Goeasy Ltd

Sound bite for Twitter and StockTwits is: Dividend Growth Payloan Co. The company is doing fine. I just do not care to invest in such companies. The stock price could currently be considered to be relatively expensive. See my spreadsheet on Goeasy Ltd.

I do not own this stock of Goeasy Ltd (TSX-GSY, OTC-EHMEF). In April of 2016 Investment Reporter said to seek stocks with growing dividends from The Investment Reporter Key stock buys. This is one stock that was named.

I can see the argument that if this sort of company is not allowed people would go to loan sharks and be worse off. The argument is probably valid. However, that does not mean I should invest in such a company. There are lots to invest in without investing in Goeasy.

If you want to know why I object to invest in this company see this article on CBC. They are like payday loans and the loans are just below the legal limited of 60%. Did you know the legal limit for loans was 60%? And that legal limit does not include the loan-protection insurance payment.

Dividend yield is moderate with low to moderate increases. The current dividend yield is 2.33% with 5 year median of 2.25% and a historical median of 2.33%. The 5 and 10 year growth in dividends is at 5.7% and 8% per year. The last increase was in 2017 and was for a whopping 44%. The reason for the low growth over the past 5 years is that there was no dividend increases between 2010 and 2014 inclusive.

The company is growing. Since the number of shares is growing, you need to look at per share values for growth. The revenue per share growth over the past 5 and 10 years is at 10.4% and 8.3% per year. The EPS growth is at 22.5% and 10% per year over the past 5 and 10 years. The growth for cash flow per share is at 11.3% and 8.3% per year.

The Return on Equity has been above 10% each year for the past 5 years but only 7 out of the past 10 years. The 5 year median ROE is 12.5% with 15.8% ROE for 2016.

The 5 year low, median and high median Price/Earnings per Share Ratios are 8.85, 11.28 and 13.70. The 10 year values are 10.14, 13.01 and 16.66. The historical values are 10.71, 14.50 and 18.28. The current P/E Ratio is 11.00 based on a stock price of $30.91 and 2017 EPS estimate of $2.81. This stock price testing suggests that the stock price is relatively reasonable and below the median.

I get a Graham Price of $31.08. The 10 year low, median and high median Price/Graham Price Ratios are 0.64, 0.85 and 1.07. The current P/GP Ratio is 0.99 based on a stock price of $30.91. This stock price testing suggests that the stock price is relatively reasonable but above the median.

The 10 year Price/Book Value per Share Ratio is 1.37. The current P/B Ratio is 2.02 based on BVPS of $15.28 and a stock price of $30.91. The current ratio is some 48% higher than the 10 year median. This stock price testing suggests that the stock price is relatively expensive.

The current dividend yield is 2.33%. This is based on dividends of $0.72 and a stock price of $30.91. The historical dividend yield is 2.33. This stock price testing suggests that the stock price is relatively reasonable with a price around the median. (Note that the dividends have just increased by a huge 44% and this would greatly affect this test.

The 10 year P/S Ratio is 0.81. The current P/S Ratio is 1.05 a value some 30% higher. The current ratio is based on 2017 Revenue of $393M, Revenue per Share of $29.49 and a stock price of $30.91. This stock price testing suggests that the stock price is relatively expensive.

When I look at analysts' recommendations I find Strong Buy and Buy recommendations. There are more Buy recommendations, so the consensus recommendation is a Buy. The 12 months stock price consensus is $43.50. This implies a total return of 43.06% with 40.73% from capital gains and 2.33% from dividends. This is based on a current price of $30.91.

An article posted on SmallCap Power says that Goeasy is doing well and is being unfairly painted by the Home Capital Group brush. An article on DARC News takes a look at yields and Technicals for this stock. Daniel Jordon on Sports Perspectives talks about Raymond James Financial increasing this company's target price from $36.00 to $41.00. See what analysts are saying about this company on Stock Chase. They think it is growing well.

Goeasy Ltd. is the leading full service provider of goods and alternative financial services. Today, Goeasy Ltd. serves its customers through two key operating divisions, easyhome Leasing and easyfinancial. Its web site is here Goeasy Ltd.

The last stock I wrote about was about was Husky Energy Inc. (TSX-HSE, OTC- HUSKF)... learn more. The next stock I will write about will be Waste Connections Inc. (TSX-WCN, NYSE-WCN)... learn more on Monday, June 5, 2017 around 5 pm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my website for stocks followed and investment notes. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter or StockTwits. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.