TSX:GSY

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 59.8% below its fair value

Earnings are forecast to grow 32.91% per year

Earnings grew by 21.1% over the past year

Pays a high and reliable dividend of 5.99%

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Significant insider selling over the past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential established dividend payer.


Similar Companies

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.5%

GSY

-7.4%

CA Consumer Finance

3.0%

CA Market


1 Year Return

-32.7%

GSY

-35.8%

CA Consumer Finance

-24.5%

CA Market

Return vs Industry: GSY exceeded the Canadian Consumer Finance industry which returned -35.8% over the past year.

Return vs Market: GSY underperformed the Canadian Market which returned -24.5% over the past year.


Shareholder returns

GSYIndustryMarket
7 Day-9.5%-7.4%3.0%
30 Day-52.8%-47.3%-21.2%
90 Day-57.2%-51.9%-24.4%
1 Year-30.8%-32.7%-34.5%-35.8%-22.0%-24.5%
3 Year-5.0%-11.9%-21.8%-25.5%-13.9%-21.9%
5 Year58.5%40.4%-27.8%-33.2%-2.0%-16.6%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GSY (CA$30.05) is trading below our estimate of fair value (CA$74.83)

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 (6.8x) compared to the Consumer Finance industry average (4.6x).

PE vs Market: GSY is good value based on its PE Ratio (6.8x) compared to the Canadian market (10.6x).


Price to Earnings Growth Ratio

PEG Ratio: GSY is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GSY is overvalued based on its PB Ratio (1.3x) compared to the CA Consumer Finance industry average (0.8x).


Next Steps

Future Growth

How is goeasy forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GSY's forecast earnings growth (32.9% per year) is above the savings rate (1.4%).

Earnings vs Market: GSY's earnings (32.9% per year) are forecast to grow faster than the Canadian market (5.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GSY's revenue (30.4% per year) is forecast to grow faster than the Canadian market (3.4% per year).

High Growth Revenue: GSY's revenue (30.4% 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%)


Next Steps

Past Performance

How has goeasy performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GSY has a high level of non-cash earnings.

Growing Profit Margin: GSY's current net profit margins (16.3%) are higher than last year (15.6%).


Past Earnings Growth Analysis

Earnings Trend: GSY's earnings have grown significantly by 25.6% per year over the past 5 years.

Accelerating Growth: GSY's earnings growth over the past year (21.1%) is below its 5-year average (25.6% per year).

Earnings vs Industry: GSY earnings growth over the past year (21.1%) exceeded the Consumer Finance industry 10%.


Return on Equity

High ROE: GSY's Return on Equity (19.4%) is considered low.


Next Steps

Financial Health

How is goeasy's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GSY has a low level of unsold assets or inventory.

Debt Coverage by Assets: GSY's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: GSY's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GSY has a sufficient allowance for bad loans.

Low Risk Liabilities: GSY reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GSY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GSY has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GSY has an appropriate level of bad loans.


Next Steps

Dividend

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

5.99%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GSY's dividend (5.99%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: GSY's dividend (5.99%) is low compared to the top 25% of dividend payers in the Canadian market (8.7%).


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 reasonably low payout ratio (28.2%), 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 (33.9% payout ratio).


Next Steps

Management

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

2.0yrs

Average management tenure


CEO

Jason Mullins

1.25s

Tenure

CA$1,566,576

Compensation

Mr. Jason Mullins serves as the President of goeasy Ltd. since April 2, 2018 and serves as its Chief Executive Officer since January 1, 2019 and served as Chief Operating Officer until December 31, 2018. M ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD1.11M) is about average for companies of similar size in the Canadian market ($USD1.22M).

Compensation vs Earnings: Jason's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Ingram
Executive Chairman1.25yrsCA$2.44m3.65% CA$15.7m
Jason Mullins
President & CEO1.25yrsCA$1.57m0.53% CA$2.3m
Andrea Fiederer
Executive VP & Chief Marketing Officer5.25yrsCA$784.52k0.11% CA$481.6k
Hal Khouri
CFO & Executive VP0.67yrno data0.12% CA$538.2k
Anzini Sabrina
Senior Vice President of Legal & Corporate Affairs2yrsno datano data
David Cooper
Senior Vice President of Human Resources2yrsno data0.016% CA$67.0k
Jason Appel
Executive VP & Chief Risk Officer5.25yrsCA$500.91k0.14% CA$615.9k
Shane Pennell
Senior Vice President5.25yrsno data0.087% CA$375.7k
Steven Poole
Senior Vice President2.08yrsno data0.066% CA$282.8k

2.0yrs

Average Tenure

Experienced Management: GSY's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Ingram
Executive Chairman1.25yrsCA$2.44m3.65% CA$15.7m
Karen Basian
Independent Director5.42yrsCA$135.60k0.13% CA$567.5k
Donald Johnson
Chairman Emeritus & Lead Director1.25yrsCA$204.47k20.98% CA$90.5m
Sean Morrison
Independent Director8.25yrsCA$120.65k0.15% CA$640.5k
Susan Doniz
Independent Director3.92yrsCA$118.53k0.013% CA$56.7k
David Appel
Independent Director9.67yrsCA$169.94k0.92% CA$4.0m
James Moore
Director0.083yrno datano data

3.9yrs

Average Tenure

54.5yo

Average Age

Experienced Board: GSY's board of directors are considered experienced (3.9 years average tenure).


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 4.2%.


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$431.385m
  • Shares outstanding: 14.36m
  • Website: https://www.goeasy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GSYTSX (The Toronto Stock Exchange)YesCommon SharesCACADNov 1993
EHME.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDNov 1993
1ESDB (Deutsche Boerse AG)YesCommon SharesDEEURNov 1993

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 Easyfinancial segment provides unsecured and real estate secured installment loans, and secured saving loans; loan protection plans; and an optional home and auto benefits products, which offers road side assistance and a suite of other support services, as well as credit monitoring services. The Easyhome segment leases furniture, appliances, electronics, and computers. As of December 31, 2019, it operated 256 easyfinancial locations that include 33 kiosks, as well as 163 easyhome stores that include 35 franchises. The company was formerly known as easyhome Ltd. and changed its name to goeasy Ltd. in September 2015. goeasy Ltd. was founded in 1990 and is headquartered in Mississauga, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 00:31
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.