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GSY

goeasyTSX:GSY Stock Report

Market Cap

CA$3.1b

7D

-2.2%

1Y

165.4%

Updated

16 Oct, 2021

Data

Company Financials +
GSY fundamental analysis
Snowflake Score
Valuation0/6
Future Growth4/6
Past Performance4/6
Financial Health2/6
Dividends4/6

GSY Overview

goeasy Ltd. provides loans and other financial services to consumers in Canada.

goeasy Competitors

Price History & Performance

Summary of all time highs, changes and price drops for goeasy
Historical stock prices
Current Share PriceCA$186.22
52 Week HighCA$66.51
52 Week LowCA$218.35
Beta2.14
1 Month Change-11.47%
3 Month Change20.10%
1 Year Change165.38%
3 Year Change309.28%
5 Year Change625.44%
Change since IPO15,418.33%

Recent News & Updates

Aug 28
Here's Why I Think goeasy (TSE:GSY) Is An Interesting Stock

Here's Why I Think goeasy (TSE:GSY) Is An Interesting Stock

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

GSYCA Consumer FinanceCA Market
7D-2.2%0.3%2.4%
1Y165.4%123.2%31.3%

Return vs Industry: GSY exceeded the Canadian Consumer Finance industry which returned 123.2% over the past year.

Return vs Market: GSY exceeded the Canadian Market which returned 31.3% over the past year.

Price Volatility

Is GSY's price volatile compared to industry and market?
GSY volatility
GSY Beta2.14
Industry Beta2.3
Market Beta1

Stable Share Price: GSY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: GSY's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19902,200Jason Mullinshttps://www.goeasy.com

goeasy Ltd. provides loans and other financial services to consumers in Canada. It also leases household products to consumers. The company operates through two segments, Easyfinancial and Easyhome.

goeasy Fundamentals Summary

How do goeasy's earnings and revenue compare to its market cap?
GSY fundamental statistics
Market CapCA$3.07b
Earnings (TTM)CA$213.43m
Revenue (TTM)CA$507.32m

14.4x

P/E Ratio

6.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GSY income statement (TTM)
RevenueCA$507.32m
Cost of RevenueCA$0
Gross ProfitCA$507.32m
ExpensesCA$293.89m
EarningsCA$213.43m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)12.94
Gross Margin100.00%
Net Profit Margin42.07%
Debt/Equity Ratio201.5%

How did GSY perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

16%

Payout Ratio

Valuation

Is goeasy undervalued compared to its fair value and its price relative to the market?

14.39x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GSY (CA$186.22) is trading above our estimate of fair value (CA$163.21)

Significantly Below Fair Value: GSY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GSY is poor value based on its PE Ratio (14.4x) compared to the North American Consumer Finance industry average (8.2x).

PE vs Market: GSY is poor value based on its PE Ratio (14.4x) compared to the Canadian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: GSY is poor value based on its PEG Ratio (3.6x)


Price to Book Ratio

PB vs Industry: GSY is overvalued based on its PB Ratio (4.1x) compared to the CA Consumer Finance industry average (1.5x).


Future Growth

How is goeasy forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSY's forecast earnings growth (4% per year) is above the savings rate (1.6%).

Earnings vs Market: GSY's earnings (4% per year) are forecast to grow slower than the Canadian market (11.8% per year).

High Growth Earnings: GSY's earnings are forecast to grow, but not significantly.

Revenue vs Market: GSY's revenue (20.9% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: GSY's revenue (20.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GSY's Return on Equity is forecast to be high in 3 years time (23.8%)


Past Performance

How has goeasy performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSY has a large one-off gain of CA$91.8M impacting its June 30 2021 financial results.

Growing Profit Margin: GSY's current net profit margins (42.1%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: GSY's earnings have grown significantly by 40.8% per year over the past 5 years.

Accelerating Growth: GSY's earnings growth over the past year (163.4%) exceeds its 5-year average (40.8% per year).

Earnings vs Industry: GSY earnings growth over the past year (163.4%) exceeded the Consumer Finance industry 133.2%.


Return on Equity

High ROE: Whilst GSY's Return on Equity (28.5%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is goeasy's financial position?


Financial Position Analysis

Short Term Liabilities: GSY's short term assets (CA$2.0B) exceed its short term liabilities (CA$127.8M).

Long Term Liabilities: GSY's short term assets (CA$2.0B) exceed its long term liabilities (CA$1.6B).


Debt to Equity History and Analysis

Debt Level: GSY's debt to equity ratio (201.5%) is considered high.

Reducing Debt: GSY's debt to equity ratio has increased from 126.8% to 201.5% over the past 5 years.

Debt Coverage: GSY's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GSY's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is goeasy current dividend yield, its reliability and sustainability?

1.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GSY's dividend (1.42%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.59%).

High Dividend: GSY's dividend (1.42%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).


Stability and Growth of Payments

Stable Dividend: GSY's dividends per share have been stable in the past 10 years.

Growing Dividend: GSY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16%), GSY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GSY's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Jason Mullins (38 yo)

2.75yrs

Tenure

CA$2,032,245

Compensation

Mr. Jason Mullins serves as Director at goeasy Ltd. since March 15, 2021. Mr. Mullins serves as the President of goeasy Ltd.since April 2, 2018 and serves as its Chief Executive Officer since January 1, 2...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.64M) is below average for companies of similar size in the Canadian market ($USD2.89M).

Compensation vs Earnings: Jason's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: GSY's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: GSY's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GSY insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11%.


Top Shareholders

Company Information

goeasy Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: goeasy Ltd.
  • Ticker: GSY
  • Exchange: TSX
  • Founded: 1990
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: CA$3.072b
  • Shares outstanding: 16.50m
  • Website: https://www.goeasy.com

Number of Employees


Location

  • goeasy Ltd.
  • 33 City Centre Drive
  • Suite 510
  • Mississauga
  • Ontario
  • L5B 2N5
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 22:15
End of Day Share Price2021/10/15 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.