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Yahoo
19-04-2025
- Business
- Yahoo
A Misunderstood Growth Stock Down 23%: Why I'm Considering goeasy for a $5,000 Investment
Written by Kay Ng at The Motley Fool Canada When a proven growth stock falls over 20% from its highs, many investors get nervous. But I get interested. goeasy (TSX:GSY), a leading Canadian non-prime lender, is currently down 23% from its 52-week high of $206. While many are quick to dismiss it amid recession fears and geopolitical tension — including a new round of U.S. tariff risks — I see this pullback as a compelling buying opportunity. Here's why I'm seriously considering putting $5,000 into this misunderstood financial powerhouse. Volatility isn't new for goeasy. Since its founding in 1990, the company has weathered all kinds of market conditions — and rewarded long-term investors handsomely. In the past decade alone, goeasy has delivered a jaw-dropping 25% annualized return, turning a $1,000 investment into more than $9,400. This level of compounding is no accident. It was driven by earnings-per-share growth of over 27% annually, with returns coming from consistent dividend payments and capital appreciation. While the current correction feels significant, zooming out shows it's more of a blip in an otherwise impressive growth story. At around $158 per share, goeasy trades at a price-to-earnings (P/E) ratio of approximately nine — well below its historical average. That represents a discount of roughly 25%, even as the business continues to grow and generate income. Notably, the current dividend yield is 3.7%, which is substantially higher than its 10-year average of 2.2%. This elevated yield not only boosts income potential but also signals undervaluation. Analysts agree: the average 12-month price target is $235, implying nearly 49% upside from current levels. What really excites me about goeasy isn't just the numbers — but the business model. The company focuses on serving Canada's underserved non-prime borrowers, a segment often ignored by traditional financial institutions like the big banks. It now has over $4 billion in consumer loans on the books and has originated more than $16 billion to date. goeasy operates more than 400 physical locations while maintaining a strong digital presence, creating an effective omnichannel platform. Strategic acquisitions like LendCare have further diversified its offerings into point-of-sale financing in industries such as automotive and healthcare. Perhaps most impressively, about 60% of its customers see improvements in their credit scores, showing the company's focus on financial empowerment — not just profit. This creates brand loyalty and long-term repeat business, helping cement goeasy's position in the Canadian lending landscape. Even if goeasy's earnings growth slows to 15% annually (which is still good growth) over the next five years and its P/E multiple only modestly expands to 10.5, investors could still see annual returns of around 20%. That would be enough to double your money in under four years. So yes, the stock is down. But from where I'm standing, this is exactly the kind of misunderstood growth story I want to be part of. And that's why goeasy is firmly on my radar for a $5,000 investment. If investors are worried about a recession looming but are confident in the business, they can split their investment and average into a full position over time. The post A Misunderstood Growth Stock Down 23%: Why I'm Considering goeasy for a $5,000 Investment appeared first on The Motley Fool Canada. Before you buy stock in goeasy, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and goeasy wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $20,697.16!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*. See the Top Stocks * Returns as of 3/20/25 More reading Best Canadian Stocks to Buy in 2025 Market Volatility Toolkit 4 Secrets of TFSA Millionaires Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Kay Ng has positions in goeasy. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Yahoo
20-02-2025
- Business
- Yahoo
3 TSX Growth Companies With High Insider Ownership And 27 Percent Revenue Growth
