goeasy (GSY) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: 3.36%
• Average Volume (3M): 39.49K
• Price to Earnings (P/E): 11.3
• Beta (1Y): 0.95
• Revenue Growth: 18.04%
• EPS Growth: 2.48%
• Country: CA
• Employees: 2,600
• Sector: Financial
• Sector Strength: 75
• Industry: Financial - Credit Services
• EPS (TTM): 3.53
• Shares Outstanding: 16,068,592
• 10 Day Avg. Volume: 38,237
• 30 Day Avg. Volume: 39,487
• PEG Ratio: -0.29
• Price to Book (P/B): 1.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.25
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $204.14
• Price Target Upside: 16.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: C$194.00 ▲(10.62%Upside)

goeasy's overall stock score reflects strong financial performance and market positioning, supported by solid revenue growth and profitability. While technical indicators suggest bullish sentiment, overbought conditions present a caution. The company's valuation is appealing with a strong P/E ratio and dividend yield. Earnings call insights indicate robust growth in loan applications but highlight challenges with profitability and loan loss provisions. Overall, goeasy maintains a positive outlook but needs to address liquidity and leverage concerns.

Positive Factors

Earnings Potential

Multiple sources of upside to estimates include potential benefits from high-grading the portfolio and further stock improvements.

Share Buybacks

Goeasy has been actively buying back shares, having repurchased a significant amount of shares under the NCIB, benefiting from excess leverage capacity.

Negative Factors

Credit Performance

It remains challenging to model long-term credit performance due to the fluidity of U.S. trade policies.

Trade Uncertainty

GSY is exposed to indirect repercussions of U.S. trade uncertainty, which could impact unemployment and credit losses in Canada.

goeasy Business Overview & Revenue Model

Company Description

goeasy Ltd. (GSY) is a leading financial services company based in Canada that operates in the non-prime consumer lending market. The company specializes in providing loans and other financial products to consumers who may not have access to traditional banking services. Its core products include unsecured installment loans and secured loans, designed to meet the financial needs of customers with varying credit profiles. goeasy operates through its two main divisions: easyfinancial, which offers personal and home equity loans, and easyhome, which provides lease-to-own merchandise services.

How the Company Makes Money

goeasy makes money primarily through interest income and service charges collected on the loans it provides. The easyfinancial division is the main revenue driver, offering unsecured and secured loans with varying interest rates based on the borrower's creditworthiness. These loans generate income through interest payments and additional service fees. The easyhome division contributes to revenue through lease-to-own agreements on household merchandise, where customers make regular payments to eventually own the item. This division also collects fees and interest on these agreements. The company's earnings are further supported by its strategic partnerships with retailers and financial institutions, which help expand its customer base and enhance service offerings.

goeasy Financial Statement Overview

Summary

goeasy demonstrates robust revenue growth and profitability, driven by strong margins and efficient operations. Despite the high leverage, the company maintains a solid equity base. However, negative free cash flow and high debt levels present challenges that need to be addressed to ensure long-term stability and liquidity.

Income Statement

The company exhibits strong revenue growth, with a TTM increase of 2.28% over the previous year, continuing its upward trajectory from 2021. Gross profit margin remains robust at 69.07%, and net profit margin is healthy at 16.92%. EBIT and EBITDA margins are solid, showcasing effective cost management. However, a slight decline in net income from the previous annual period indicates potential challenges in sustaining net profitability.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 3.39, indicating significant leverage which could pose risks if not managed carefully. However, the company has maintained a reasonable equity ratio of 21.62%, suggesting a stable asset base. Return on equity is impressive at 22.87%, reflecting strong profitability relative to shareholder investment.

Cash Flow

Free cash flow is negative, indicating potential liquidity challenges, although there is an improvement in free cash flow from the previous period. The operating cash flow to net income ratio is negative, suggesting that the company is not yet converting its income into cash effectively. However, a significant portion of cash is being reinvested into the business, as evidenced by the capital expenditures.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.56B	1.52B	1.25B	1.02B	826.72M	652.92M
Gross Profit	1.08B	1.05B	851.59M	795.88M	622.03M	472.24M
EBITDA	836.63M	918.96M	591.65M	664.38M	529.15M	408.06M
Net Income	263.56M	283.11M	247.90M	140.16M	244.94M	136.50M
Balance Sheet
Total Assets	5.33B	5.19B	4.16B	3.30B	2.60B	1.50B
Cash, Cash Equivalents and Short-Term Investments	180.33M	251.38M	144.58M	32.45M	82.88M	62.95M
Total Debt	3.91B	3.69B	2.89B	2.30B	1.62B	941.65M
Total Liabilities	4.18B	3.99B	3.11B	2.43B	1.81B	1.06B
Stockholders Equity	1.15B	1.20B	1.05B	869.69M	789.91M	443.51M
Cash Flow
Free Cash Flow	-140.48M	-488.61M	-490.58M	-533.77M	-106.32M	45.74M
Operating Cash Flow	-116.64M	-469.45M	-473.22M	-505.88M	-78.88M	74.41M
Investing Cash Flow	4.07M	3.52M	-11.75M	-42.49M	-210.63M	-28.67M
Financing Cash Flow	484.24M	572.73M	566.89M	508.55M	298.94M	973.00K

