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1. Company Snapshot

1.a. Company Description

goeasy Ltd.provides non-prime leasing and lending services to consumers in Canada.The company operates through two segments, Easyfinancial and Easyhome.


The Easyfinancial segment provides unsecured and real estate secured installment loans; personal, home equity, and auto loans; point-of-sale and small business financing; and value-added services.The Easyhome segment leases household furniture, appliances, electronics, computers, and unsecured lending products to retail consumers.As of December 31, 2021, it operated 294 easyfinancial locations that include 8 kiosks, as well as 158 easyhome stores that include 34 franchises.


The company was formerly known as easyhome Ltd.and changed its name to goeasy Ltd.in September 2015.


goeasy Ltd.was incorporated in 1990 and is headquartered in Mississauga, Canada

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1.b. Last Insights on GSY

Negative drivers behind goeasy Ltd.'s recent stock performance include a lack of upside surprise in its Full Year 2024 earnings, which were in line with expectations, and a potential slowdown in revenue growth. Despite reporting record results for the fourth quarter and full year, the company's 9.1% revenue growth may not be enough to sustain investor enthusiasm. Additionally, the recent dividend increase, while positive, may not be enough to offset concerns about the company's growth trajectory.

1.c. Company Highlights

2. goeasy Limited's Q3 2025 Earnings: A Strong Performance Amidst Macroeconomic Challenges

goeasy Limited reported record quarterly revenue of $440 million, a 15% increase from Q3 2024, driven by a significant growth in its loan book. The company's adjusted operating income was $170 million, up 4% from the same period last year, while adjusted diluted EPS was $4.12, below analyst estimates of $4.73. The portfolio yield was 31.4%, reflecting a transition from the rate cap and a higher composition of secured loans. Net charge-offs were 8.9%, a 30-basis point year-over-year decline.

Publication Date: Nov -17

📋 Highlights
  • Record Revenue Growth: Q3 revenue hit $440 million, a 15% increase from Q3 2024, driven by $946 million in loan originations.
  • Loan Portfolio Expansion: Organic loan book growth of $336 million, with a portfolio yield of 31.4% due to secured loan mix and rate cap transition.
  • Improved Credit Metrics: Net charge-offs declined 30 bps year-over-year to 8.9%, alongside 7.3% delinquent balances reflecting underwriting strength.
  • Liquidity and Funding: Unrestricted cash exceeded $400 million, and total funding capacity reached $2.3 billion with a 6.6% weighted average cost of borrowing.
  • Efficiency and Dividend: Adjusted operating income rose 4% to $170 million, and a $1.46/share dividend was approved for Q1 2026, signaling capital return confidence.

Financial Performance and Guidance

The company's financial performance was characterized by a strong growth in its loan book, with originations of $946 million and organic growth of $336 million. The company's guidance for Q4 includes a target growth in its loan book of $250-275 million, with a yield of 30.5-31.5%, reflecting rate cap changes. The outlook range for net charge-offs remains the same as in Q3. As Hal Khouri noted, the company's "efficiency ratio was 23.4%, and the allowance for credit losses increased to 8.1%."

Credit Quality and Risk Management

The company's credit quality remains a focus area, with a conservative posture on underwriting and a dollar-weighted average credit score of 624 in Q3. The net charge-off rate improved to 8.9%, and delinquent balances were 7.3% of the portfolio. The company's allowance for credit losses (ACL) has increased, driven by higher early-stage delinquencies, and stands at 8.1%. Management does not provide specific guidance on the ACL ratio trajectory but notes that it will continue to monitor macroeconomic conditions.

Valuation and Dividend Yield

With a P/E Ratio of 7.11 and a Dividend Yield of 4.51%, goeasy Limited's valuation appears reasonable. The company's ROE is 23.93%, indicating a strong return on equity. The P/TBV ratio is not directly available, but the P/B Ratio is 1.67, suggesting that the stock is not significantly overvalued. Analysts estimate next year's revenue growth at 12.8%, which could potentially drive the stock price higher.

