The company moved quickly during the financial crisis and launched its second segment, easyfinancial, a non-prime consumer lending company that bridges the all-too-massive gap between traditional lenders and predatory payday lenders.įinancing options include secured or unsecured installment loans ranging from $500 to $45,000, with interest rates starting at 19.99%. The real growth engine is a newer segment, which is in the earlier stages of growth. But this segment is stable and operating margins are attractive. The segment has shrunk since, and 2020 wasn’t the best of years due to the pandemic. Growth in the easyhome segment hit a brick wall in 20 during the financial crisis when revenue topped out at around $170 million. (My inner voice is screaming for these clients to just say “NO” to financing that comfy couch – go get a cheap used one you can afford!) I guess that’s what unsecured, non-prime borrowers pay these days. To be clear, the fixed annual interest rate is far from cheap at 29.99%. Revenue in the easyhome segment hit a record $38.4 million in Q4, which was reported earlier this month. Easyhome is Canada’s largest lease-to-own company and helps customers acquire brand-name household furniture, appliances and electronics from both corporate and franchise stores, and pay for them under weekly or monthly leasing agreements. In the early years goeasy’s growth came from its first division, easyhome. Revenue has grown every year since 2001 and has been up double digits every year since 2013, with the exception of 2020 (thanks, pandemic). The $2.4 billion market cap, Ontario-based company was founded in 1990. Why wait, when you can live better right now?! The pitch is that it is a “… leading full-service provider of goods and alternative financial services that provides everyday Canadians with a chance for a better tomorrow, today.” Note: All prices stated below are in Canadian dollars (CAD$), unless otherwise noted.Ĭanadians looking for alternative, non-prime financing solutions, or a little help leasing furniture, appliances or consumer electronics, can turn to one small cap Canadian stock that has been delivering handsome returns to shareholders for years. These 2 Canadian Small-Cap Stocks Are Looking Good Canadian Small-Cap Stock #1: goeasy (GSY.TO, EHMEF) Here are two I think look particularly compelling right now. There are more than a few Canadian small-cap stocks worthy of your attention right now. Some companies go public directly on the Toronto Stock Exchange, while others uplist from Vancouver once they satisfy the listing requirements. These are comparatively more established companies and there is a wider selection of stocks to choose from.
The second bucket is the Toronto Stock Exchange.
Additionally, each company must have a market cap of over $5 million and a share price greater than $0.25. It covers the exchange’s 50 best-performing stocks over the last calendar year based on three equally weighted criteria: market cap growth, share price appreciation and trading volume amount. The Venture 50 list is published at the beginning of every year by the TSX Venture Exchange. Find out which stocks you should buy this month to make money in this volatile market.