(GSY) goeasy - Ratings and Ratios

goeasy Ltd. (GSY) is a Canadian financial services provider specializing in non-prime leasing and lending solutions. Operating through its Easyfinancial and Easyhome segments, the company serves consumers who may not qualify for traditional credit products. Under the easyhome brand, it offers leasing options for household furniture, appliances, electronics, and unsecured lending products. Through easyfinancial, it provides unsecured and secured installment loans, home equity loans, automotive financing, and loans for retail goods, powersports, recreational vehicles, home improvements, and healthcare-related products. The company also operates LendCare, a fintech platform that offers point-of-sale financing solutions. Formerly known as easyhome Ltd., the company rebranded as goeasy Ltd. in 2015 to reflect its expanded product offerings. Headquartered in Mississauga, Ontario, goeasy has been in operation since 1990 and has established itself as a key player in Canadas alternative financial services market, targeting underserved consumers with tailored financial solutions.

From a technical perspective, GSY is currently trading at $157.41, slightly above its 20-day SMA of $151.71 but below its 200-day SMA of $169.92, indicating a recent uptrend but still in a longer-term consolidation phase. The stocks average 20-day volume is 64,061 shares, with an ATR of $5.88, suggesting moderate volatility. The 50-day SMA of $154.78 provides near-term support, while the 200-day SMA acts as resistance. The stocks price action suggests a potential breakout above the 200-day SMA if momentum continues to build.

Fundamentally, goeasy has a market capitalization of $2.49 billion CAD, with a P/E ratio of 8.87 and a forward P/E of 7.75, indicating undervaluation relative to its earnings growth prospects. The companys price-to-book ratio of 2.07 reflects its strong equity position, while its P/S ratio of 3.06 highlights its revenue generation efficiency. With a return on equity (RoE) of 23.57%, goeasy demonstrates strong profitability and effective use of shareholder capital.

Over the next three months, GSY is expected to trade in a range of $150 to $170, supported by its 50-day SMA and driven by its attractive valuation and strong earnings fundamentals. The stock may face resistance near the 200-day SMA of $169.92, but if it breaks above this level, it could test its recent highs near $180. The companys focus on expanding its non-prime lending portfolio and its strong financial performance position it well for continued growth in Canadas consumer finance sector.