MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
Canada - TSX:MEQ - CA5609151009 - Common Stock
192.55 CAD
-0.45 (-0.23%)
MEQ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
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
MEQ's Return On Assets of 7.95% is amongst the best of the industry. MEQ outperforms 96.55% of its industry peers.
MEQ has a better Return On Equity (17.98%) than 96.55% of its industry peers.
MEQ has a Return On Invested Capital of 3.51%. This is comparable to the rest of the industry: MEQ outperforms 51.72% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MEQ is below the industry average of 8.03%.
The 3 year average ROIC (3.11%) for MEQ is below the current ROIC(3.51%), indicating increased profibility in the last year.
| 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
The Profit Margin of MEQ (112.86%) is better than 100.00% of its industry peers.
MEQ's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 58.54%, MEQ belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
In the last couple of years the Operating Margin of MEQ has remained more or less at the same level.
With a decent Gross Margin value of 65.68%, MEQ is doing good in the industry, outperforming 68.97% of the companies in the same industry.
MEQ's Gross Margin has been stable in the last couple of years.
| 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
MEQ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MEQ has been reduced compared to a year ago.
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.
Looking at the Altman-Z score, with a value of 1.34, MEQ is in line with its industry, outperforming 58.62% of the companies in the same industry.
MEQ has a debt to FCF ratio of 21.84. This is a negative value and a sign of low solvency as MEQ would need 21.84 years to pay back of all of its debts.
MEQ's Debt to FCF ratio of 21.84 is in line compared to the rest of the industry. MEQ outperforms 51.72% of its industry peers.
MEQ has a Debt/Equity ratio of 0.98. This is a neutral value indicating MEQ is somewhat dependend on debt financing.
MEQ has a Debt to Equity ratio of 0.98. This is comparable to the rest of the industry: MEQ outperforms 41.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 1.34 |
ROIC/WACC0.41
WACC8.61%
2.3 Liquidity
MEQ has a Current Ratio of 1.57. This is a normal value and indicates that MEQ is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.57, MEQ is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
A Quick Ratio of 1.55 indicates that MEQ should not have too much problems paying its short term obligations.
The Quick ratio of MEQ (1.55) is better than 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.55 |
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.
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 14.29% in the last year.
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)14.29%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%10.02%
3.2 Future
The Earnings Per Share is expected to decrease by -33.14% 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 9.00% yearly.
EPS Next Y-35.12%
EPS Next 2Y-33.14%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.75%
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
Based on the Price/Earnings ratio of 5.83, the valuation of MEQ can be described as very cheap.
Based on the Price/Earnings ratio, MEQ is valued cheaply inside the industry as 89.66% of the companies are valued more expensively.
MEQ is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.08, which indicates a rather expensive current valuation of MEQ.
Based on the Price/Forward Earnings ratio, MEQ is valued cheaply inside the industry as 82.76% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.86. MEQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.83 | ||
| Fwd PE | 20.08 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEQ is valued a bit cheaper than the industry average as 62.07% of the companies are valued more expensively.
MEQ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.58 | ||
| EV/EBITDA | 21.2 |
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 -33.14% in the coming years.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y-33.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.08%, MEQ is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.24, MEQ is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.38, MEQ's dividend is way lower than the S&P500 average.
| 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 0.41% of its income as dividend. This is a sustainable payout ratio.
DP0.41%
EPS Next 2Y-33.14%
EPS Next 3YN/A
TSX:MEQ (9/19/2025, 7:00:00 PM)
192.55
-0.45 (-0.23%)
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 Cap1.79B
Analysts80
Price Target247.35 (28.46%)
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)-5.23%
EPS NQ rev (3m)-4.49%
EPS NY rev (1m)33.72%
EPS NY rev (3m)33.72%
Revenue NQ rev (1m)-1.83%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.83 | ||
| Fwd PE | 20.08 | ||
| P/S | 6.58 | ||
| P/FCF | 21.58 | ||
| P/OCF | 21.45 | ||
| P/B | 1.05 | ||
| P/tB | 1.05 | ||
| EV/EBITDA | 21.2 |
EPS(TTM)33.03
EY17.15%
EPS(NY)9.59
Fwd EY4.98%
FCF(TTM)8.92
FCFY4.63%
OCF(TTM)8.98
OCFY4.66%
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
WACC8.61%
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 Year10.75%
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%