Sometimes the smartest move in investing is to stay simple: choose a company with a strong track record, reliable income, and room to grow. That’s what makes goeasy (TSX:GSY) such a compelling stock to consider, especially if you’re looking to invest $8,300 right now. It’s one of the top financial services stocks on the TSX, and it’s trading at a level that makes a mid-size investment like this one worth a serious look. With a share price around $146 at writing, you’d have meaningful exposure to one of the most consistent performers in the Canadian non-prime lending space.
The stock
goeasy is based in Mississauga and operates through three key brands. The first is easyfinancial, which offers personal loans to consumers who don’t qualify for traditional credit. Then there’s easyhome, a lease-to-own service for furniture and electronics. Finally, there’s LendCare, a fast-growing point-of-sale financing solution used across sectors like healthcare, retail, and auto repair.
In the first quarter of 2025, goeasy stock reported revenue of $392 million, up 9.7% from the year before. The company’s loan portfolio reached $4.8 billion, a 24% increase year over year, thanks to growing demand and expansion in secured lending. What’s impressive here is not just the raw numbers but what they say about goeasy’s positioning. While the broader financial services sector has been wrestling with rising delinquencies and tightening credit, goeasy has managed to grow responsibly. In fact, the average credit score of its new originations reached 632 this quarter, the highest in its history. That shows goeasy is attracting higher-quality borrowers even as it expands.
That said, earnings in Q1 were lower compared to the same quarter in 2024. Net income came in at $39.4 million, or $2.32 per share, compared to $58.9 million, or $3.40 per share last year. The dip was mainly due to a drop in loan yield and a higher allowance for credit losses, which is a cautionary adjustment as economic conditions remain a bit shaky. Still, operating income actually rose to $145 million, up 5% year over year, and the company improved its efficiency ratio from 27.4% to 26.1%. That means it’s doing more with less, a positive sign, especially in a high-inflation environment.
Looking ahead
goeasy stock hasn’t just focused on operations, either. It secured $565 million in new capital during the quarter, bringing its total funding capacity to $2 billion. That gives it ample runway to continue growing its loan book without having to tap expensive or restrictive sources of funding. The company also repurchased about $96 million in shares recently, which signals that management believes the stock is undervalued at current levels. Those are the kinds of moves long-term investors want to see.
Then there’s the dividend. goeasy has one of the more attractive dividend profiles on the TSX. Its forward yield sits at around 4%, and the company has increased its payout for several years in a row. With your $8,300 investment, you could expect over $330 annually in tax-free income if you’re holding the shares in a Tax-Free Savings Account (TFSA). That kind of reliable monthly income can be a big advantage for investors focused on long-term returns without needing to time the market.
Analyst sentiment on the stock is also strong. The average 12-month price target for goeasy is $211.30, which suggests a potential upside of more than 44% from today’s price. That kind of appreciation, combined with a solid dividend, makes goeasy a stock that fits well in any growth-plus-income strategy. That discount may not last forever, especially if earnings start to pick back up in the second half of 2025.
Bottom line
Ultimately, goeasy offers a rare blend of predictability and upside. It’s a company that understands its customers, manages its risks well, and has proven over time that it can grow without taking on excessive debt or diluting shareholders. If you’ve got $8,300 to invest right now and want a stock that gives you growth potential, reliable dividends, and strong fundamentals, goeasy might just be the smartest financial services stock on the TSX to buy today.