Outlook and Conclusion on Leverage

The company's leverage position is higher than usual due to an upsized cash balance, but it expects to use this cash to pay down securitization facilities. The debt-to-tangible equity ratio is 3.96%, and the company expects to bring this ratio down over the next quarter. The company's robust allowance against expected credit losses for interest receivables and its efforts to collect these receivables as accounts cure or charge off are factored into its consumer yield outlook.

3. NewsRoom

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goeasy CEO Dan Rees to Step Down; Patrick Ens appointed as Next CEO effective Jan. 1, 2026

Dec -02

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goeasy Ltd. Announces CEO Change

Dec -02

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.91%)

6. Segments

Easy Financial

Expected Growth: 10.27%

Easy Financial's 10.27% growth driven by increasing demand for alternative lending, expansion into new markets, and strategic partnerships. Strong brand recognition, efficient operations, and a diversified product portfolio also contribute to growth. Additionally, the company's focus on digital transformation and investment in technology enhance customer experience, driving business expansion.

Easy Home

Expected Growth: 7.3%

Easy Home's 7.3% growth is driven by increasing demand for affordable furniture and appliances, expansion into new markets, and strategic partnerships. Additionally, the company's focus on omnichannel retailing, competitive pricing, and flexible financing options have contributed to its growth. Furthermore, the rise of the gig economy and increasing consumer spending on home goods have also fueled Easy Home's growth.

7. Detailed Products

easyfinancial

A financial services company that provides personal, installment, and secured loans to individuals.

easyhome

A retailer of furniture, electronics, and appliances that offers a lease-to-own payment option.

LendCare

A financing platform that provides loans for various products and services, including home improvement, watercraft, and RVs.

easybath

A bathroom renovation service that provides financing options for bathroom remodels.

8. goeasy Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for goeasy Ltd. is medium, as there are alternative financial institutions and fintech companies that offer similar services, but goeasy's unique business model and customer base mitigate this threat to some extent.

Bargaining Power Of Customers

The bargaining power of customers is low, as goeasy Ltd. has a large customer base and offers personalized financial services, making it difficult for customers to negotiate prices or terms.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low, as goeasy Ltd. has a diversified supply chain and is not heavily dependent on a single supplier, reducing the risk of supplier negotiations.

Threat Of New Entrants

The threat of new entrants is high, as the fintech industry is rapidly growing and new companies are emerging, potentially disrupting goeasy Ltd.'s market share.

Intensity Of Rivalry

The intensity of rivalry is high, as goeasy Ltd. operates in a competitive market with established players and new entrants, requiring the company to continuously innovate and differentiate itself to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 73.28%
Debt Cost 8.07%
Equity Weight 26.72%
Equity Cost 13.68%
WACC 9.57%
Leverage 274.22%

11. Quality Control: goeasy Ltd. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
OneMain Holdings

A-Score: 6.7/10

Value: 5.4

Growth: 5.4

Quality: 5.2

Yield: 10.0

Momentum: 7.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
FirstCash

A-Score: 6.5/10

Value: 4.3

Growth: 7.6

Quality: 8.4

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

View Full Report
Stock-Card
SLM

A-Score: 6.2/10

Value: 7.0

Growth: 5.6

Quality: 6.8

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Western Union

A-Score: 5.8/10

Value: 7.4

Growth: 3.2

Quality: 6.1

Yield: 10.0

Momentum: 0.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
goeasy

A-Score: 5.8/10

Value: 7.2

Growth: 5.6

Quality: 6.8

Yield: 5.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Ally Financial

A-Score: 5.7/10

Value: 7.1

Growth: 5.2

Quality: 3.3

Yield: 6.0

Momentum: 6.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

123.28$

Current Price

123.28$

Potential

-0.00%

Expected Cash-Flows