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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 Aug 14, 2024 12:44pm
232 Views
Post# 36178774

RE:RE:CIBC

RE:RE:CIBC

Good post. 

Another thing worth mentioning is that higher unemployment is going to be a drag on future earnings or at least put a kibosh on future eps growth. 

The company mentions this in their md&a on how an increase in unemployment and a decrease in gdp increases the allowance for credit losses which decreases net earnings. If management were to assign the most pessimistic outcome for the economy over the next 12 months ; I.e., unemployment rising to 7.61% and gdp growth of - 0.97% then the allowance for credit losses would have increased by $29.7m from the quarter ended just reported. If you increase the provision for credit losses then you have to decrease net earnings as a result. 

Something to watch out for in future quarters. 

 

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