Sound bite for Twitter is: Dividend Growth Consumer. Results of stock price testing is that the stock price might be reasonable and could be cheap. Debt Ratios are showing that the company has too much debt. The Dividend Payout Ratios (DPR) are good. The current dividend yield is moderate with dividend growth good. See my spreadsheet on Goeasy Ltd .
Is it a good company at a reasonable price? This is not the sort of company I personally would like to invest in because of the business it is in. It has a lot of debt. I would worry about that. The company certainly has performed well for shareholders and that have increased their dividends a lot. It is off its recent high and is certainly testing as reasonable.
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. However, I would still rather invest in companies that are not in the business of charging very high interest rates.
When I was updating my spreadsheet, I noticed that the company has far too much debt. Long Term Debt to Market Cap is 131. A good ratio is 0.50. It has delivered good returns to its shareholders, but I personally do not like the sort of business that it is in.
If you had invested in this company in December 2014, for $1,003.00 you would have bought 50 shares at $20.06 per share. In December 2024, after 10 years you would have received $964.00 in dividends. The stock would be worth $8,335.50. Your total return would have been $9,299.50. This would be a total return of 26.31% per year with 23.58% from capital gain and 2.73% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $20.06 | $1,003.00 | 50 | 10 | $964.00 | $8,335.50 | $9,299.50 |
The current dividend yield is moderate with dividend growth good. The current dividend yield is moderate (2% to 4% ranges) at 3.80%. The 5, 10 and historical median dividend yields are also moderate at 2.51%, 2.21% and 2.33%. The dividend growth is good (15% and higher) at 31% per year over the past 5 years. The last dividend increase was for 25% and it was in 2025.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 27% with 5 year coverage at 24%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 27% with 5 year coverage at 26%. The DPR for 2024 for Cash Flow per Share (CFPS) is non-calculable due to negative cash Flow. For this case I also looked at the DPR for 2024 for Cash Flow per Share without Working Capital and for 2024 it is good at 9% with 5 year coverage at 9%. The DPR for 2024 for Free Cash Flow is non-calculable due to negative FCF. However, the values given for FCF varies greatly.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 27.42% | 24.63% |
| AEPS | 26.75% | 25.60% |
| CFPS | -15.85% | -18.04% |
| CFPS WC | 8.91% | 9.14% |
| FCF | -12.22% | -14.06% |
Debt Ratios are showing that the company has too much debt. The Long Term Debt/Market Cap Ratio for 2024 is far too high at 1.31 and currently at 1.54. The Liquidity Ratio for 2024 is good at 1.51 and 1.53 currently. The Debt Ratio for 2024 is fine but low at 1.30 and 1.28 currently. I like to see this ratio at 1.50 or higher. The Leverage and Debt/Equity Ratios for 2024 are far too high at 4.32 and 3.32 and currently at 4.62 and 3.62. I like to see these ratios below 3.00 and below 2.00.
| Type | Ratio '22 | Ratio Curr |
|---|---|---|
| Lg Term R | 1.31 | 1.54 |
| Intang/GW | 0.11 | 0.12 |
| Liquidity | 1.51 | 1.53 |
| Liq. + CF | 1.10 | 0.97 |
| Debt Ratio | 1.30 | 1.28 |
| Leverage | 4.32 | 4.62 |
| D/E Ratio | 3.32 | 3.62 |
The Total Return per year is shown below for years of 5 to 29 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 31.08% | 22.13% | 19.11% | 3.03% |
| 2014 | 10 | 28.65% | 26.31% | 23.58% | 2.73% |
| 2009 | 15 | 18.29% | 24.66% | 21.95% | 2.71% |
| 2004 | 20 | 19.83% | 15.75% | 13.75% | 2.00% |
| 1999 | 25 | 12.71% | 11.77% | 0.94% | |
| 1995 | 29 | 8.25% | 7.65% | 0.60% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 6.39, 10.64 and 12.58. The corresponding 10 year ratios are 8.80, 11.11 and 14.11. The corresponding historical ratios are 9.34, 11.97 and 15.12. The current P/E Ratio is 9.66 based on a stock price of $153.53 and EPS estimate for 2025 of $15.89. The current ratio is below the low ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap.
