goeasy (GSY) AI Stock Analysis

• Market Cap: C$1.96B
• Dividend Yield: 4.54%
• Average Volume (3M): 160.69K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.28
• Revenue Growth: 13.69%
• EPS Growth: -16.06%
• Country: CA
• Employees: 2,600
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 4.12
• Shares Outstanding: 16,026,155
• 10 Day Avg. Volume: 171,168
• 30 Day Avg. Volume: 160,691
• PEG Ratio: 0.80
• Price to Book (P/B): 2.37
• Price to Sales (P/S): 1.87
• P/FCF Ratio: -5.94
• 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: C$199.82
• Price Target Upside: 63.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 16.46
• Revenue Forecast (FY): C$1.70B

• Rating: 63 Neutral
• Price Target: C$134.00 ▲(9.58% Upside)

goeasy's overall stock score is driven by strong valuation metrics and positive earnings call highlights, such as record revenue and loan book growth. However, financial performance concerns, including high leverage and negative cash flows, along with bearish technical indicators, weigh on the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for goeasy's financial products, enhancing its market position and supporting long-term business expansion.

Loan Book Growth

The robust loan book growth reflects goeasy's ability to attract new customers and expand its lending portfolio, which is crucial for sustained revenue generation.

Operational Efficiency

Strong operational efficiency allows goeasy to maximize profitability and reinvest in growth initiatives, supporting long-term financial health.

Negative Factors

High Leverage

High leverage increases financial risk and can limit flexibility in adverse market conditions, potentially impacting goeasy's long-term stability.

Negative Cash Flows

Negative cash flows indicate challenges in generating cash from operations, which could constrain goeasy's ability to fund growth and meet financial obligations.

EPS Decline

The decline in EPS suggests profitability challenges, which may affect investor confidence and the company's ability to sustain dividend payouts.

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; personal, home equity, and auto loans; point-of-sale and small business financing; and value-added services. The Easyhome segment leases household furniture, appliances, electronics, computers, and unsecured lending products to retail consumers. As of December 31, 2021, it operated 294 easyfinancial locations that include 8 kiosks, as well as 158 easyhome stores that include 34 franchises. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was incorporated in 1990 and is headquartered in Mississauga, Canada

How the Company Makes Money

goeasy generates revenue primarily through interest income from the loans it provides, fees associated with leasing arrangements, and retail financing services. The company offers personal loans with higher interest rates compared to traditional financial institutions, which contributes significantly to its revenue. Additionally, goeasy earns fees from its leasing services, where customers pay for the rental of furniture and appliances, often leading to long-term contracts. The company's strategic partnerships with retailers for point-of-sale financing also create an important revenue stream, allowing customers to finance purchases directly at the point of sale. Overall, the combination of high-interest loan products, leasing fees, and retail financing services forms the core of goeasy's revenue model.

goeasy Financial Statement Overview

Summary

goeasy demonstrates strong revenue growth and profitability, with a TTM revenue growth rate of 2.6% and a gross profit margin of 69.08%. However, high leverage with a debt-to-equity ratio of 3.39 and negative cash flows present potential risks. The company needs to manage debt levels and improve cash flow for long-term stability.

Income Statement

goeasy has demonstrated consistent revenue growth with a TTM revenue growth rate of 2.6%. The company maintains strong profitability with a gross profit margin of 69.08% and a net profit margin of 16.92% in the TTM period. However, there is a slight decline in net profit margin compared to the previous year. The EBIT and EBITDA margins remain robust, indicating efficient operations.

Balance Sheet

The company's debt-to-equity ratio has increased to 3.39 in the TTM period, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is strong at 22.47%, reflecting effective use of equity to generate profits. However, the high leverage may impact financial stability.

Cash Flow

goeasy's cash flow situation is concerning, with negative operating and free cash flows in the TTM period. Despite a significant increase in free cash flow growth, the negative operating cash flow coverage ratio indicates challenges in covering net income with operating cash flow. The free cash flow to net income ratio is positive, suggesting some ability to generate cash relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.66B	1.52B	1.25B	1.02B	826.72M	652.92M
Gross Profit	1.24B	1.05B	851.59M	708.26M	561.49M	429.68M
EBITDA	861.41M	918.96M	740.46M	603.86M	472.32M	364.99M
Net Income	232.86M	283.11M	247.90M	140.16M	244.94M	136.50M
Balance Sheet
Total Assets	6.20B	5.19B	4.16B	3.30B	2.60B	1.50B
Cash, Cash Equivalents and Short-Term Investments	501.91M	251.38M	120.38M	32.45M	82.88M	62.95M
Total Debt	4.72B	3.69B	2.89B	2.45B	1.91B	941.65M
Total Liabilities	4.97B	3.99B	3.11B	2.43B	1.81B	1.06B
Stockholders Equity	1.23B	1.20B	1.05B	869.69M	789.91M	443.51M
Cash Flow
Free Cash Flow	-199.28M	-479.45M	-490.58M	-533.77M	-106.32M	45.74M
Operating Cash Flow	-175.07M	-469.45M	-473.22M	-505.88M	-78.88M	74.41M
Investing Cash Flow	-474.08M	3.52M	-11.75M	-42.49M	-210.63M	-28.67M
Financing Cash Flow	1.00B	572.73M	566.89M	508.55M	298.94M	973.00K

