goeasy Ltd (TSE:GSY)
TSX:GSY
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goeasy
(TSX:GSY)
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Rating:43Neutral
Price Target:
C$34.00
▲(4.65% Upside)
Action:ReiteratedDate:04/04/26
The score is held down primarily by weakened financial performance (2025 net loss, high and rising leverage, and sustained negative operating/free cash flow) and a bearish technical trend. Earnings-call details provide some offset via an actionable remediation plan and expected 2026 credit/yield improvement, while valuation support is mixed because the negative P/E and dividend suspension reduce confidence in the headline high yield.
Positive Factors
Strong multi-year loan and revenue growth
A near‑20% year‑over‑year expansion in gross consumer loans and multiyear revenue growth to ~C$1.7B reflect durable demand and scale in underwriting and origination. Persistent portfolio scale supports diversified revenue streams, operating leverage, and the capacity to absorb incremental fixed costs over several quarters.
Negative Factors
High and rising leverage
A more than doubling of leverage in five years materially reduces financial flexibility for a credit-originator. Elevated debt increases refinancing and covenant risk if credit costs persist, limits ability to fund growth organically, and heightens sensitivity to funding‑market stress over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong multi-year loan and revenue growth
A near‑20% year‑over‑year expansion in gross consumer loans and multiyear revenue growth to ~C$1.7B reflect durable demand and scale in underwriting and origination. Persistent portfolio scale supports diversified revenue streams, operating leverage, and the capacity to absorb incremental fixed costs over several quarters.
Read all positive factors
goeasy (GSY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$520.90M
Dividend Yield4.48%
Average Volume (3M)140.74K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue Growth13.69%
EPS Growth-16.06%
CountryCA
Employees2,600
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-8.93
Shares Outstanding16,032,719
10 Day Avg. Volume123,373
30 Day Avg. Volume140,740
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)2.55
Price to Sales (P/S)1.28
P/FCF Ratio-2.48
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$42.04Price Target Upside29.40% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)5.73
Revenue Forecast (FY)C$1.64B
goeasy Business Overview & Revenue Model
Company Description
goeasy Ltd. provides non-prime leasing and lending services to consumers in Canada. The company operates through two segments, Easyfinancial and Easyhome. The Easyfinancial segment provides unsecured and real estate secured installment loans; pers...
How the Company Makes Money
goeasy primarily makes money by originating and servicing consumer credit to non-prime borrowers and earning finance income over the life of those contracts. The core revenue stream is interest and fee-based income from its loan portfolio, generat...
goeasy Earnings Call Summary
Earnings Call Date:Mar 31, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 12, 2026
Earnings Call Sentiment Neutral
Balanced: the company demonstrated meaningful strengths (near‑20% loan book growth, robust cash generation, a healthy direct-to-consumer business and immediate remedial actions including cost savings and lender amendments), but also faces significant near‑term headwinds centered on the LendCare merchant portfolio (large incremental charge-offs of ~$178M, a $160M goodwill impairment, elevated allowance increases, and control/reporting issues). Management has a clear corrective plan and liquidity flexibility, yet the material one-time losses and the need to rebuild credit discipline leave outlook risk elevated before improvements are realized.Positive Updates
Balance Sheet and Funding Stability Actions
Negotiated covenant amendments with secured lenders; management states facilities remain available and, under current assumptions, no new equity is required to comply with revised covenants.
Negative Updates
Significant LendCare Charge-offs and Goodwill Impairment
LendCare incurred an incremental $178 million of loan charge-offs in Q4 2025 and management recorded a $160 million goodwill impairment related to LendCare, materially impacting Q4 and full-year profitability.
Read all updates
Q4-2025 Updates
Positive
Negative
Balance Sheet and Funding Stability Actions
Negotiated covenant amendments with secured lenders; management states facilities remain available and, under current assumptions, no new equity is required to comply with revised covenants.
