MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MEQ - CA5609151009 - Common Stock
180.37 CAD
-1.37 (-0.75%)
We assign a fundamental rating of 6 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 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.
MEQ had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.95%, MEQ belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
MEQ's Return On Equity of 17.98% is amongst the best of the industry. MEQ outperforms 96.88% of its industry peers.
With a Return On Invested Capital value of 3.51%, MEQ perfoms like the industry average, outperforming 56.25% 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 significantly below the industry average of 10.35%.
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
MEQ has a better Profit Margin (112.86%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of MEQ has grown nicely.
MEQ has a better Operating Margin (58.54%) than 96.88% of its industry peers.
MEQ's Operating Margin has been stable in the last couple of years.
MEQ's Gross Margin of 65.68% is fine compared to the rest of the industry. MEQ outperforms 68.75% of its industry peers.
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.
MEQ has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MEQ has been reduced compared to 5 years ago.
Compared to 1 year ago, MEQ has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.31, we must say that MEQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MEQ (1.31) is comparable to the rest of the 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 fine compared to the rest of the industry. MEQ outperforms 65.63% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that MEQ is somewhat dependend on debt financing.
MEQ has a worse Debt to Equity ratio (0.98) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 21.84 | ||
| Altman-Z | 1.31 |
ROIC/WACC0.48
WACC7.29%
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.
MEQ's Current ratio of 1.57 is in line compared to the rest of the industry. MEQ outperforms 56.25% 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.
The Quick ratio of MEQ (1.55) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 27.81% on average over the past years. This is a very strong growth
MEQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.29%.
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
Based on estimates for the next years, MEQ will show a very negative growth in Earnings Per Share. The EPS will decrease by -33.14% on average per year.
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-29.3%
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
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
A Price/Earnings ratio of 5.46 indicates a rather cheap valuation of MEQ.
Based on the Price/Earnings ratio, MEQ is valued cheaper than 93.75% of the companies in the same industry.
MEQ is valuated cheaply when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
MEQ is valuated rather expensively with a Price/Forward Earnings ratio of 18.81.
Based on the Price/Forward Earnings ratio, MEQ is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, MEQ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 18.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MEQ is valued a bit cheaper than the industry average as 68.75% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MEQ is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.17 | ||
| EV/EBITDA | 20.45 |
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)0.2
EPS Next 2Y-33.14%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MEQ has a yearly dividend return of 0.09%, which is pretty low.
MEQ's Dividend Yield is slightly below the industry average, which is at 2.53.
With a Dividend Yield of 0.09, MEQ pays less dividend than the S&P500 average, which is at 1.87.
| 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 0.41% of its income as dividend. This is a sustainable payout ratio.
DP0.41%
EPS Next 2Y-33.14%
EPS Next 3YN/A
TSX:MEQ (12/24/2025, 7:00:00 PM)
180.37
-1.37 (-0.75%)
Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryReal Estate Management & Development
Earnings (Last)
Earnings (Next)
Inst Owners20.88%
Inst Owner ChangeN/A
Ins Owners49%
Ins Owner ChangeN/A
Market Cap1.68B
Revenue(TTM)272.72M
Net Income(TTM)307.79M
Analysts80
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.09% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP0.41%
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)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)8.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.46 | ||
| Fwd PE | 18.81 | ||
| P/S | 6.15 | ||
| P/FCF | 20.17 | ||
| P/OCF | 20.05 | ||
| P/B | 0.98 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 20.45 |
EPS(TTM)33.03
EY18.31%
EPS(NY)9.59
Fwd EY5.32%
FCF(TTM)8.94
FCFY4.96%
OCF(TTM)9
OCFY4.99%
SpS29.32
BVpS184.04
TBVpS183.99
PEG (NY)N/A
PEG (5Y)0.2
Graham Number369.83
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%
ROICexgc growth 3Y9.44%
ROICexgc 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 | 1.31 |
F-Score7
WACC7.29%
ROIC/WACC0.48
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-29.3%
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 Year71.85%
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%
MAINSTREET EQUITY CORP / MEQ.CA FAQ
What is the ChartMill fundamental rating of MAINSTREET EQUITY CORP (MEQ.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to MEQ.CA.
What is the valuation status of MAINSTREET EQUITY CORP (MEQ.CA) stock?
ChartMill assigns a valuation rating of 6 / 10 to MAINSTREET EQUITY CORP (MEQ.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MAINSTREET EQUITY CORP?
MAINSTREET EQUITY CORP (MEQ.CA) has a profitability rating of 8 / 10.
What is the expected EPS growth for MAINSTREET EQUITY CORP (MEQ.CA) stock?
The Earnings per Share (EPS) of MAINSTREET EQUITY CORP (MEQ.CA) is expected to decline by -29.3% in the next year.
Can you provide the dividend sustainability for MEQ stock?
The dividend rating of MAINSTREET EQUITY CORP (MEQ.CA) is 1 / 10 and the dividend payout ratio is 0.41%.