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  5. GSY: I think GSY operates only in Canada but apparently has peers in the U. [goeasy Ltd.]
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Q: I think GSY operates only in Canada but apparently has peers in the U.S. Can you compare them in terms of multiples and general outlook.
Asked by Jeff on February 21, 2024
5i Research Answer:

GSY does operate only in Canada and some US comparables include WRLD and RM. GSY currently trades at 10.4x forward earnings with EPS and revenue growth in the teens/low double digits over the next few years. WRLD trades at 9.2x forward price-to-earnings and RM at 6.0x forward price-to-earnings. RM is expected to see high EPS growth over the next two years, while revenue growth will be modest but increasing. WRLD's forecasts indicate a strong rebound in 2024 and 2025 in terms of EPS but revenue will see marginal growth. All the companies listed should benefit from industry tailwinds over the next couple years as the lending environment becomes more attractive and this is displayed in the strong EPS forecasts. We think that GSY offers a very strong entry point at current valuation levels given the solid forecasts and relative value.