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Earnings per Share Ratios are 8.34, 10.67 and 13.16. The corresponding 10 year ratios are 8.23, 10.73 and 13.43. The corresponding historical ratios are 8.54, 11.42 and 14.52. The current P/E Ratio is 8.61 based on a stock price of $153.53 and AEPS estimate for 2025 of $17.84. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a Graham Price of $168.82. The 10-year low, median, and high median Price/Graham Price Ratios are 0.74, 0.98 and 1.29. The current P/GP Ratio is 0.91 based on a stock price of $153.53. The current ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 2.06. The current ratio is 2.16 based on a stock price of $153.53, Book Value of $1,152M and Book Value per Share of $71.00. The current ratio is 5% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I also have a Book Value per Share estimate for 2025 of $78.94. This implies a ratio of 1.94 based on a stock price of $153.53 and Book Value of $1,281M. This ratio is 5% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I can do a 10-year median Price/Cash Flow per Share Ratio test because of negative cash flow.
I get an historical median dividend yield of 2.33%. The current dividend yield is 3.80% based on a stock price of $153.53 and dividends of $5.84. The current dividend yield is 63% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 2.21%. The current dividend yield is 3.80% based on a stock price of $153.53 and dividends of $5.84. The current dividend yield is 72% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 1.35. The current ratio is 1.49 based on Revenue estimate for 2025 of $1,672M, Revenue per Share of $103.01 and a stock price of $153.53. The current ratio is 10% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median.
Results of stock price testing is that the stock price might be reasonable and could be cheap. The dividend yield tests say that the stock price is relatively cheap, but this is not confirmed by the P/S Ratio test which says that the stock price is reasonable but above the median. The rest of the testing is saying the stock is either cheap or reasonable with it being above the below the median.
When I look at analysts’ recommendations, I find Strong buy (3), Buy (5), and Hold (1). The consensus would be a Strong Buy. The 12 month stock price consensus is $212.56 with a high of $300.00 and low of $171.00. The 12 month consensus stock price of $212.56 implies a total return of 42.25% with 38.45% from capital gains and 3.80% from dividends based on a current stock price of $153.53.
There are a number of entries on Stock Chase for 2025. Analysts like this company. There is one Hold and that analyst says there is an overhang as the respected CEO is retiring. Amy Legate-Wolfe on Motley Fool says to buy for income and growth. Jitendra Parashar on Motley Fool says buy this beaten-down financial stock for strong returns in the long run. The company put out a press release on Newswire about their fourth quarter of 2024. The company put out a press release on Newswire about their first quarter of 2025.
Simply Wall Street via Yahoo Finance talk about this company’s insider ownership. Simply Wall Street via Yahoo Finance talk about the company’s first quarterly results. Simply Wall Street has two warnings on this stock of debt is not well covered by operating cash flow; and dividend of 3.82% is not well covered by free cash flows.
Goeasy Ltd is a financial services company. A majority of its revenue is generated from the easyfinancial segment, which lends out capital in the form of unsecured and secured consumer loans to nonprime borrowers. This segment offers unsecured and real estate secured installment loans and also specializes in financing consumer purchases in the powersports, automotive, retail, healthcare, and home improvement categories. Its web site is here Goeasy Ltd .
The last stock I wrote about was about was Algonquin Power & Utilities Corp (TSX-AQN, NTSE-AQN) ... learn more. The next stock I will write about will be Lassonde Industries Inc (TSX-LAS.A, OTC-LSDAF) ... learn more on Saturday, June 21, 2025 around 5 pm, maybe.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. 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.
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