MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
TSX:MEQ - Toronto Stock Exchange - CA5609151009 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to MEQ. MEQ was compared to 29 industry peers in the Real Estate Management & Development industry. MEQ scores excellent on profitability, but there are some minor 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.
MEQ had positive earnings in each of the past 5 years.
In the past 5 years MEQ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MEQ (6.44%) is better than 89.66% of its industry peers.
MEQ has a better Return On Equity (14.74%) than 89.66% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.50%, MEQ is in the better half of the industry, outperforming 65.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MEQ is significantly below the industry average of 11.23%.
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
MEQ has a Profit Margin of 92.13%. This is amongst the best in the industry. MEQ outperforms 96.55% of its industry peers.
In the last couple of years the Profit Margin of MEQ has grown nicely.
The Operating Margin of MEQ (57.61%) is better than 96.55% 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 72.41% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEQ is destroying value.
The number of shares outstanding for MEQ has been increased compared to 1 year ago.
Compared to 5 years ago, MEQ has less shares outstanding
MEQ has a better debt/assets ratio than last year.
2.2 Solvency
MEQ has an Altman-Z score of 1.31. This is a bad value and indicates that MEQ is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.31, MEQ perfoms like the industry average, outperforming 55.17% of the companies in the same industry.
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.
MEQ has a better Debt to FCF ratio (21.50) than 62.07% of its industry peers.
A Debt/Equity ratio of 0.96 indicates that MEQ is somewhat dependend on debt financing.
MEQ has a Debt to Equity ratio of 0.96. This is comparable to the rest of the industry: MEQ outperforms 55.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 21.5 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.49
WACC7.1%
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 48.28% of its industry peers.
MEQ has a Quick Ratio of 1.01. This is a normal value and indicates that MEQ is financially healthy and should not expect problems in meeting 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
The Earnings Per Share has grown by an impressive 39.46% 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.
Looking at the last year, MEQ shows a quite strong growth in Revenue. The Revenue has grown by 16.22% in the last year.
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)39.46%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%172.02%
Revenue 1Y (TTM)16.22%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%11.94%
3.2 Future
The Earnings Per Share is expected to decrease by -32.61% on average over the next years. This is quite bad
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.
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
Based on the Price/Earnings ratio of 7.39, the valuation of MEQ can be described as very cheap.
Based on the Price/Earnings ratio, MEQ is valued cheaper than 86.21% of the companies in the same industry.
MEQ is valuated cheaply when we compare the Price/Earnings ratio to 26.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.96, MEQ is valued on the expensive side.
Based on the Price/Forward Earnings ratio, MEQ is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
MEQ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 19.96 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MEQ is on the same level as its industry peers.
MEQ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 22.13 |
4.3 Compensation for Growth
The excellent profitability rating of MEQ 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)0.27
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 3.57, MEQ is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, 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 0.46% of its income as dividend. This is a sustainable payout ratio.
DP0.46%
EPS Next 2Y-32.61%
EPS Next 3YN/A
TSX:MEQ (5/29/2025, 7:00:00 PM)
194.47
+0.24 (+0.12%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners19.08%
Inst Owner ChangeN/A
Ins Owners48.93%
Ins Owner ChangeN/A
Market Cap1.81B
Analysts76.67
Price Target239.7 (23.26%)
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)0%
EPS NQ rev (1m)2.55%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)5.07%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)1.17%
Revenue NY rev (3m)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.39 | ||
| Fwd PE | 19.96 | ||
| P/S | 6.8 | ||
| P/FCF | 21.57 | ||
| P/OCF | 21.45 | ||
| P/B | 1.09 | ||
| P/tB | 1.09 | ||
| EV/EBITDA | 22.13 |
EPS(TTM)26.33
EY13.54%
EPS(NY)9.74
Fwd EY5.01%
FCF(TTM)9.02
FCFY4.64%
OCF(TTM)9.07
OCFY4.66%
SpS28.58
BVpS178.69
TBVpS178.64
PEG (NY)N/A
PEG (5Y)0.27
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 | 1.31 |
F-Score7
WACC7.1%
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)39.46%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%172.02%
EPS Next Y-51.48%
EPS Next 2Y-32.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)16.22%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%11.94%
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%