MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
TSX:MEQ - CA5609151009 - Common Stock
192.96 CAD
-1.39 (-0.72%)
MEQ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Real Estate Management & Development industry. While MEQ belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MEQ has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MEQ had positive earnings in the past year.
MEQ had a positive operating cash flow in the past year.
MEQ had positive earnings in each of the past 5 years.
Each year in the past 5 years MEQ had a positive operating cash flow.
1.2 Ratios
MEQ has a Return On Assets of 7.95%. This is amongst the best in the industry. MEQ outperforms 96.67% of its industry peers.
MEQ has a Return On Equity of 17.98%. This is amongst the best in the industry. MEQ outperforms 96.67% of its industry peers.
The Return On Invested Capital of MEQ (3.51%) is comparable to the rest of the industry.
MEQ had an Average Return On Invested Capital over the past 3 years of 3.11%. This is below the industry average of 7.59%.
The last Return On Invested Capital (3.51%) for MEQ is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 17.98% | ||
| ROIC | 3.51% |
ROA(3y)4.45%
ROA(5y)4.97%
ROE(3y)10.47%
ROE(5y)11.99%
ROIC(3y)3.11%
ROIC(5y)3.02%
1.3 Margins
With an excellent Profit Margin value of 112.86%, MEQ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MEQ has grown nicely.
MEQ has a better Operating Margin (58.54%) than 90.00% of its industry peers.
MEQ's Operating Margin has been stable in the last couple of years.
MEQ has a better Gross Margin (65.68%) than 63.33% of its industry peers.
In the last couple of years the Gross Margin of MEQ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.54% | ||
| PM (TTM) | 112.86% | ||
| GM | 65.68% |
OM growth 3Y2.22%
OM growth 5Y1.13%
PM growth 3Y-17.21%
PM growth 5Y13.4%
GM growth 3Y1.64%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MEQ is destroying value.
Compared to 1 year ago, MEQ has more shares outstanding
Compared to 5 years ago, MEQ has less shares outstanding
Compared to 1 year ago, MEQ has an improved debt to assets ratio.
2.2 Solvency
MEQ has an Altman-Z score of 1.34. This is a bad value and indicates that MEQ is not financially healthy and even has some risk of bankruptcy.
MEQ has a Altman-Z score (1.34) which is comparable to the rest of the industry.
The Debt to FCF ratio of MEQ is 21.84, which is on the high side as it means it would take MEQ, 21.84 years of fcf income to pay off all of its debts.
MEQ has a Debt to FCF ratio (21.84) which is in line with its industry peers.
A Debt/Equity ratio of 0.98 indicates that MEQ is somewhat dependend on debt financing.
MEQ has a Debt to Equity ratio of 0.98. This is in the lower half of the industry: MEQ underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.41
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.57 indicates that MEQ should not have too much problems paying its short term obligations.
MEQ has a Current ratio of 1.57. This is in the better half of the industry: MEQ outperforms 73.33% of its industry peers.
MEQ has a Quick Ratio of 1.55. This is a normal value and indicates that MEQ is financially healthy and should not expect problems in meeting its short term obligations.
MEQ's Quick ratio of 1.55 is fine compared to the rest of the industry. MEQ outperforms 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 144.49% over the past year.
Measured over the past years, MEQ shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.81% on average per year.
The Revenue has grown by 14.29% in the past year. This is quite good.
Measured over the past years, MEQ shows a quite strong growth in Revenue. The Revenue has been growing by 12.67% on average per year.
EPS 1Y (TTM)144.49%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%394.12%
Revenue 1Y (TTM)14.29%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%10.02%
3.2 Future
MEQ is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -33.14% yearly.
The Revenue is expected to grow by 9.00% on average over the next years. This is quite good.
EPS Next Y-35.12%
EPS Next 2Y-33.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.05%
Revenue Next 2Y9%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.84, which indicates a rather cheap valuation of MEQ.
Based on the Price/Earnings ratio, MEQ is valued cheaply inside the industry as 90.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MEQ to the average of the S&P500 Index (27.03), we can say MEQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 20.12, the valuation of MEQ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEQ indicates a rather cheap valuation: MEQ is cheaper than 83.33% of the companies listed in the same industry.
MEQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.54, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 20.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEQ is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
MEQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.63 | ||
| EV/EBITDA | 21.2 |
4.3 Compensation for Growth
MEQ has an outstanding profitability rating, which may justify a higher PE ratio.
