Up 48% in 2023, Is goeasy Stock Worth a Buy Today?

goeasy stock has consistently outperformed the broader market. Further, there are multiple reasons to buy its stock today.

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goeasy (TSX:GSY) stock is up about 48% in 2023. Despite the notable gain in its share price, there are multiple reasons to buy this stock today. goeasy stock is a solid long-term play for investors seeking value, income, and growth. Let’s discuss these factors to understand why one should buy goeasy stock now. 

goeasy is a high-growth company 

goeasy is a leading player in Canada’s subprime lending market. The company operates through well-known brands such as easyhome, easyfinancial, and LendCare, providing unsecured and secured loans and lease-to-own merchandise options. 

What sets goeasy apart is its ability to deliver remarkable growth in all market conditions. Over the years, the company has grown its top and bottom line at a double-digit rate. For instance, its revenue has exhibited a compound annual growth rate (CAGR) of 17.7% since 2012. During this same period, goeasy’s adjusted earnings per share (EPS) showed a CAGR of 29.5%. 

It’s worth highlighting that the recent years have witnessed even more impressive growth. Notably, its top line sports a five-year CAGR of 19.62%. Moreover, its bottom line has a CAGR of 31.85% during the same period. 

While macro headwinds posed challenges in 2023, goeasy’s loan originations improved by a notable 15% in the first nine months of the year. Simultaneously, its consumer loan receivable portfolio jumped 33% year over year, reaching $3.43 billion. What stands out is that goeasy achieved a 320 basis points improvement in its efficiency ratio, accompanied by a 20% increase in adjusted EPS.

Thanks to its solid growth, this Canadian stock has made its investors rich and outperformed the broader markets with its returns. goeasy stock has grown at a CAGR of 39.4% in the last five years, delivering a significant return of about 427.89%.  

Looking ahead, its growing loan portfolio is expected to contribute to overall revenue growth. Moreover, the company’s stable credit and payment performance and operational efficiency will fortify its bottom line and support higher dividend payouts.

Earn regular income from goeasy stock

In addition to potential capital gains, investors stand to gain from goeasy’s commitment to return cash returns to its shareholders. As a recognized Dividend Aristocrat, the company has distributed dividends for 19 consecutive years. Moreover, it has consistently increased its payments for the past nine years.

With robust financial performance and expanding earnings base, goeasy is well positioned to enhance its shareholders’ returns through higher dividend disbursement in the coming years. Furthermore, with a respectable dividend yield of 2.5% (calculated based on its closing price of $153.43 on December 13), goeasy is a reliable income stock. 

Bottom line 

goeasy is a compelling stock for investors seeking high growth and income. Additionally, its stock trades at a discounted valuation, offering significant value near the current levels. Despite the recent gains, goeasy stock is trading at the next 12-month price-to-earnings multiple of 9.3, which is lower than its historical average of 12.5. Also, its double-digit earnings growth and a decent dividend yield suggest that the stock offers significant value near the current levels. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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