Risk factor
Weak & very vulnerable to price shocks
Profitability factor
Greatly undervalued vs peers
About
goeasy Ltd. (GSY.TO) is a Canadian company that provides financial services, specifically non-prime lending and leasing options, to consumers. Its operations are divided into two main business segments. The Easyfinancial division offers a variety of credit products, including unsecured installment loans, loans secured by real estate, personal loans, home equity loans, and auto loans. It also facilitates point-of-sale financing for purchases, provides funding for small businesses, and delivers supplementary value-added services. The Easyhome division specializes in leasing household items such as furniture, appliances, electronics, and computers to retail customers, in addition to offering unsecured lending. As of December 31, 2021, goeasy operated 294 Easyfinancial branches, which included 8 kiosk locations, and 158 Easyhome stores, with 34 of those being franchises. The company, founded in 1990 and headquartered in Mississauga, Canada, rebranded from easyhome Ltd. to goeasy Ltd. in September 2015.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is undervalued on EV/EBITDA.
Target Price
The average target price of GSY.TO is 38 and suggests 1% downside potential. Usually, this means a SELL recommendation among investment firms, or a recommendation to decr