Canada's unemployment's remains low at 5.3%
The demand for money has never been higher with the current inflationary environment. More and more people are either having to cut back on their budgets or they have to borrow more money for their day to day living expenses. As long as unemployment remains low, the provision for credit losses should remain stable.
Right now, we're seeing the impact of interest rates going up and because this company holds a significant amount of debt it is raising some concerns. I'm not too concerned as their operating margin is significantly higher than their interest expense.
Take a look at the 5 big banks and their market capitalization. Not one of them are involved in sub-prime lending and Goeasy's market cap is just a fraction of it.
Just to think about it, the combined market cap of the 5 biggest Canadians banks is $636.5b compared to just $2b for Goeasy. The market opportunity in front of Goeasy is massive and every reason to keep accumulating.