MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
TSX:MEQ - Toronto Stock Exchange - CA5609151009 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MEQ. MEQ was compared to 32 industry peers in the Real Estate Management & Development industry. MEQ scores excellent on profitability, but there are concerns on its financial health. MEQ has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
MEQ had positive earnings in the past year.
In the past year MEQ had a positive cash flow from operations.
Each year in the past 5 years MEQ has been profitable.
MEQ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MEQ (6.44%) is better than 93.75% of its industry peers.
With an excellent Return On Equity value of 14.74%, MEQ belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
With a Return On Invested Capital value of 3.50%, MEQ perfoms like the industry average, outperforming 59.38% of the companies in the same industry.
MEQ had an Average Return On Invested Capital over the past 3 years of 3.11%. This is below the industry average of 7.52%.
The last Return On Invested Capital (3.50%) for MEQ is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.74% | ||
| ROIC | 3.5% |
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
Looking at the Profit Margin, with a value of 92.13%, MEQ belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
In the last couple of years the Profit Margin of MEQ has grown nicely.
The Operating Margin of MEQ (57.61%) is better than 90.63% of its industry peers.
In the last couple of years the Operating Margin of MEQ has remained more or less at the same level.
MEQ has a better Gross Margin (64.77%) than 68.75% of its industry peers.
MEQ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 57.61% | ||
| PM (TTM) | 92.13% | ||
| GM | 64.77% |
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
The number of shares outstanding for MEQ has been reduced compared to 5 years ago.
The debt/assets ratio for MEQ has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.33, we must say that MEQ is in the distress zone and has some risk of bankruptcy.
MEQ has a Altman-Z score (1.33) which is in line with its industry peers.
The Debt to FCF ratio of MEQ is 21.50, which is on the high side as it means it would take MEQ, 21.50 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 21.50, MEQ is in line with its industry, outperforming 53.13% of the companies in the same industry.
MEQ has a Debt/Equity ratio of 0.96. This is a neutral value indicating MEQ is somewhat dependend on debt financing.
MEQ has a Debt to Equity ratio (0.96) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 21.5 | ||
| Altman-Z | 1.33 |
ROIC/WACC0.49
WACC7.16%
2.3 Liquidity
A Current Ratio of 1.02 indicates that MEQ should not have too much problems paying its short term obligations.
MEQ's Current ratio of 1.02 is in line compared to the rest of the industry. MEQ outperforms 43.75% of its industry peers.
A Quick Ratio of 1.01 indicates that MEQ should not have too much problems paying its short term obligations.
MEQ has a Quick ratio (1.01) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
MEQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 144.49%, which is quite impressive.
MEQ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.81% yearly.
The Revenue has grown by 18.95% in the past year. This is quite good.
The Revenue has been growing by 12.67% on average over the past years. This is quite good.
EPS 1Y (TTM)144.49%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%394.12%
Revenue 1Y (TTM)18.95%
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 -32.61% yearly.
MEQ is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.24% yearly.
EPS Next Y-51.48%
EPS Next 2Y-32.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.99%
Revenue Next 2Y9.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MEQ is valuated cheaply with a Price/Earnings ratio of 6.09.
Based on the Price/Earnings ratio, MEQ is valued cheaper than 87.50% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.82. MEQ is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 20.63, MEQ is valued on the expensive side.
84.38% of the companies in the same industry are more expensive than MEQ, based on the Price/Forward Earnings ratio.
MEQ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.24, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.09 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
MEQ's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MEQ.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.29 | ||
| EV/EBITDA | 22.52 |
4.3 Compensation for Growth
MEQ has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as MEQ's earnings are expected to decrease with -32.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-32.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MEQ has a yearly dividend return of 0.08%, which is pretty low.
Compared to an average industry Dividend Yield of 3.40, MEQ is paying slightly less dividend.
With a Dividend Yield of 0.08, MEQ pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
5.2 History
MEQ is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MEQ pays out 0.46% of its income as dividend. This is a sustainable payout ratio.
DP0.46%
EPS Next 2Y-32.61%
EPS Next 3YN/A
TSX:MEQ (8/18/2025, 7:00:00 PM)
201
-2 (-0.99%)
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 Cap1.87B
Analysts76.67
Price Target242.25 (20.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP0.46%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)325.46%
Min EPS beat(2)225.36%
Max EPS beat(2)425.56%
EPS beat(4)3
Avg EPS beat(4)240.22%
Min EPS beat(4)-192.99%
Max EPS beat(4)502.97%
EPS beat(8)7
Avg EPS beat(8)234.9%
EPS beat(12)11
Avg EPS beat(12)210.53%
EPS beat(16)15
Avg EPS beat(16)188.04%
Revenue beat(2)2
Avg Revenue beat(2)0.67%
Min Revenue beat(2)0.38%
Max Revenue beat(2)0.96%
Revenue beat(4)3
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)0.96%
Revenue beat(8)7
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)0.48%
Revenue beat(16)9
Avg Revenue beat(16)0.01%
PT rev (1m)0%
PT rev (3m)1.06%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.89%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.09 | ||
| Fwd PE | 20.63 | ||
| P/S | 7.03 | ||
| P/FCF | 22.29 | ||
| P/OCF | 22.17 | ||
| P/B | 1.12 | ||
| P/tB | 1.13 | ||
| EV/EBITDA | 22.52 |
EPS(TTM)33.03
EY16.43%
EPS(NY)9.74
Fwd EY4.85%
FCF(TTM)9.02
FCFY4.49%
OCF(TTM)9.07
OCFY4.51%
SpS28.58
BVpS178.69
TBVpS178.64
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.44% | ||
| ROE | 14.74% | ||
| ROCE | 4.29% | ||
| ROIC | 3.5% | ||
| ROICexc | 3.72% | ||
| ROICexgc | 3.72% | ||
| OM | 57.61% | ||
| PM (TTM) | 92.13% | ||
| GM | 64.77% | ||
| FCFM | 31.55% |
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 | 0.96 | ||
| Debt/FCF | 21.5 | ||
| Debt/EBITDA | 10.36 | ||
| Cap/Depr | 71.06% | ||
| Cap/Sales | 0.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.83% | ||
| Profit Quality | 34.24% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 1.33 |
F-Score7
WACC7.16%
ROIC/WACC0.49
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-51.48%
EPS Next 2Y-32.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.95%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%10.02%
Revenue Next Year10.99%
Revenue Next 2Y9.24%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y21.5%
EBIT growth 3Y18.61%
EBIT growth 5Y13.94%
EBIT Next Year60.44%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.46%
FCF growth 3Y93.64%
FCF growth 5Y19.24%
OCF growth 1Y25.26%
OCF growth 3Y36.95%
OCF growth 5Y17.71%