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
Strategy: Beat the TSX
Return at exit: Live
Value Play with Strong Dividend Growth
• Our ML engine has identified goeasy Ltd. as a compelling buy opportunity based on market performance potential, strong financial stability, and attractive valuation metrics.
• Despite recent share price weakness (-18% year-over-year), goeasy demonstrates robust operational strength with record quarterly revenue of $440 million (up 15% YoY) and impressive 43.6% operating margin.
• The stock appears significantly undervalued, trading at just 9.6x earnings and 61% of its 52-week high, while analysts maintain an average price target of $203.40 (56% upside potential).
• Income-focused investors benefit from a generous 4.5% dividend yield with outstanding 25% dividend growth, supported by strong loan book expansion (32% YoY increase to $5.4 billion).
• Multiple analyst firms maintain positive ratings despite recent earnings volatility, with BMO Capital’s “outperform” rating and $226 price target highlighting long-term confidence.