This is a paid premium stock research report that is temporarily available for FREE. goeasy Ltd. (OTCPK:EHMEF, TSX:GSY) offers an excellent combo of good value, high growth, consistency, a modest dividend, and a history of outperforming the market by a large margin. The company operates in the Canadian subprime lending business. Although still somewhat risky, the subprime lending market is surprisingly more resilient than the prime lending market.
goeasy operates through two segments: easyfinancial and easyhome. Making up 78% of their revenue, 'easyfinancial' provides installment loans, secured saving loans, loan protection plans, and other various services. 'easyhome', representing 22% of revenue, leases home products such as furniture, computers, and appliances. By focusing on subprime loans that are $45,000 or less, the company operates in an overlooked niche market that is too small for the big banks to go after.
We estimate goeasy to be valued at 79.81 CAD or 60.52 USD (calculation can be found in full article).
The non-prime lending market in Canada is estimated to be $231 billion. goeasy defines its addressable market as the 14% of subprime loans that are less than $45,000. Of this $33 billion market, goeasy controls about 4%.
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