MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
TSX:MEQ - Toronto Stock Exchange - CA5609151009 - Common Stock - Currency: CAD
Overall MEQ gets a fundamental rating of 5 out of 10. We evaluated MEQ against 26 industry peers in the Real Estate Management & Development industry. While MEQ has a great profitability rating, there are quite some 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 92.31% of its industry peers.
MEQ's Return On Equity of 14.74% is amongst the best of the industry. MEQ outperforms 88.46% of its industry peers.
MEQ has a Return On Invested Capital (3.50%) which 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 significantly below the industry average of 8.58%.
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
With an excellent Profit Margin value of 92.13%, MEQ belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MEQ's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 57.61%, 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 Operating Margin of MEQ has remained more or less at the same level.
MEQ's Gross Margin of 64.77% is fine compared to the rest of the industry. MEQ outperforms 73.08% 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.
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 1.30. 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 1.30, MEQ is in line with its industry, outperforming 57.69% of the companies in the same industry.
MEQ has a debt to FCF ratio of 21.50. This is a negative value and a sign of low solvency as MEQ would need 21.50 years to pay back of all of its debts.
With a Debt to FCF ratio value of 21.50, MEQ perfoms like the industry average, outperforming 57.69% 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.
With a Debt to Equity ratio value of 0.96, MEQ perfoms like the industry average, outperforming 57.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 21.5 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.5
WACC7%
2.3 Liquidity
MEQ has a Current Ratio of 1.02. 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 Current ratio of 1.02 is on the low side compared to the rest of the industry. MEQ is outperformed by 61.54% of its industry peers.
A Quick Ratio of 1.01 indicates that MEQ should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.01, MEQ is doing worse than 61.54% of the companies in the same 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.
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 16.22% in the past year. This is quite good.
MEQ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.67% yearly.
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
Based on estimates for the next years, MEQ will show a very negative growth in Earnings Per Share. The EPS will decrease by -32.61% on average per year.
Based on estimates for the next years, MEQ will show a quite strong growth in Revenue. The Revenue will grow by 9.24% on average per year.
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
The Price/Earnings ratio is 7.19, which indicates a rather cheap valuation of MEQ.
Compared to the rest of the industry, the Price/Earnings ratio of MEQ indicates a rather cheap valuation: MEQ is cheaper than 84.62% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. MEQ is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 19.44, which indicates a rather expensive current valuation of MEQ.
76.92% of the companies in the same industry are more expensive than MEQ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MEQ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 19.44 |
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 ratio is a bit cheaper when compared to the industry. MEQ is cheaper than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21 | ||
| EV/EBITDA | 21.78 |
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)0.26
EPS Next 2Y-32.61%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.09%, MEQ is not a good candidate for dividend investing.
MEQ's Dividend Yield is slightly below the industry average, which is at 3.04.
Compared to an average S&P500 Dividend Yield of 2.37, MEQ's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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 (7/11/2025, 7:00:00 PM)
189.33
+0.66 (+0.35%)
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 Cap1.76B
Analysts76.67
Price Target242.25 (27.95%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
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)1.06%
PT rev (3m)1.06%
EPS NQ rev (1m)4.23%
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)1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.19 | ||
| Fwd PE | 19.44 | ||
| P/S | 6.62 | ||
| P/FCF | 21 | ||
| P/OCF | 20.88 | ||
| P/B | 1.06 | ||
| P/tB | 1.06 | ||
| EV/EBITDA | 21.78 |
EPS(TTM)26.33
EY13.91%
EPS(NY)9.74
Fwd EY5.15%
FCF(TTM)9.02
FCFY4.76%
OCF(TTM)9.07
OCFY4.79%
SpS28.58
BVpS178.69
TBVpS178.64
PEG (NY)N/A
PEG (5Y)0.26
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 | 1.3 |
F-Score7
WACC7%
ROIC/WACC0.5
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%