When the stock market rallies, it’s easy for some great stocks to get overlooked — especially if they’re outside the spotlight of big banks or flashy fintechs. But sometimes, the best investment opportunities are hiding in plain sight.
One such stock is goeasy (TSX:GSY), a top non-prime lender that has carved out a unique space in Canadian financial sector. While the broader TSX has pushed to new highs in 2025, GSY is still down around 28% from its 52-week high. Nevertheless, the company continues to post strong financial results, expand its loan book responsibly, and generate strong cash flow, all while maintaining a healthy dividend.
In this article, let’s take a closer look at why goeasy is one of the most overlooked cash flow machines on the TSX, and why that could change soon.
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Why GSY stock has been under pressure
If you don’t know it already, goeasy focuses on serving non-prime borrowers in Canada, offering personal loans, home equity solutions, and lease-to-own financing for household needs. Its footprint spans over 400 locations, supported by a strong online platform.
GSY stock is currently trading at $147.73 per share, with a market cap of $2.4 billion. It also offers a quarterly dividend with an annualized yield of about 4%. Despite its strong fundamentals, this financial stock is still down more than 28% from its 52-week high, even as the broader TSX moves higher.
Now, let’s connect the dots on why the stock has lagged of late. A few things could be weighing on its investors’ sentiments in recent months. For one, the company’s adjusted earnings in the first quarter fell 8% YoY (year over year) to $3.53 per share. A higher allowance for credit losses also pressured its free cash flow.
But while some of these headwinds may have spooked goeasy’s investors short term, the bigger picture remains strong. The company’s loan book is still growing at a healthy pace, with $677 million in originations last quarter. More importantly, its quarterly net charge-off rate actually improved to 8.9%, showing that it continues to lend responsibly even in uncertain economic conditions.
Revenue is growing, and so is its customer base
Despite the recent dip in adjusted earnings, goeasy’s top line continues to climb. In the latest quarter, its total revenue jumped 10% YoY to hit $392 million. Similarly, its loan applications rose by 10% from a year ago, and the company served 43,500 new customers, reflecting an increase from last year.
Meanwhile, the company also maintained its streak of positive net profit for 95 straight quarters, which is quite an achievement. While goeasy’s margins saw a minor decline, its adjusted operating profit still climbed 3% YoY to $148 million.
A well-funded growth path ahead
With $2 billion in funding capacity and a conservative balance sheet, goeasy has strong potential to keep expanding.
Even with near-term earnings volatility, goeasy is still growing its loan book, attracting new customers, maintaining solid credit performance, and rewarding investors with regular dividends. That’s the kind of cash flow machine that long-term investors may want to add to their portfolios — especially when it’s being overlooked.
