Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

goeasy Ltd T.GSY

Alternate Symbol(s):  EHMEF

goeasy Ltd. is a Canadian company that provides non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands. The Company's segments include easyfinancial and easyhome. The easyfinancial segment lends out capital in the form of unsecured and secured consumer loans to non-prime borrowers. easyfinancial's product offering consists of unsecured and real estate secured instalment loans. The LendCare operating segment specializes in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement categories. The easyhome segment provides leasing services for household furniture, appliances and electronics and unsecured lending products to retail consumers. Its customers can transact seamlessly through an omnichannel model that includes online and mobile platforms, over 400 locations across Canada, and point-of-sale financing offered in the retail, powersports, automotive, home improvement, and healthcare verticals.


TSX:GSY - Post by User

Comment by Torontojayon Feb 29, 2024 9:41pm
142 Views
Post# 35908171

RE:The next GoEasy.is...

RE:The next GoEasy.is...

The difference between Goeasy and Propel is the price to earnings to growth ratio. Goeasy has historically traded at low P/E multiples even though the growth rate was phenomenal .You didn't have to pay a lot for future earnings and the investment was not considered as risky. Propel is also a fast mover but you have to pay a bit more for expected earnings; I.e, a higher Peg ratio. It might still turn out to be a good investment. 

I first came to know Goeasy, formerly called Easyhome, using a simple stock screener. I remember the P/E ratio at the time of purchase was very low but the company was growing its instalment loan business at a nice clip. There were some regulatory issues happening with payday lenders; I.e, Cash Store Financial, but this was not a payday lender. The majority of its business at the time was in office furniture rentals which explained the lack of interest in the company. What the market failed to realize was the exciting instalment loan business that nobody knew about. None of the Canadian banks wanted to get involved with subprime lending. The large US players, Citigroup, HSBC and Wells Fargo, exited the space due to regulatory capital requirements after the GFC which was around 2011. The CEO at the time recognized this and capitalized on the opportunity but you only had to pay something like 8 times earnings for EasyHome. I was more interested in the new line of business which was divergent from its traditional business model. 

If you can pay a low multiple for a company that can compound its earnings for over a decade at double digits then you found yourself a winner. 

Goeasy has been that winner for me. 

<< Previous
Bullboard Posts
Next >>