goeasy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSY, the sentiment is Positive. The current price of 175.37 is above the 20-day moving average (MA) of 168.28, above the 50-day MA of 157.49, and above the 200-day MA of 162.32, indicating a bullish trend. The MACD of 4.67 indicates Negative momentum. The RSI at 69.77 is Neutral, neither overbought nor oversold. The STOCH value of 76.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GSY.

goeasy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRL	78 Outperform	C$1.42B	16.94	32.69%	1.98%	46.36%	64.29%
GSY	73 Outperform	$2.79B	11.27	23.56%	3.36%	18.04%	2.48%
AI	68 Neutral	C$552.80M	11.18	9.47%	8.00%	-1.56%	-9.70%
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
ECN	62 Neutral	C$847.25M	107.50	6.65%	1.33%	54.95%	―
FN	57 Neutral	C$2.55B	14.80	24.01%	5.87%	13.85%	-33.76%
ACD	53 Neutral	C$30.13M	―	-6.23%	―	-4.92%	68.05%

goeasy Corporate Events

goeasy Ltd. Honored as One of Canada’s Best Companies by TIME

goeasy Ltd. has been recognized on TIME Magazine’s inaugural list of Canada’s Best Companies for 2025, a testament to its strong revenue growth, employee satisfaction, and ESG performance. This recognition highlights goeasy’s commitment to building a culture of respect, performance, and opportunity, and underscores its positive trajectory in the financial services industry, potentially enhancing its reputation and stakeholder confidence.

The most recent analyst rating on (TSE:GSY) stock is a Hold with a C$230.00 price target. To see the full list of analyst forecasts on goeasy stock, see the TSE:GSY Stock Forecast page.

goeasy Ltd. Strengthens Leadership with New Senior VP Appointment

goeasy Ltd. has appointed James Obright as Senior Vice-President of Investor Relations & Capital Markets, bringing over 20 years of experience in investment banking and capital markets. This strategic move is expected to enhance goeasy’s investor engagement and support its growth initiatives in loan originations and product expansion, as the company continues to scale its operations and expand its capital base.

The most recent analyst rating on (TSE:GSY) stock is a Buy with a C$215.00 price target. To see the full list of analyst forecasts on goeasy stock, see the TSE:GSY Stock Forecast page.

goeasy Ltd. Surpasses $5 Billion Loan Portfolio Milestone

goeasy Ltd. announced it has surpassed a $5 billion consumer loan portfolio, marking a significant milestone in its growth trajectory. This achievement underscores the company’s strong market position as a leading non-prime lender in Canada, with plans to further expand its loan portfolio to between $7.35 billion and $7.75 billion by 2027. The company’s diverse range of financial products and extensive network of merchant partners have been pivotal in reaching this milestone, reflecting its commitment to providing reliable financing solutions to underserved customers.

The most recent analyst rating on (TSE:GSY) stock is a Buy with a C$215.00 price target. To see the full list of analyst forecasts on goeasy stock, see the TSE:GSY Stock Forecast page.

goeasy Ltd. Elects Board of Directors Amidst Strong Shareholder Support

goeasy Ltd. announced the election of its board of directors during the Annual General and Special Meeting of Shareholders. All nominated directors were successfully elected, reflecting strong shareholder support. This election is a significant step in reinforcing goeasy’s leadership and strategic direction as it continues to focus on providing financial services to non-prime Canadians. The company is well-positioned in the industry with a stable credit rating and a commitment to community support, having raised over $6.5 million for charitable causes.

goeasy Ltd. Reports Strong Loan Portfolio Growth Amidst Macroeconomic Challenges

goeasy Ltd. reported its first-quarter results, showcasing a 24% increase in its loan portfolio to $4.79 billion and a 10% rise in revenue to $392 million. Despite a slight decline in loan originations and a decrease in net income, the company maintained stable credit performance and improved its funding capacity to support future growth. The results reflect the resilience of goeasy’s business model amid macroeconomic uncertainties, with strategic moves to optimize product, pricing, and collections.

goeasy Ltd. Schedules Q1 2025 Financial Results Release and Conference Call

goeasy Ltd. announced it will release its first quarter 2025 financial results on May 7, 2025, followed by a conference call for analysts and investors on May 8, 2025. This announcement is part of goeasy’s ongoing efforts to maintain transparency and engagement with stakeholders, reflecting its stable financial outlook and commitment to growth in the non-prime lending market.