GOEASY LTD (GSY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GSY - CA3803551074 - Common Stock
129.16 CAD
-0.44 (-0.34%)
GSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 8 industry peers in the Consumer Finance industry. Both the profitability and the financial health of GSY get a neutral evaluation. Nothing too spectacular is happening here. GSY is growing strongly while it is still valued neutral. This is a good combination! Finally GSY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GSY had positive earnings in the past year.
- GSY had a negative operating cash flow in the past year.
- Each year in the past 5 years GSY has been profitable.
- In the past 5 years GSY reported 4 times negative operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.75%, GSY is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- GSY has a Return On Equity of 18.92%. This is in the better half of the industry: GSY outperforms 75.00% of its industry peers.
- With a decent Return On Invested Capital value of 7.81%, GSY is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for GSY is in line with the industry average of 8.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.75% | ||
| ROE | 18.92% | ||
| ROIC | 7.81% |
ROA(3y)5.22%
ROA(5y)6.83%
ROE(3y)21.07%
ROE(5y)25%
ROIC(3y)8.63%
ROIC(5y)9.07%
1.3 Margins
- GSY has a Profit Margin of 14.07%. This is amongst the best in the industry. GSY outperforms 100.00% of its industry peers.
- In the last couple of years the Profit Margin of GSY has grown nicely.
- The Operating Margin of GSY (38.49%) is better than 100.00% of its industry peers.
- In the last couple of years the Operating Margin of GSY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.49% | ||
| PM (TTM) | 14.07% | ||
| GM | N/A |
OM growth 3Y5.6%
OM growth 5Y7.64%
PM growth 3Y-14.4%
PM growth 5Y11.99%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- GSY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- Compared to 1 year ago, GSY has about the same amount of shares outstanding.
- Compared to 5 years ago, GSY has more shares outstanding
- Compared to 1 year ago, GSY has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.10, we must say that GSY is in the distress zone and has some risk of bankruptcy.
- GSY's Altman-Z score of 1.10 is fine compared to the rest of the industry. GSY outperforms 75.00% of its industry peers.
- A Debt/Equity ratio of 3.84 is on the high side and indicates that GSY has dependencies on debt financing.
- With a Debt to Equity ratio value of 3.84, GSY is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC1.11
WACC7.02%
2.3 Liquidity
- A Current Ratio of 2.57 indicates that GSY has no problem at all paying its short term obligations.
- GSY's Current ratio of 2.57 is amongst the best of the industry. GSY outperforms 87.50% of its industry peers.
- GSY has a Quick Ratio of 2.57. This indicates that GSY is financially healthy and has no problem in meeting its short term obligations.
- GSY's Quick ratio of 2.57 is amongst the best of the industry. GSY outperforms 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
- GSY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.31%.
- Measured over the past years, GSY shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.43% on average per year.
- GSY shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.69%.
- The Revenue has been growing by 20.11% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-0.31%
EPS 3Y17.06%
EPS 5Y26.43%
EPS Q2Q%-4.63%
Revenue 1Y (TTM)13.69%
Revenue growth 3Y22.6%
Revenue growth 5Y20.11%
Sales Q2Q%11.44%
3.2 Future
- The Earnings Per Share is expected to grow by 14.19% on average over the next years. This is quite good.
- GSY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.20% yearly.
EPS Next Y-0.92%
EPS Next 2Y11.74%
EPS Next 3Y14.19%
EPS Next 5YN/A
Revenue Next Year12.05%
Revenue Next 2Y12.36%
Revenue Next 3Y12.2%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 7.97, the valuation of GSY can be described as very cheap.
- GSY's Price/Earnings ratio is a bit cheaper when compared to the industry. GSY is cheaper than 62.50% of the companies in the same industry.
- GSY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 6.19, which indicates a rather cheap valuation of GSY.
- Based on the Price/Forward Earnings ratio, GSY is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of GSY to the average of the S&P500 Index (25.98), we can say GSY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.97 | ||
| Fwd PE | 6.19 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, GSY is valued a bit cheaper than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
- GSY has a very decent profitability rating, which may justify a higher PE ratio.
- GSY's earnings are expected to grow with 14.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.3
EPS Next 2Y11.74%
EPS Next 3Y14.19%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.51%, GSY is a good candidate for dividend investing.
- The stock price of GSY dropped by -22.50% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 1.11, GSY pays a better dividend. On top of this GSY pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, GSY pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
5.2 History
- On average, the dividend of GSY grows each year by 30.32%, which is quite nice.
- GSY has been paying a dividend for at least 10 years, so it has a reliable track record.
- GSY has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)30.32%
Div Incr Years10
Div Non Decr Years20
5.3 Sustainability
- 36.00% of the earnings are spent on dividend by GSY. This is a low number and sustainable payout ratio.
- The dividend of GSY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36%
EPS Next 2Y11.74%
EPS Next 3Y14.19%
GOEASY LTD / GSY.CA FAQ
Can you provide the ChartMill fundamental rating for GOEASY LTD?
ChartMill assigns a fundamental rating of 6 / 10 to GSY.CA.
What is the valuation status of GOEASY LTD (GSY.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to GOEASY LTD (GSY.CA). This can be considered as Fairly Valued.
How profitable is GOEASY LTD (GSY.CA) stock?
GOEASY LTD (GSY.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for GSY stock?
The Price/Earnings (PE) ratio for GOEASY LTD (GSY.CA) is 7.97 and the Price/Book (PB) ratio is 1.69.
What is the financial health of GOEASY LTD (GSY.CA) stock?
The financial health rating of GOEASY LTD (GSY.CA) is 4 / 10.