Despite ongoing trade and geopolitical uncertainties, the Canadian stock market has delivered an impressive performance. The S&P/TSX Composite Index has risen by over 31% in one year, supported by interest rate cuts and resilient consumer spending. The broader market also got a boost through a rally in basic materials stocks and growing optimism around artificial intelligence (AI).
That said, not all high-quality Canadian stocks have participated in the rally. Some remain attractively valued, and one notable example is goeasy (TSX:GSY), which is trading cheaper than it’s been in years.
What’s hurting goeasy stock?
While the broader market has advanced, goeasy’s shares have struggled. In 2025 alone, the stock is down more than 18% and currently sits about 40% below its 52-week high of $216.50. This sharp pullback has made goeasy one of the more compelling value opportunities on the TSX, particularly for investors with a long-term perspective.
The sell-off was sparked primarily by a short-seller report that raised questions around the company’s accounting practices and overall risk profile. Those concerns were compounded by higher credit-loss provisions and increased financing costs reported in the third quarter of 2025. At the same time, goeasy’s strategic shift toward secured lending has put some pressure on portfolio yields, further weighing on near-term earnings expectations. Together, these developments eroded investor confidence, even as most Canadian stocks continued to benefit from favou rable market conditions.
Despite these short-term challenges, the underlying business remains strong. The company has a proven track record of navigating economic cycles and sustaining growth while returning capital to shareholders. The business remains profitable, fundamentally strong, and well-positioned in Canada’s large subprime lending market.
goeasy to deliver steady growth ahead
goeasy appears well-positioned to deliver steady growth in the years ahead, supported by rising loan demand in the subprime market and a continued emphasis on tighter underwriting standards. The company’s expanding consumer loan portfolio, diversified funding base, and omnichannel model provide a solid foundation for sustained top-line growth.
While goeasy’s increasing focus on secured lending may weigh modestly on earnings in the near term, this strategic shift significantly lowers long-term credit risk. Over time, it should lead to more stable, predictable earnings.
Management expects gross consumer loan receivables to reach between $7.35 billion and $7.75 billion by 2027, alongside improving operating margins. These trends point to stronger earnings, which should comfortably support ongoing dividend payments and future increases. At the same time, initiatives aimed at boosting operating efficiency and maintaining disciplined credit performance will support earnings.
goeasy is also well-positioned to maintain its dividend growth streak. It has returned capital to shareholders for more than 20 years, reflecting resilience across multiple economic cycles. After earning a spot in the S&P/TSX Canadian Dividend Aristocrats Index in 2020, the company has continued to raise its payout, including a 24.8% increase announced in February 2025.
Based on its recent closing price of $129.16, the stock offers an attractive dividend yield of 4.5%.
goeasy stock is trading cheap
goeasy stock is currently trading at a forward price-to-earnings (P/E) multiple of about 6.6, which is significantly low considering the company’s growth prospects. It has a track record of delivering double-digit earnings growth and regularly increasing its dividend, while also offering an attractive yield. These factors make goeasy stock a compelling value pick.
The bottom line
While goeasy has faced near-term headwinds that have weighed on its share price, the long-term prospects remain solid. Its leadership in Canada’s subprime lending market, consistent dividend growth, and valuation near multi-year lows make goeasy stock an attractive investment opportunity.
