Just Energy's business primarily involves the sale of natural gas and/or electricity to residential and commercial customers under long-term fixed-price, price-protected or
variable-priced contracts and green energy products. By fixing the price of natural gas or electricity under its fixed-price or price-protected program contracts for a period of up
to five years, Just Energy's customers offset their exposure to changes in the price of these essential commodities. Variable rate products allow customers to maintain competitive
rates while retaining the ability to lock into a fixed price at their discretion. Just Energy, which commenced business in 1997, derives its margin or gross profit from the
difference between the price at which it is able to sell the commodities to its customers and the related price at which it purchases the associated volumes from its suppliers.
Just Energy also offers "green" products through its JustGreen and JustClean programs. The electricity JustGreen product offers the customer the option of having all or a portion of his or her electricity sourced from renewable green sources such as wind, run of the river hydro or biomass. The gas JustGreen product offers carbon offset credits which will allow the customer to reduce or eliminate the carbon footprint of their home or business. JustClean products allow customers in certain jurisdictions to offset their carbon footprint without purchasing commodity from Just Energy. JustClean can be offered in all states and provinces and is not dependent on energy deregulation. Management believes that the JustGreen and JustClean products will not only add to profits, but also increase sales receptivity and improve renewal rates.
In addition, through National Home Services, Just Energy sells and rents high efficiency and tankless water heaters, air conditioners and furnaces to Ontario residents. Through its subsidiary Terra Grain Fuels, Just Energy produces and sells wheat-based ethanol. Just Energy has also launched, Hudson Solar, a solar project development platform in New Jersey.
Why Invest in JE - Growth and Diversification
Why Invest in Just Energy?
Just Energy is a market leader in a growing, relatively new industry - deregulated utility services, operating across 6 Canadian provinces and in 13 states.
The Company has diversified revenue and profit sources from a variety of energy related products sold to a range of customer groups across North America.
Cash flow has steadily grown in the past based on the spread built into carefully matched customer contracts and underlying supply.
Just Energy has generated predictable, reliable operating results regardless of weather or economic conditions.
Very high return on invested capital allows Just Energy to grow and maintain a high payout ratio and has resulted in a current dividend yield of more than 9%.
Recent trading has seen greater liquidity with NYSE listing and broadening of US investor base.
Just Energy offers a unique combination of growth and income to investors.