GOEASY LTD (GSY.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GSY - CA3803551074 - Common Stock
129.16 CAD
-0.44 (-0.34%)
We assign a fundamental rating of 6 out of 10 to GSY. GSY was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! GSY also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- GSY had positive earnings in the past year.
- In the past year GSY has reported a negative cash flow from operations.
- Each year in the past 5 years GSY has been profitable.
- GSY had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of GSY (3.75%) is better than 62.50% of its industry peers.
- GSY has a better Return On Equity (18.92%) than 75.00% of its industry peers.
- GSY has a Return On Invested Capital of 7.81%. This is in the better half of the industry: GSY outperforms 75.00% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 14.07%, GSY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- GSY's Profit Margin has improved in the last couple of years.
- GSY has a better Operating Margin (38.49%) 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so GSY is still creating some value.
- Compared to 1 year ago, GSY has about the same amount of shares outstanding.
- The number of shares outstanding for GSY has been increased compared to 5 years ago.
- Compared to 1 year ago, GSY has a worse debt to assets ratio.
2.2 Solvency
- GSY has an Altman-Z score of 1.10. This is a bad value and indicates that GSY is not financially healthy and even has some risk of bankruptcy.
- GSY has a Altman-Z score of 1.10. This is in the better half 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.
- The Debt to Equity ratio of GSY (3.84) is worse than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.84 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.1 |
ROIC/WACC1.12
WACC6.98%
2.3 Liquidity
- A Current Ratio of 2.57 indicates that GSY has no problem at all paying its short term obligations.
- Looking at the Current ratio, with a value of 2.57, GSY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- 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 has a better Quick ratio (2.57) than 87.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
- The earnings per share for GSY have decreased by -0.31% in the last year.
- 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.
- Looking at the last year, GSY shows a quite strong growth in Revenue. The Revenue has grown by 13.69% in the last year.
- Measured over the past years, GSY shows a very strong growth in Revenue. The Revenue has been growing by 20.11% on average per year.
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
- GSY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.19% yearly.
- The Revenue is expected to grow by 12.20% on average over the next years. This is quite good.
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- A Price/Earnings ratio of 7.97 indicates a rather cheap valuation of GSY.
- 62.50% of the companies in the same industry are more expensive than GSY, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 27.21. GSY is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 6.19, the valuation of GSY can be described as very cheap.
- GSY's Price/Forward Earnings ratio is rather cheap when compared to the industry. GSY is cheaper than 87.50% of the companies in the same industry.
- GSY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| 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 the industry average as 62.50% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
- The decent profitability rating of GSY may justify a higher PE ratio.
- A more expensive valuation may be justified as GSY's earnings are expected to grow with 14.19% in the coming years.
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
- The dividend of GSY is nicely growing with an annual growth rate of 30.32%!
- GSY has paid a dividend for at least 10 years, which is 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.
- GSY's earnings are growing slower than its dividend. 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.