JE - Just Energy: Sustainability Still An Issue
Investment Thesis
Just Energy (JE) (TSX:JE) delivered solid EBITDA growth in its Q3 Fiscal 2019 earnings release. The company saw its gross margin expanded considerably for the second quarter in a row thanks to its strategy of raising prices. Nevertheless, Just Energy saw two straight quarters of net customer loss since its Q1 Fiscal 2019. We are concerned about this because its EBITDA growth may not be sustainable unless we also see customer base growth. Although the company has several initiatives to reduce its costs, we think it is important to see more