rev growth 26 percent eps grew 24 percent. Zero negativesPhenominal growth yet the multiple awarded to goeasy at $45 a share with a 2 year foward lookiing eps of $6 is only 7.5 times. This is a perenial problem for goeasy as it continues to deliver one home run after another but the company gets no respect.
Even using the low historic multiple of 10 times puts you at a valuation of $60-$65.
EBITDA margin of 27.6 grew from 25.9 in last quarter is an insane margin. As costs remain relatively fixed goeasy is scaling its business. Interestingly the mDA shows a go slow approach in quebec and most rapid growth is in its home base of Ontario. Shows that their credit adjudication is working well and their long experience here is paying dividends.
return on equity of almost 24 percent from 21.3 last quarter is ludicrous (as Musk might say). last debt issue cost was 6.17 percent which has been steadily improving.
There is not one negative number in this report and stock is significantly undervalued here. I believe as more people discover goeasy the pool of investors will grow and this will trade at a more appropriate valuation. Ingram in the press release says we are still at the start of this rapid growth which the numbers prove him correct. This market is indeed large as they appear to grow their loan book so easily. Interest rates inching up a litle has also likely helped as some customers who may have been borderline at the bank are pushed towards goeasy.