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Market Cap

CA$1.9b

Last Updated

2021/04/10 23:06 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Solid track record with reasonable growth potential and pays a dividend.


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Share Price & News

How has goeasy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GSY is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: GSY's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

GSY

-0.3%

CA Consumer Finance

1.0%

CA Market


1 Year Return

219.2%

GSY

184.8%

CA Consumer Finance

39.2%

CA Market

Return vs Industry: GSY exceeded the Canadian Consumer Finance industry which returned 184.8% over the past year.

Return vs Market: GSY exceeded the Canadian Market which returned 39.2% over the past year.


Shareholder returns

GSYIndustryMarket
7 Day-0.6%-0.3%1.0%
30 Day-0.9%-0.4%1.4%
90 Day31.2%29.2%7.5%
1 Year227.5%219.2%192.6%184.8%44.0%39.2%
3 Year290.9%261.7%164.6%150.0%32.2%19.6%
5 Year708.6%614.0%121.7%102.8%59.4%35.3%

Long-Term Price Volatility Vs. Market

How volatile is goeasy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSY (CA$127.38) is trading below our estimate of fair value (CA$165.19)

Significantly Below Fair Value: GSY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GSY is poor value based on its PE Ratio (13.8x) compared to the XN Consumer Finance industry average (12.9x).

PE vs Market: GSY is good value based on its PE Ratio (13.8x) compared to the Canadian market (17.3x).


Price to Earnings Growth Ratio

PEG Ratio: GSY is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: GSY is overvalued based on its PB Ratio (4.3x) compared to the CA Consumer Finance industry average (1.2x).


Future Growth

How is goeasy forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSY's forecast earnings growth (9% per year) is above the savings rate (1.5%).

Earnings vs Market: GSY's earnings (9% per year) are forecast to grow slower than the Canadian market (21.8% per year).

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

Revenue vs Market: GSY's revenue (22.3% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: GSY's revenue (22.3% 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 (24.4%)


Past Performance

How has goeasy performed over the past 5 years?

30.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSY has high quality earnings.

Growing Profit Margin: GSY's current net profit margins (29.5%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: GSY's earnings have grown significantly by 30.1% per year over the past 5 years.

Accelerating Growth: GSY's earnings growth over the past year (112%) exceeds its 5-year average (30.1% per year).

Earnings vs Industry: GSY earnings growth over the past year (112%) exceeded the Consumer Finance industry -21.4%.


Return on Equity

High ROE: Whilst GSY's Return on Equity (30.78%) 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$1.3B) exceed its short term liabilities (CA$106.1M).

Long Term Liabilities: GSY's short term assets (CA$1.3B) exceed its long term liabilities (CA$952.3M).


Debt to Equity History and Analysis

Debt Level: GSY's debt to equity ratio (208.5%) is considered high.

Reducing Debt: GSY's debt to equity ratio has increased from 120.3% to 208.5% over the past 5 years.

Debt Coverage: GSY's debt is not well covered by operating cash flow (8%).

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?

1.41%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GSY's dividend (1.41%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.49%).

High Dividend: GSY's dividend (1.41%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).


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 (19.5%), 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 (26.8% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Jason Mullins

2.25yrs

Tenure

CA$1,726,734

Compensation

Mr. Jason Mullins serves as Director at goeasy Ltd. since March 2021. Mr. Mullins serves as the President of goeasy Ltd. since April 2, 2018 and serves as its Chief Executive Officer since January 1, 2019 ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.37M) is below average for companies of similar size in the Canadian market ($USD2.07M).

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 (2.6 years average tenure).


Board Members

Experienced Board: GSY's board of directors are not considered experienced ( 2.3 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 only sold shares 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 4.1%.


Top Shareholders

Company Information

goeasy Ltd.'s company bio, 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$1.900b
  • Shares outstanding: 14.92m
  • Website: https://www.goeasy.com

Number of Employees


Location

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

Listings


Biography

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. The Ea...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 23:06
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
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.