We can take a look at a few key ratios to determine if goeasy Ltd. (TSXV:$GSY) is a profitable investment. First, we can take a look at Return of Assets. The ROA is a ratio that compares net income against the value of the company’s total assets. This is helpful to illustrate just how efficient a company is at capitalizing on their assets.
In the case of goeasy Ltd., we see that the company has an ROA of 0.070637. This means they are making a small amount of profit on their total assets.
The ROA is not the only indicator we can utilize, however. There are several other signals that can help to determine if a company is profitable or not. For example, we can take a look at Shareholder Yield. The Shareholder Yield shows investors how much money each shareholder receives from a company through either dividends, share repurchases, or debt reduction. It is calculated by adding dividend yield to the percentage of shares repurchased.
The EBITDA Yield is also a measure of the company’s profitability. The EBITDA is calculated by dividing a company’s earnings before interest, taxes, depreciation, and amortization by the company’s enterprise value, which is calculated by taking the market cap plus debt, preferred shares, and minority interest and subtracting it by total cash and cash equivalents. This firm currently has an EBITDA yield of 15.18%.
Earnings Yield, on the other hand, is calculated by taking the operating income or earnings before interest and tax and dividing it by the previously mentioned Enterprise Value. This number is good for measuring how a company returns investments. The Earnings Yield for goeasy Ltd. is 11.09%. Earnings Yield can also be measured as an average over a five-year span. The Earnings Yield Five Year Average is 4.10%.
Dividends are the most common form of yield. There is also cash repurchases and reduction of debt, which increases the value of each share. The company currently has a Shareholder Yield of 3.21%.
Another number we can look at is the similarly named Shareholder Yield (Mebane Faber), which is calculated as dividend yield plus percentage of sales repurchased and net debt repaid. That number currently sits at -19.98%.
The Earnings to Price yield is calculated by taking earnings per share and dividing it by the last closing share price. This number is a popular method for investors to evaluate a company’s financial status. goeasy Ltd. currently has an Earnings to Price yield of 0.084294.
Price to Book ratio is measured as the company’s current share price divided by the book value per share. If the number is lower, it may signal that a company is undervalued. The company currently sits at a Price to Book ratio of 1.816192. We can also take a look at Price to Cash Flow. Similar to Price to Book, this number takes the current market value of a company by cash and divides it by operating activities. goeasy Ltd currently has a Price to Cash Flow ratio of -70.329583.
We can also take a look at some quant indicators. The company has a Piotroski F-Score of 4, a Gross Margin Score of 20, an M-Score of -1.038193, an ERP5 Rank of 2596 and a Value Composite One of 20.
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