Goeasy Ltd. (TSX:GSY) is a Mississauga-based company that provides alternative financial services to its client base. This includes merchandise leasing of household furnishings and home electronic products. Goeasy stock has climbed 11.7% in 2018 so far. The stock was up 0.43% in late afternoon trading on May 16.
Tightening credit conditions in Canada are giving rise to alternative financial services. Goeasy is one of several companies that are offering ways for consumers to finance purchases without bank-issued credit. This makes it an attractive target going forward.
Goeasy released its first quarter results on May 1. The company reported revenue of $114.8 million which represented a 21.8% increase from Q1 2017. Its consumer loans receivable portfolio surged 55.5% year-over-year to $601.7 million. Loan originations hit an all-time high of $202.4 million – up 90.7% year over year. The growth of the loan book soared $354.6% to $75.2 million in the quarter.
Operating income at Goeasy increased 22.1% to $24.9 million in the first quarter and net income rose 7.8% to $11.1 million.
Goeasy reported total assets of $755.4 million as at March 31, 2018, which represented a 43.5% increase from the prior year. This was driven by the significant growth in its loans receivable portfolio. The board of directors also approved a quarterly dividend of $0.225 per share thereby representing a 1.8% dividend yield. Goeasy remains an attractive addition for its growth potential in May.
