Topic: How To Invest

Q: Can you comment on goeasy (GSY)? What is your opinion of this company as an investment? Thanks.

Article Excerpt

A: goeasy Ltd., $192.13, symbol GSY on Toronto (Shares outstanding: 16.5 million; Market cap: $3.0 billion; www.goeasy.com), is a provider of non-prime lease-to-own loans, in addition to providing other lending services. It’s headquartered in Mississauga, Ontario. The company operates through two segments: easyfinancial (86% of total revenue), which provides personal loans at interest rates starting at 14.99%; and easyhome (14% of revenue), which leases furniture, appliances, home electronics and computers on a rent-to-own basis to consumers with poor credit histories or insufficient cash at a fixed annual interest rate of 29.99%. Customers then have the option to purchase their goods at a predetermined price. In addition, at the end of the lease term, title automatically transfers to the customer. Customers transact with easyhome and easyfinancial online and through mobile devices. There are also 286 easyfinancial and 158 easyhome locations. Over the past five years, goeasy’s revenue increased 87.9%, from $347.5 million in 2016 to $652.9 million in 2020. That reflects the growth of…