Read all positive updates
Company Guidance
The company guided that Q1 2026 ending gross loans receivable should be $5.3–$5.4 billion (down from $5.5B at year‑end 2025), with consumer loan yield of 27–28% and Q1 net charge‑offs of 17.5–18.5%; for full‑year 2026 management expects gross loans receivable to decline in H1 then resume growth in H2, yield to improve through the year as interest charge‑offs decline, and net charge‑offs to average in the mid‑teens (improving over the quarters). Management also reiterated strong cash generation (~$0.5B per quarter / roughly $2B per year; $2.1B free cash flow last year), said no new equity is required under current assumptions, suspended dividends and buybacks, negotiated covenant amendments (revolver available July 1; securitization access expected by end‑Q2/early‑Q3 pending audit and backup servicer change), will repay May notes from cash, and expects to realize roughly $30M of annualized run‑rate savings after a ~9% workforce reduction; Q4 credit‑metric context included a $72M net allowance increase, $178M incremental charge‑offs, a $160M goodwill impairment, a Q4 provision rate of 9.6% (from 8.4% in Q3), and LendCare net charge‑offs of 40.6% (vs easyfinancial unsecured ~12.1%, secured home equity ~1%).goeasy Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
38
Negative
Cash Flow
30
Negative
| Breakdown | Mar 2026 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.70B | 1.52B | 1.25B | 1.02B | 826.72M |
| Gross Profit | 1.17B | 1.05B | 851.59M | 708.26M | 561.49M |
| EBITDA | 1.02B | 918.96M | 740.46M | 603.86M | 472.32M |
| Net Income | -178.37M | 283.11M | 247.90M | 140.16M | 244.94M |
Balance Sheet | |||||
| Total Assets | 5.76B | 5.19B | 4.16B | 3.30B | 2.60B |
| Cash, Cash Equivalents and Short-Term Investments | 99.46M | 251.38M | 120.38M | 32.45M | 82.88M |
| Total Debt | 4.63B | 3.69B | 2.89B | 2.45B | 1.91B |
| Total Liabilities | 4.91B | 3.99B | 3.11B | 2.43B | 1.81B |
| Stockholders Equity | 850.42M | 1.20B | 1.05B | 869.69M | 789.91M |
Cash Flow | |||||
| Free Cash Flow | -876.81M | -479.45M | -490.58M | -533.77M | -106.32M |
| Operating Cash Flow | -854.62M | -469.45M | -473.22M | -505.88M | -78.88M |
| Investing Cash Flow | -22.20M | 3.52M | -11.75M | -42.49M | -210.63M |
| Financing Cash Flow | 781.93M | 572.73M | 566.89M | 508.55M | 298.94M |
goeasy Technical Analysis
Negative
32.49
Price Trends
84.93
Negative
106.57
Negative
141.87
Negative
Market Momentum
-14.49
Negative
21.55
Positive
10.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSY, the sentiment is Negative. The current price of 32.49 is below the 20-day moving average (MA) of 36.67, below the 50-day MA of 84.93, and below the 200-day MA of 141.87, indicating a bearish trend. The MACD of -14.49 indicates Negative momentum. The RSI at 21.55 is Positive, neither overbought nor oversold. The STOCH value of 10.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GSY.
goeasy Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$956.88M | 11.86 | 11.93% | 7.33% | 7.74% | -31.96% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$4.11B | 12.46 | 8.72% | 2.09% | -7.50% | -34.45% | |
64 Neutral | C$674.42M | 15.26 | 5.89% | 0.49% | 3.31% | -39.12% | |
61 Neutral | C$766.75M | 11.73 | 23.69% | 3.01% | 38.93% | 38.14% | |
51 Neutral | C$1.80B | -21.78 | 2.86% | 4.67% | -11.26% | ― | |
43 Neutral | C$520.90M | -12.17 | 18.88% | 4.48% | 13.69% | -16.06% |
* Financial Sector Average
TSE:GSY
goeasy
32.49
-115.24
-78.01%
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goeasy Corporate Events
Business Operations and StrategyFinancial Disclosures
Goeasy Swings to Loss on LendCare Hit and Restatements Despite Loan Growth
Negative
Apr 1, 2026
Goeasy reported a 20% year‑end increase in its consumer loan portfolio to $5.51 billion and a 17% rise in quarterly loan originations to $951.5 million, but revenue in the fourth quarter of 2025 was essentially flat at $406.3 million as lowe...
Business Operations and StrategyPrivate Placements and Financing
goeasy Secures Amended Funding Deals, Preserving Liquidity Amid Tighter Terms
Neutral
Mar 24, 2026
goeasy Ltd. has secured amended agreements with lenders backing its main credit and securitization facilities, ensuring continued access to funding while waiving certain financial covenants for the fourth quarter of 2025 and adjusting terms to ref...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial DisclosuresRegulatory Filings and Compliance
goeasy takes $178 million LendCare hit, suspends dividend amid credit strain
Negative
Mar 10, 2026
goeasy Ltd. warned of a substantial deterioration in credit performance at its LendCare unit, flagging an incremental Q4 2025 charge-off of about $178 million on a $5.5 billion loan book, an additional $55 million write-down of interest and fees, ...
Financial Disclosures
goeasy sets March dates for Q4 2025 earnings release and investor call
Neutral
Feb 23, 2026
goeasy Ltd., one of Canada’s leading non‑prime consumer lenders, will release its fourth‑quarter 2025 financial results after markets close on March 25, 2026. The company will follow with an earnings conference call and webcast f...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.