MEQ's earnings are expected to decrease with -33.14% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-33.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MEQ has a yearly dividend return of 0.08%, which is pretty low.
MEQ's Dividend Yield is slightly below the industry average, which is at 3.21.
Compared to an average S&P500 Dividend Yield of 2.45, MEQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
MEQ does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MEQ pays out 0.41% of its income as dividend. This is a sustainable payout ratio.
DP0.41%
EPS Next 2Y-33.14%
EPS Next 3YN/A
TSX:MEQ (9/10/2025, 7:00:00 PM)
192.96
-1.39 (-0.72%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners18.93%
Inst Owner ChangeN/A
Ins Owners48.93%
Ins Owner ChangeN/A
Market Cap1.80B
Analysts80
Price Target247.35 (28.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP0.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)280.93%
Min EPS beat(2)136.3%
Max EPS beat(2)425.56%
EPS beat(4)4
Avg EPS beat(4)322.55%
Min EPS beat(4)136.3%
Max EPS beat(4)502.97%
EPS beat(8)7
Avg EPS beat(8)229.76%
EPS beat(12)11
Avg EPS beat(12)211.29%
EPS beat(16)15
Avg EPS beat(16)195.14%
Revenue beat(2)1
Avg Revenue beat(2)0.1%
Min Revenue beat(2)-0.76%
Max Revenue beat(2)0.96%
Revenue beat(4)2
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)0.96%
Revenue beat(8)6
Avg Revenue beat(8)0.51%
Revenue beat(12)8
Avg Revenue beat(12)0.45%
Revenue beat(16)8
Avg Revenue beat(16)-0.05%
PT rev (1m)2.11%
PT rev (3m)2.11%
EPS NQ rev (1m)-1.16%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)33.72%
EPS NY rev (3m)33.72%
Revenue NQ rev (1m)-2.83%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.84 | ||
| Fwd PE | 20.12 | ||
| P/S | 6.59 | ||
| P/FCF | 21.63 | ||
| P/OCF | 21.49 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 21.2 |
EPS(TTM)33.03
EY17.12%
EPS(NY)9.59
Fwd EY4.97%
FCF(TTM)8.92
FCFY4.62%
OCF(TTM)8.98
OCFY4.65%
SpS29.26
BVpS183.65
TBVpS183.59
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.95% | ||
| ROE | 17.98% | ||
| ROCE | 4.3% | ||
| ROIC | 3.51% | ||
| ROICexc | 3.73% | ||
| ROICexgc | 3.73% | ||
| OM | 58.54% | ||
| PM (TTM) | 112.86% | ||
| GM | 65.68% | ||
| FCFM | 30.49% |
ROA(3y)4.45%
ROA(5y)4.97%
ROE(3y)10.47%
ROE(5y)11.99%
ROIC(3y)3.11%
ROIC(5y)3.02%
ROICexc(3y)3.18%
ROICexc(5y)3.07%
ROICexgc(3y)3.18%
ROICexgc(5y)3.07%
ROCE(3y)3.81%
ROCE(5y)3.69%
ROICexcg growth 3Y9.44%
ROICexcg growth 5Y2.52%
ROICexc growth 3Y9.45%
ROICexc growth 5Y2.53%
OM growth 3Y2.22%
OM growth 5Y1.13%
PM growth 3Y-17.21%
PM growth 5Y13.4%
GM growth 3Y1.64%
GM growth 5Y0.48%
F-Score7
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.84 | ||
| Debt/EBITDA | 10.49 | ||
| Cap/Depr | 80.88% | ||
| Cap/Sales | 0.19% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 52.2% | ||
| Profit Quality | 27.02% | ||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.55 | ||
| Altman-Z | 1.34 |
F-Score7
WACC8.47%
ROIC/WACC0.41
Cap/Depr(3y)71.84%
Cap/Depr(5y)580.03%
Cap/Sales(3y)0.34%
Cap/Sales(5y)3.26%
Profit Quality(3y)50.84%
Profit Quality(5y)41.57%
High Growth Momentum
Growth
EPS 1Y (TTM)144.49%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%394.12%
EPS Next Y-35.12%
EPS Next 2Y-33.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)14.29%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%10.02%
Revenue Next Year11.05%
Revenue Next 2Y9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y19.79%
EBIT growth 3Y18.61%
EBIT growth 5Y13.94%
EBIT Next Year60.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y22.91%
FCF growth 3Y93.64%
FCF growth 5Y19.24%
OCF growth 1Y22.94%
OCF growth 3Y36.95%
OCF growth 5Y17.71%