As Canadian markets navigate a complex landscape of persistent inflation and shifting leadership in sectors, investors are keenly observing how these factors influence growth opportunities. In this environment, companies with high insider ownership and robust revenue growth stand out as potentially strong contenders, offering alignment of interests between management and shareholders amidst the broader economic crosscurrents. Name Insider Ownership Earnings Growth Propel Holdings (TSX:PRL) 36.5% 38.7% Robex Resources (TSXV:RBX) 25.4% 141.5% Orla Mining (TSX:OLA) 11.5% 50.5% West Red Lake Gold Mines (TSXV:WRLG) 13.5% 77.6% goeasy (TSX:GSY) 21.3% 15.8% VersaBank (TSX:VBNK) 10.7% 45.3% Aritzia (TSX:ATZ) 18.6% 45.1% Enterprise Group (TSX:E) 32.2% 26.7% Allied Gold (TSX:AAUC) 17.7% 81.7% CHAR Technologies (TSXV:YES) 10.8% 60.5% Click here to see the full list of 35 stocks from our Fast Growing TSX Companies With High Insider Ownership screener. Let's uncover some gems from our specialized screener. Simply Wall St Growth Rating: ★★★★☆☆ Overview: First National Financial Corporation, with a market cap of CA$2.47 billion, operates in Canada by originating, underwriting, and servicing commercial and residential mortgages through its subsidiaries. Operations: The company's revenue is derived from two main segments: CA$215.53 million from commercial mortgages and CA$423.75 million from residential mortgages in Canada. Insider Ownership: 38.4% Revenue Growth Forecast: 14.0% p.a. First National Financial demonstrates strong insider ownership with substantial insider buying over the past three months, indicating confidence in its growth prospects. The company trades at a good value compared to peers and is 42.7% below its estimated fair value. While revenue growth of 14% annually is slower than the desired 20%, it still surpasses the Canadian market average. Additionally, First National offers an attractive dividend yield of 6.07%, appealing to income-focused investors. Get an in-depth perspective on First National Financial's performance by reading our analyst estimates report here. Insights from our recent valuation report point to the potential undervaluation of First National Financial shares in the market. Simply Wall St Growth Rating: ★★★★★☆ Overview: goeasy Ltd. offers non-prime leasing and lending services through its easyhome, easyfinancial, and LendCare brands to Canadian consumers, with a market cap of CA$2.87 billion. Operations: The company generates revenue from its Easyhome segment at CA$152.88 million and its Easyfinancial segment at CA$1.37 billion. Insider Ownership: 21.3% Revenue Growth Forecast: 27.8% p.a. goeasy shows a mix of strengths and challenges, with high insider ownership and significant insider selling in recent months. The company trades at good value compared to its peers, despite being 53.5% below estimated fair value. Revenue is forecast to grow at 27.8% annually, outpacing the Canadian market significantly. However, the dividend yield of 3.35% is not well covered by free cash flows, raising sustainability concerns amidst robust revenue growth expectations and a recent dividend increase. Click here to discover the nuances of goeasy with our detailed analytical future growth report. Our comprehensive valuation report raises the possibility that goeasy is priced lower than what may be justified by its financials. Simply Wall St Growth Rating: ★★★★☆☆ Overview: Vitalhub Corp. offers technology solutions for health and human service providers across several regions including Canada, the United States, the United Kingdom, Australia, and Western Asia, with a market cap of CA$597.18 million. Operations: The company's revenue is primarily derived from its Healthcare Software segment, which generated CA$61.61 million. Insider Ownership: 14.6% Revenue Growth Forecast: 19% p.a. Vitalhub demonstrates strong growth potential with revenue expected to increase by 19% annually, outpacing the Canadian market. Despite recent shareholder dilution, it trades at a substantial discount to its estimated fair value. The company has bolstered financial flexibility through expanded credit facilities and raised CAD 30 million via a follow-on equity offering. Its SHREWD platform enhances healthcare system integration, supporting significant operational improvements for clients like the Winnipeg Regional Health Authority and NHS England. Delve into the full analysis future growth report here for a deeper understanding of Vitalhub. Our expertly prepared valuation report Vitalhub implies its share price may be lower than expected. Access the full spectrum of 35 Fast Growing TSX Companies With High Insider Ownership by clicking on this link. Hold shares in these firms? Setup your portfolio in Simply Wall St to seamlessly track your investments and receive personalized updates on your portfolio's performance. Take control of your financial future using Simply Wall St, offering free, in-depth knowledge of international markets to every investor. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Diversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks analysis only considers stock directly held by insiders. It does not include indirectly owned stock through other vehicles such as corporate and/or trust entities. All forecast revenue and earnings growth rates quoted are in terms of annualised (per annum) growth rates over 1-3 years. Companies discussed in this article include TSX:FN TSX:GSY and TSX:VHI. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