goeasy Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 122.28
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 122.28 is below the 20-day moving average (MA) of 126.48, below the 50-day MA of 143.79, and below the 200-day MA of 161.80, indicating a bearish trend. The MACD of -5.58 indicates Negative momentum. The RSI at 35.33 is Neutral, neither overbought nor oversold. The STOCH value of 19.90 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRL	79 Outperform	C$996.45M	11.22	34.20%	3.06%	38.93%	38.14%
AI	68 Neutral	C$526.75M	10.44	9.72%	8.06%	-13.69%	-1.60%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
GSY	63 Neutral	C$1.96B	8.71	18.88%	4.54%	13.69%	-16.06%
ECN	60 Neutral	C$779.72M	-3,462.50	5.73%	1.32%	27.37%	―
FN	60 Neutral	C$2.88B	15.67	27.73%	6.40%	24.34%	13.13%
ACD	44 Neutral	C$25.68M	-5.30	-8.15%	―	-19.88%	26.76%

goeasy Corporate Events

goeasy Ltd. Announces CEO Transition Amid Health-Related Departure

goeasy Ltd. announced that CEO Dan Rees will step down due to health reasons, with Patrick Ens, current President of easyfinancial, set to take over as CEO effective January 1, 2026. Ens, who joined goeasy in 2024, has been recognized for his strategic leadership and expertise in consumer lending, positioning him as a strong successor. This leadership transition is expected to maintain the company’s growth trajectory and long-term ambition to become a leading non-prime lender in Canada.

goeasy’s Patrick Ens Joins Canadian Lenders Association Board

goeasy Ltd. announced the appointment of Patrick Ens, President of easyfinancial, to the Board of Directors of the Canadian Lenders Association (CLA). This appointment reflects goeasy’s ongoing commitment to leadership within the CLA, aiming to enhance responsible and inclusive lending in Canada. Patrick Ens brings extensive experience in consumer credit, reinforcing goeasy’s influence in shaping policies and promoting financial inclusion. The CLA’s Board aims to unite various financial entities to advance financial literacy and an inclusive credit economy, which could further strengthen goeasy’s industry positioning and stakeholder relations.

goeasy Ltd. Achieves Record Revenue Despite Economic Challenges

goeasy Ltd. reported strong third-quarter results with a 13% increase in loan originations to $946 million and a 24% growth in its loan portfolio to $5.44 billion. Despite a challenging economic climate, the company achieved a record revenue of $440 million, up 15% from the previous year. However, net income decreased by 61% due to a non-cash fair value change on prepayment options related to notes payable. The company remains optimistic about its long-term potential, supported by increased provisions and a focus on cash collections amid persistent macroeconomic challenges.

goeasy Ltd. Renews $1.4 Billion Securitization Facility

goeasy Ltd. announced the renewal of its revolving securitization warehouse facility, maintaining its capacity at $1.4 billion with similar terms. The facility, backed by consumer loans, involves a lending syndicate of three large Canadian banks and has a new maturity date set for October 30, 2026. The renewal ensures goeasy’s continued ability to support its financial services offerings, reinforcing its position in the consumer lending market and providing stability for its stakeholders.

goeasy Ltd. Schedules Q3 2025 Financial Results Release and Conference Call

goeasy Ltd. announced it will release its third quarter 2025 financial results on November 5, 2025, followed by a conference call for analysts and investors on November 6, 2025. This announcement is part of goeasy’s ongoing efforts to maintain transparency with stakeholders and could potentially impact its market positioning by providing insights into its financial performance and strategic direction.

goeasy Ltd. Appoints Felix Wu as Interim CFO Amid Leadership Transition

goeasy Ltd. has appointed Felix Wu as the Interim Chief Financial Officer, following the announcement of current CFO Hal Khouri’s upcoming departure. Wu brings over 20 years of financial and operational experience, particularly in non-prime lending, and will oversee year-end reporting and the first quarter of 2026. This transition aims to ensure continuity in goeasy’s financial leadership as the company conducts a comprehensive search for a permanent CFO. Wu’s appointment is expected to support goeasy’s ongoing progress and stability, reinforcing its position in the consumer lending industry.

goeasy Ltd. Denies Claims in Misleading Short Seller Report

goeasy Ltd. has responded to a misleading short seller report by Jehoshaphat Research, which has taken a short position in goeasy’s shares. The company refutes the report’s claims, emphasizing its confidence in the quality of its consumer loan portfolio and its commitment to transparency and disciplined risk management. goeasy highlights its financial strength, with a provision for future loan losses of over $400 million and significant revenues and net principal payments in the first half of the year. The company reaffirms its guidance and cautions shareholders against making decisions based on the short seller report.

goeasy Ltd. Announces CFO Transition Amidst Continued Growth

goeasy Ltd. announced the departure of its Chief Financial Officer, Hal Khouri, who will leave after the third quarter reporting in November 2025 to pursue a new opportunity outside Canada. Khouri has been pivotal in shaping the company’s financial strategy and enhancing shareholder value since joining in 2019. The company has initiated a search for a permanent successor and is making progress in appointing an interim CFO to ensure a smooth transition. This leadership change is expected to maintain goeasy’s strategic direction and continued growth.