MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:MEQ • CA5609151009
176.26 CAD
-2.85 (-1.59%)
Last: Jan 29, 2026, 07:00 PM
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. While MEQ has a great profitability rating, 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
- In the past year MEQ was profitable.
- In the past year MEQ had a positive cash flow from operations.
- In the past 5 years MEQ has always been profitable.
- Each year in the past 5 years MEQ had a positive operating cash flow.
1.2 Ratios
- MEQ has a better Return On Assets (7.03%) than 96.88% of its industry peers.
- MEQ has a Return On Equity of 15.92%. This is amongst the best in the industry. MEQ outperforms 96.88% of its industry peers.
- MEQ has a Return On Invested Capital of 3.64%. This is comparable to the rest of the industry: MEQ outperforms 59.38% of its industry peers.
- MEQ had an Average Return On Invested Capital over the past 3 years of 3.47%. This is significantly below the industry average of 10.66%.
- The last Return On Invested Capital (3.64%) for MEQ is above the 3 year average (3.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.03% | ||
| ROE | 15.92% | ||
| ROIC | 3.64% |
ROA(3y)5.4%
ROA(5y)5.76%
ROE(3y)12.46%
ROE(5y)13.6%
ROIC(3y)3.47%
ROIC(5y)3.2%
1.3 Margins
- With an excellent Profit Margin value of 103.88%, 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 Profit Margin of MEQ has grown nicely.
- Looking at the Operating Margin, with a value of 59.32%, 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 Operating Margin of MEQ has grown nicely.
- Looking at the Gross Margin, with a value of 66.37%, MEQ belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
- In the last couple of years the Gross Margin of MEQ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.32% | ||
| PM (TTM) | 103.88% | ||
| GM | 66.37% |
OM growth 3Y4.53%
OM growth 5Y2.2%
PM growth 3Y15.9%
PM growth 5Y17.8%
GM growth 3Y3%
GM growth 5Y1.35%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MEQ is destroying value.
- MEQ has about the same amout of shares outstanding than it did 1 year ago.
- Compared to 5 years ago, MEQ has about the same amount of shares outstanding.
- The debt/assets ratio for MEQ has been reduced compared to a year ago.
2.2 Solvency
- MEQ has an Altman-Z score of 1.25. This is a bad value and indicates that MEQ is not financially healthy and even has some risk of bankruptcy.
- MEQ has a Altman-Z score of 1.25. This is comparable to the rest of the industry: MEQ outperforms 53.13% of its industry peers.
- The Debt to FCF ratio of MEQ is 22.75, which is on the high side as it means it would take MEQ, 22.75 years of fcf income to pay off all of its debts.
- MEQ's Debt to FCF ratio of 22.75 is fine compared to the rest of the industry. MEQ outperforms 62.50% of its industry peers.
- MEQ has a Debt/Equity ratio of 0.91. This is a neutral value indicating MEQ is somewhat dependend on debt financing.
- MEQ's Debt to Equity ratio of 0.91 is in line compared to the rest of the industry. MEQ outperforms 40.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | 22.75 | ||
| Altman-Z | 1.25 |
ROIC/WACC0.49
WACC7.4%
2.3 Liquidity
- A Current Ratio of 1.13 indicates that MEQ should not have too much problems paying its short term obligations.
- MEQ has a Current ratio of 1.13. This is comparable to the rest of the industry: MEQ outperforms 50.00% of its industry peers.
- A Quick Ratio of 1.13 indicates that MEQ should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.13, MEQ is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.13 | ||
| Quick Ratio | 1.13 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 43.59% over the past year.
- The Earnings Per Share has been growing by 33.33% 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 10.61%.
- The Revenue has been growing by 13.02% on average over the past years. This is quite good.
EPS 1Y (TTM)43.59%
EPS 3Y33.62%
EPS 5Y33.33%
EPS Q2Q%-18.31%
Revenue 1Y (TTM)10.61%
Revenue growth 3Y15.23%
Revenue growth 5Y13.02%
Sales Q2Q%5.34%
3.2 Future
- The Earnings Per Share is expected to decrease by -42.71% on average over the next years. This is quite bad
- The Revenue is expected to grow by 4.84% on average over the next years.
EPS Next Y-69.26%
EPS Next 2Y-42.71%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.12%
Revenue Next 2Y4.84%
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 5.72 indicates a rather cheap valuation of MEQ.
- Based on the Price/Earnings ratio, MEQ is valued cheaply inside the industry as 90.63% of the companies are valued more expensively.
- MEQ's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.30.
- MEQ is valuated rather expensively with a Price/Forward Earnings ratio of 18.61.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MEQ indicates a rather cheap valuation: MEQ is cheaper than 84.38% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of MEQ to the average of the S&P500 Index (25.57), we can say MEQ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.72 | ||
| Fwd PE | 18.61 |
4.2 Price Multiples
- MEQ's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MEQ is cheaper than 68.75% of the companies in the same industry.
- 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 | 19.46 | ||
| EV/EBITDA | 19.7 |
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 -42.71% in the coming years.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2Y-42.71%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a yearly dividend of 0.18%, MEQ is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 2.31, MEQ is paying slightly less dividend.
- With a Dividend Yield of 0.18, MEQ pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.18% |
5.2 History
- MEQ has paid a dividend for less than 5 years, so there is no long track record yet.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 0.48% of the earnings are spent on dividend by MEQ. This is a low number and sustainable payout ratio.
DP0.48%
EPS Next 2Y-42.71%
EPS Next 3YN/A
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.
Can you provide the valuation status for MAINSTREET EQUITY CORP?
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.
Can you provide the financial health for MEQ stock?
The financial health rating of MAINSTREET EQUITY CORP (MEQ.CA) is 4 / 10.
How sustainable is the dividend of MAINSTREET EQUITY CORP (MEQ.CA) stock?
The dividend rating of MAINSTREET EQUITY CORP (MEQ.CA) is 2 / 10 and the dividend payout ratio is 0.48%.