goeasy Ltd (TSE:GSY)
TSX:GSY
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goeasy
(TSX:GSY)
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Rating:41Neutral
Price Target:
C$33.00
▲(1.41% Upside)
Action:Reiterated
Date:05/15/26
The score is held down primarily by deteriorating financial strength (losses, high and rising leverage, and persistent negative operating/free cash flow) and a pronounced technical downtrend. Earnings-call details reinforce near-term credit and liquidity execution risks, while valuation signals are weakened by the negative P/E and the dividend suspension.
Positive Factors
Strong revenue growth and operating profitability
Sustained top-line expansion and robust operating margins create structural capacity to absorb higher credit costs and fund strategic remediation. Durable revenue momentum across product lines supports scale economics, underwriting investment, and long-term profitability if credit trends stabilize.
Negative Factors
Elevated and rising leverage
A markedly stretched capital structure materially reduces financial flexibility to withstand elevated credit losses or funding shocks. High leverage increases refinancing and covenant risk, constrains capital returns, and amplifies earnings volatility during downturns, limiting strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth and operating profitability
Sustained top-line expansion and robust operating margins create structural capacity to absorb higher credit costs and fund strategic remediation. Durable revenue momentum across product lines supports scale economics, underwriting investment, and long-term profitability if credit trends stabilize.
Read all positive factors
goeasy (GSY) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$560.38M
Dividend Yield4.48%
Average Volume (3M)140.74K
Price to Earnings (P/E)―
Beta (1Y)1.47
Revenue Growth9.99%
EPS Growth-205.90%
CountryCA
Employees2,600
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-16.36
Shares Outstanding16,033,684
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$38.17Price Target Upside17.29% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)-1.23
Revenue Forecast (FY)C$1.63B
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:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management highlighted strong operating cash generation, on-target performance against prior Q1 guidance, defensive actions (workforce reductions, tightened merchant originations) and a path to refocus growth on the healthier direct-to-consumer franchise. However, these positives were offset by meaningful near-term challenges — an adjusted net loss, elevated net charge-offs largely tied to merchant-originated auto and powersports loans, a sizable build in credit provisions, ongoing remediation of a control deficiency, conditional access to material liquidity, and a pullback in originations that contracted the loan book sequentially. Management articulated a clear plan and reiterated mid-teens net charge-off expectations for the year, but execution and timing risks remain salient.Positive Updates
Strong operating cash generation
Cash provided by operating activities before net principal written was $560.1 million in Q1 2026, up from $410.7 million in Q1 2025 (≈ +36%), giving management flexibility to manage liquidity and originations.
Negative Updates
Adjusted net loss and negative EPS
Adjusted net loss of $31.3 million in Q1 2026 and adjusted diluted loss per share of negative $1.90, reflecting elevated credit losses and lower yields relative to some prior periods.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong operating cash generation
Cash provided by operating activities before net principal written was $560.1 million in Q1 2026, up from $410.7 million in Q1 2025 (≈ +36%), giving management flexibility to manage liquidity and originations.
Read all positive updates
Company Guidance
Management's guidance for Q2 2026 is for ending gross consumer loans receivable of $4.9–$5.1 billion, total yield on consumer loans of 27.0–28.5% and net charge‑offs of 16.0–17.5%; for full‑year 2026 they expect loans to decline before resuming growth in H2, yields to improve as interest charge‑offs fall, and net charge‑offs to average in the mid‑teens. For context, Q1 actuals were: ending loans $5.36B, yield 27.9%, net charge‑offs 17.8%, adjusted diluted EPS ‑$1.90, cash provided by operations before net principal written $560.1M, total ACL $541.2M (10.09% of loans), total delinquencies 12.3% (>$30 days 5.9%), LendCare NCOs 26.4% (41.3% of portfolio), direct‑to‑consumer 58.7% of portfolio, liquidity $1.1B (with $743M currently unavailable), revolver capacity returning July 1 and the USD ~$65M note repaid.goeasy Financial Statement Overview
Summary
Income Statement
42
Neutral
Balance Sheet
28
Negative
Cash Flow
15
Very 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
Neutral
32.54
Price Trends
33.89
Positive
77.65
Negative
120.44
Negative
Market Momentum
-1.39
Negative
51.01
Neutral
83.68
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSY, the sentiment is Neutral. The current price of 32.54 is above the 20-day moving average (MA) of 32.28, below the 50-day MA of 33.89, and below the 200-day MA of 120.44, indicating a neutral trend. The MACD of -1.39 indicates Negative momentum. The RSI at 51.01 is Neutral, neither overbought nor oversold. The STOCH value of 83.68 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | C$1.02B | 9.97 | 12.71% | 7.33% | 10.47% | 9.78% | |
70 Outperform | C$782.49M | 15.26 | 5.89% | 0.49% | 4.86% | -24.62% | |
69 Neutral | C$823.82M | 6.47 | 21.55% | 3.01% | 24.26% | -7.76% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$4.30B | 12.46 | 7.31% | 2.09% | -8.84% | -41.65% | |
51 Neutral | C$1.80B | -21.78 | 2.86% | 4.67% | -9.91% | ― | |
41 Neutral | C$560.38M | -2.97 | 18.88% | 4.48% | 9.99% | -205.90% |
* Financial Sector Average
TSE:GSY
goeasy
34.95
-111.15
-76.08%
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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, ...
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.