JE - Just Energy: This 9.4%-Yielding Stock May Need To Cut Its Dividend
Investment Thesis
Just Energy (JE) ((TSX:JE)) delivered a mediocre quarter with a 3% decline in its base EBITDA. The company saw three straight quarters of net customer loss since its Q1 F2019. On the other hand, Just Energy’s payout ratio remains high and it also has a high debt to EBITDA ratio. This may mean a dividend cut some point down the road in order for the company to improve its balance sheet. Despite its 9.4%-yielding dividend, we think investors may want to wait for a clear signal of a turnaround.
Data by