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 30 industry peers in the Real Estate Management & Development industry. MEQ has an excellent profitability rating, but there are concerns on its financial health. MEQ is not valued too expensively and it also shows a decent 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.
Each year in the past 5 years MEQ has been profitable.
Each year in the past 5 years MEQ had a positive operating cash flow.
1.2 Ratios
MEQ has a Return On Assets of 5.16%. This is amongst the best in the industry. MEQ outperforms 93.10% of its industry peers.
Looking at the Return On Equity, with a value of 11.91%, MEQ belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
The Return On Invested Capital of MEQ (3.64%) 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 below the industry average of 7.11%.
The last Return On Invested Capital (3.64%) for MEQ is above the 3 year average (3.11%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 11.91% | ||
| ROIC | 3.64% |
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 (72.40%) than 100.00% of its industry peers.
In the last couple of years the Profit Margin of MEQ has grown nicely.
MEQ has a Operating Margin of 57.30%. This is amongst the best in the industry. MEQ outperforms 93.10% of its industry peers.
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 64.51%, MEQ is doing good in the industry, outperforming 65.52% 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 | 57.3% | ||
| PM (TTM) | 72.4% | ||
| GM | 64.51% |
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.
MEQ has more shares outstanding than it did 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 1.30. 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 1.30. This is comparable to the rest of the industry: MEQ outperforms 55.17% of its industry peers.
The Debt to FCF ratio of MEQ is 18.43, which is on the high side as it means it would take MEQ, 18.43 years of fcf income to pay off all of its debts.
MEQ's Debt to FCF ratio of 18.43 is fine compared to the rest of the industry. MEQ outperforms 62.07% of its industry peers.
A Debt/Equity ratio of 0.93 indicates that MEQ is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.93, MEQ is in the better half of the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 18.43 | ||
| Altman-Z | 1.3 |
ROIC/WACC0.55
WACC6.67%
2.3 Liquidity
A Current Ratio of 0.51 indicates that MEQ may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.51, MEQ is doing worse than 68.97% of the companies in the same industry.
MEQ has a Quick Ratio of 0.51. This is a bad value and indicates that MEQ is not financially healthy enough and could expect problems in meeting its short term obligations.
MEQ has a Quick ratio of 0.51. This is in the lower half of the industry: MEQ underperforms 68.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
MEQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.04%, which is quite good.
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.
MEQ shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.02%.
The Revenue has been growing by 12.67% on average over the past years. This is quite good.
EPS 1Y (TTM)15.04%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%-18.07%
Revenue 1Y (TTM)18.02%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%15.87%
3.2 Future
The Earnings Per Share is expected to decrease by -32.61% on average over the next years. This is quite bad
The Revenue is expected to grow by 8.50% on average over the next years. This is quite good.
EPS Next Y-51.48%
EPS Next 2Y-32.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.71%
Revenue Next 2Y8.5%
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 9.98 indicates a reasonable valuation of MEQ.
MEQ's Price/Earnings ratio is rather cheap when compared to the industry. MEQ is cheaper than 89.66% of the companies in the same industry.
MEQ is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
MEQ is valuated rather expensively with a Price/Forward Earnings ratio of 20.61.
MEQ's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MEQ is cheaper than 72.41% of the companies in the same industry.
MEQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 20.61 |
4.2 Price Multiples
MEQ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MEQ is valued a bit cheaper than 65.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.95 | ||
| EV/EBITDA | 23.3 |
4.3 Compensation for Growth
MEQ has an outstanding profitability rating, which may justify a higher PE ratio.
MEQ's earnings are expected to decrease with -32.61% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.36
EPS Next 2Y-32.61%
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.
MEQ's Dividend Yield is slightly below the industry average, which is at 3.36.
Compared to an average S&P500 Dividend Yield of 2.27, 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
0.55% of the earnings are spent on dividend by MEQ. This is a low number and sustainable payout ratio.
DP0.55%
EPS Next 2Y-32.61%
EPS Next 3YN/A
TSX:MEQ (2/21/2025, 7:00:00 PM)
200.78
-2.22 (-1.09%)
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 Cap1.87B
Analysts76.67
Price Target239.7 (19.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.08% |
Yearly Dividend0.08
Dividend Growth(5Y)N/A
DP0.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)364.16%
Min EPS beat(2)225.36%
Max EPS beat(2)502.97%
EPS beat(4)3
Avg EPS beat(4)175.02%
Min EPS beat(4)-192.99%
Max EPS beat(4)502.97%
EPS beat(8)7
Avg EPS beat(8)192.59%
EPS beat(12)11
Avg EPS beat(12)192.32%
EPS beat(16)15
Avg EPS beat(16)163.52%
Revenue beat(2)1
Avg Revenue beat(2)-2.01%
Min Revenue beat(2)-4.4%
Max Revenue beat(2)0.38%
Revenue beat(4)3
Avg Revenue beat(4)0.02%
Min Revenue beat(4)-4.4%
Max Revenue beat(4)3.66%
Revenue beat(8)7
Avg Revenue beat(8)0.97%
Revenue beat(12)7
Avg Revenue beat(12)0.37%
Revenue beat(16)9
Avg Revenue beat(16)0.02%
PT rev (1m)3.98%
PT rev (3m)8.05%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-0.55%
EPS NY rev (1m)26.06%
EPS NY rev (3m)26.06%
Revenue NQ rev (1m)0.94%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)-0.61%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 20.61 | ||
| P/S | 7.22 | ||
| P/FCF | 19.95 | ||
| P/OCF | 19.88 | ||
| P/B | 1.19 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 23.3 |
EPS(TTM)20.12
EY10.02%
EPS(NY)9.74
Fwd EY4.85%
FCF(TTM)10.07
FCFY5.01%
OCF(TTM)10.1
OCFY5.03%
SpS27.8
BVpS168.92
TBVpS168.86
PEG (NY)N/A
PEG (5Y)0.36
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 11.91% | ||
| ROCE | 4.46% | ||
| ROIC | 3.64% | ||
| ROICexc | 3.78% | ||
| ROICexgc | 3.78% | ||
| OM | 57.3% | ||
| PM (TTM) | 72.4% | ||
| GM | 64.51% | ||
| FCFM | 36.21% |
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-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 18.43 | ||
| Debt/EBITDA | 9.77 | ||
| Cap/Depr | 44.11% | ||
| Cap/Sales | 0.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.11% | ||
| Profit Quality | 50.02% | ||
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 | ||
| Altman-Z | 1.3 |
F-Score6
WACC6.67%
ROIC/WACC0.55
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)15.04%
EPS 3Y53.85%
EPS 5Y27.81%
EPS Q2Q%-18.07%
EPS Next Y-51.48%
EPS Next 2Y-32.61%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)18.02%
Revenue growth 3Y16.03%
Revenue growth 5Y12.67%
Sales Q2Q%15.87%
Revenue Next Year9.71%
Revenue Next 2Y8.5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y24.66%
EBIT growth 3Y18.61%
EBIT growth 5Y13.94%
EBIT Next Year10.52%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y64.57%
FCF growth 3Y93.64%
FCF growth 5Y19.24%
OCF growth 1Y62.5%
OCF growth 3Y36.95%
OCF growth 5Y17.71%