goeasy (GSY) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 3.52%
• Average Volume (3M): 41.48K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.97
• Revenue Growth: 18.04%
• EPS Growth: 2.48%
• Country: CA
• Employees: 2,600
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Credit Services
• EPS (TTM): 3.53
• Shares Outstanding: 16,068,592
• 10 Day Avg. Volume: 38,745
• 30 Day Avg. Volume: 41,485
• 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: $204.15
• Price Target Upside: 23.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 77 Outperform
• Price Target: C$177.00 ▲(7.36%Upside)

goeasy Ltd.'s robust financial performance, attractive valuation, and strategic milestones position it well for growth. However, high leverage and liquidity challenges present potential risks, requiring careful management.

Positive Factors

Earnings Potential

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

Historical Investment Returns

Buying the stock at its current multiple has historically proven to be a highly profitable investment, with an average return of +130% over the ensuing 12 months.

Stock Buyback

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

Negative Factors

Economic Exposure

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

Market Environment Challenges

GSY is managing well through a period of higher macro-economic uncertainty underpinned by proactive underwriting tightening and structural portfolio protections.

Trade Policy Uncertainty

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

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 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: 164.86
• 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 164.86 is above the 20-day moving average (MA) of 156.23, above the 50-day MA of 153.02, and above the 200-day MA of 162.52, indicating a bullish trend. The MACD of 3.61 indicates Negative momentum. The RSI at 66.90 is Neutral, neither overbought nor oversold. The STOCH value of 77.16 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$1.47B	17.41	32.69%	2.55%	46.36%	64.29%
GSY	77 Outperform	$2.64B	10.56	23.56%	3.52%	18.04%	2.48%
AI	68 Neutral	C$547.94M	11.05	9.47%	11.16%	-1.56%	-9.70%
Sector *	65 Neutral	kr119.28B	25.01	7.49%	9.74%	13.90%	-82.08%
ECN	63 Neutral	C$745.92M	94.64	6.65%	1.51%	54.95%	―
FN	57 Neutral	C$2.48B	14.22	24.01%	8.29%	13.85%	-33.76%
ACD	50 Neutral	C$29.36M	―	-6.23%	―	-4.92%	68.05%

goeasy Corporate Events

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.

goeasy Ltd. Celebrated as a Top Workplace in Canada for 2025

goeasy Ltd. has been recognized on the 2025 Best Workplaces in Canada list for the second consecutive year, highlighting its commitment to an employee-centric and inclusive culture. This recognition, based on direct employee feedback, underscores goeasy’s investment in creating a supportive environment where employees can thrive, as evidenced by a record-high engagement score and additional accolades for being a top workplace for women and having trusted executive teams. The acknowledgment reinforces goeasy’s strategy of investing in its workforce to drive customer satisfaction and business success.

goeasy Ltd. Closes US$400 Million Notes Offering to Boost Growth

goeasy Ltd. has successfully closed a US$400 million offering of senior unsecured notes due in 2030, with a currency swap agreement reducing the borrowing cost to 6.03% annually. The proceeds will be used to partially repay secured facilities and support the company’s organic growth plans, increasing its total funding capacity to $2.2 billion, thereby strengthening its financial position and capacity for expansion.