Q: Hello 5i Team,
I see Propel raised its dividend by 14% today. I'm thinking about trimming 1/2 of my GoEasy and adding to my Propel holding. Thesis: management owns 56% of Propel and they are playing in a bigger sandbox in the US. What are your thoughts?
Thanks,
Brent
I see Propel raised its dividend by 14% today. I'm thinking about trimming 1/2 of my GoEasy and adding to my Propel holding. Thesis: management owns 56% of Propel and they are playing in a bigger sandbox in the US. What are your thoughts?
Thanks,
Brent
5i Research Answer:
We continue to like GSY, but PRL can benefit from lower rates, and it pays a good yield of 2.5%, analyst estimates are quite positive for the next few years, and its profit margins have been expanding. It continues to trade at a decent valuation of 8.8X forward earnings. While we cannot personalize responses, overall, we are more comfortable with GSY, given its larger size and history of profitability, if one is looking for a higher growth, smaller name, we would be comfortable with adding to PRL.