While the broader markets continue to deliver stellar returns in 2025, several individual stocks have underperformed the TSX index. One such Canadian stock is goeasy (TSX:GSY), which is down 35% from all-time highs.
Despite the ongoing drawdown, the TSX dividend stock has returned close to 800% to shareholders in the past decade. Moreover, it offers a forward yield of 4.4%, based on an annual dividend per share of $5.84 in 2025.
Valued at a market cap of $2.25 billion, GSY is part of the financial lending segment. In the last three decades, goeasy has served 1.6 million customers and originated $18.5 billion in total loans.
With more than 400 locations across Canada, goeasy provides non-prime leasing and lending services under the easyhome, easyfinancial, and LendCare brands to consumers.
It offers unsecured and secured installment loans, home equity and home improvement loans, secured installment loans, and automotive vehicle financing, and more. goeasy also leases household furniture, appliances, electronics, and unsecured lending products to retail consumers.
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Is this TSX stock a good buy?
goeasy delivered solid third-quarter results despite navigating a challenging macroeconomic environment and a short-seller report. In the third quarter (Q3) of 2025, goeasy reported record revenue of $440 million, up 15% year over year. It ended Q3 with a consumer loan portfolio of $5.44 billion and originations of $946 million.
While loan applications rose 22% year over year, loan originations rose 13%. Goeasy maintained balanced growth across both secured and unsecured products, with secured loans now accounting for 48% of the total portfolio.
This shift toward collateralized lending provides additional downside protection while compressing overall portfolio yields. Management adjusted fourth-quarter yield expectations to a range of 30.5% to 31.5% to reflect the ongoing transition away from loans originated above the federal rate cap of 35% implemented earlier this year.
Net charge-offs improved 30 basis points year over year to 8.9%, driven by higher secured loan composition and optimized collections processes.
However, early-stage delinquencies increased by 60 basis points from the prior quarter to 4.5%, prompting management to increase the allowance for credit losses from 7.9% to 8.1%. This 21-basis-point provision increase reduced adjusted earnings per share by approximately $0.50 in the quarter, bringing earnings per share to $4.12.
Management provided transparency around two areas receiving investor scrutiny. Interest receivable increased to $142 million, driven by portfolio growth, the mix shift toward secured loans that remain on books longer, and the utilization of borrower assistance programs.
Approximately 10% of borrowers currently use these assistance tools, which help customers maintain payment obligations during periods of financial stress while allowing the company to avoid costly legal actions and asset repossessions.
The company’s balance sheet remains well-capitalized following a successful $796 million senior unsecured notes offering in August. This transaction, which was upsized due to strong investor demand, provides ample liquidity to fund organic growth.
Is the TSX stock still undervalued?
goeasy’s free cash flow stood at $393 million in the last 12 months. Analysts forecast adjusted earnings to grow from $16.44 per share in 2025 to $24.77 per share in 2027.
If GSY stock is priced at seven times forward earnings, it should trade around $173 in December 2026, indicating an upside potential of 23% from current levels.
The company’s annual dividend per share is expected to increase to $7.37 per share in 2027, up from $0.40 per share in 2015, enhancing the yield at cost significantly.
