Rising global debt may prove to be one of the biggest economic challenges of the 2020s. Global debt is on track to reach an all-time high of more than $257 trillion in the months ahead after it increased by a stunning $9 trillion in the first three quarters of 2019.
Individual debt on the domestic front is also a major concern. The recent MNP Consumer Debt Index showed that 50% of Canadian respondents said that they were within $200 of not being able to cover their monthly bills. Almost half of respondents said that they were not confident in their ability to cover expenses without going deeper into debt.
One of the reasons Goeasy (TSX:GSY) has flourished is because Canadian consumers are looking for alternatives in this difficult climate.
Goeasy offers merchandise leasing of household furnishings, appliances, and home electronics, and it offers unsecured installment loans. In the third quarter, the company reported that its loan portfolio had climbed 38% year-over-year to $1.04 billion.
Investors can expect to see the company’s fourth-quarter and full-year results for 2019 by the middle of February. Goeasy is projecting revenue growth between 14% and 16% for fiscal 2020, and it anticipates that its gross loan receivable portfolio will reach between $1.3 billion and $1.4 billion by next year’s end.
Goeasy stock is near a 52-week high but it still possesses a favourable price-to-earnings ratio of 15 and a price-to-book value of 5. Shares have soared 84% year-over-year as of close on January 28. The stock last paid out a quarterly dividend of $0.31 per share, representing a modest 1.7% yield.
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