the company’s second-quarter 2018 fiscal results that were impacted due to abnormally mild summer weather in North America. This was further accentuated by reduced demand and destruction caused by Hurricane Harvey which hurt the top line.
Zacks Rank & Key Picks
Just Energy currently carries a Zacks Rank #4 (Sell). Investors can consider better-ranked stocks from the same space such as Chesapeake Utilities Corporation (CPK - Free Report) , ONE Gas, Inc. (OGS - Free Report) and Spire Inc. (SR - Free Report) , all of which carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chesapeake Utilities posted third-quarter 2017 earnings from continuing operations of 42 cents per share, beating the Zacks Consensus Estimate of 35 cents by 20.00%. The company’s 2017 estimates increased to $2.85 per share from $2.83 per share in the last 30 days.
ONE Gas posted third-quarter 2017 earnings from continuing operations of 36 cents per share, beating the Zacks Consensus Estimate of 28 cents by 28.57 %. The company’s 2017 estimates increased to $3.01 per share from $2.99 per share in the last 30 days.
Spire Inc. posted third-quarter 2017 reported a loss of 22 cents per share, narrower the Zacks Consensus Estimate loss of 27 cents by 18.52%. The company’s 2017 estimates increased to $3.71 per share from $3.70 per share in the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>