MAINSTREET EQUITY CORP (MEQ.CA) Stock Fundamental Analysis
TSX:MEQ - Toronto Stock Exchange - CA5609151009 - Common Stock - Currency: CAD
Taking everything into account, MEQ scores 5 out of 10 in our fundamental rating. MEQ was compared to 28 industry peers in the Real Estate Management & Development industry. MEQ scores excellent on profitability, but there are 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.
MEQ had a positive operating cash flow in the past year.
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 better Return On Assets (5.16%) than 89.29% of its industry peers.
MEQ has a Return On Equity of 11.91%. This is amongst the best in the industry. MEQ outperforms 85.71% of its industry peers.
MEQ has a Return On Invested Capital of 3.64%. This is in the better half of the industry: MEQ outperforms 67.86% of its industry peers.
MEQ had an Average Return On Invested Capital over the past 3 years of 3.11%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (3.11%) for MEQ is below the current ROIC(3.64%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 72.40%, MEQ belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MEQ has grown nicely.
MEQ's Operating Margin of 57.30% is amongst the best of the industry. MEQ outperforms 92.86% of its industry peers.
MEQ's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 64.51%, MEQ is in the better half of the industry, outperforming 67.86% 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 | 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
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.
MEQ has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.26, we must say that MEQ is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of MEQ (1.26) is better than 60.71% 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 has a better Debt to FCF ratio (18.43) than 60.71% of its industry peers.
MEQ has a Debt/Equity ratio of 0.93. This is a neutral value indicating MEQ is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.93, MEQ perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.93 | ||
| Debt/FCF | 18.43 | ||
| Altman-Z | 1.26 |
ROIC/WACC0.53
WACC6.86%
2.3 Liquidity
MEQ has a Current 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 Current ratio of 0.51. This is in the lower half of the industry: MEQ underperforms 67.86% of its industry peers.
A Quick Ratio of 0.51 indicates that MEQ may have some problems paying its short term obligations.
MEQ's Quick ratio of 0.51 is on the low side compared to the rest of the industry. MEQ is outperformed by 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.51 | ||
| Quick Ratio | 0.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.04% over the past year.
The Earnings Per Share has been growing by 27.81% on average over the past years. This is a very strong growth
Looking at the last year, MEQ shows a quite strong growth in Revenue. The Revenue has grown by 18.02% in the last year.
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)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
MEQ is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -32.61% yearly.
Based on estimates for the next years, MEQ will show a quite strong growth in Revenue. The Revenue will grow by 8.50% on average per year.
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.
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
A Price/Earnings ratio of 9.24 indicates a reasonable valuation of MEQ.
78.57% of the companies in the same industry are more expensive than MEQ, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.98, MEQ is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 19.09, the valuation of MEQ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MEQ indicates a somewhat cheap valuation: MEQ is cheaper than 75.00% of the companies listed in the same industry.
MEQ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 19.09 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MEQ indicates a somewhat cheap valuation: MEQ is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.48 | ||
| EV/EBITDA | 22.5 |
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 -32.61% in the coming years.
PEG (NY)N/A
PEG (5Y)0.33
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 3.42.
With a Dividend Yield of 0.08, MEQ pays less dividend than the S&P500 average, which is at 2.46.
| 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
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 (4/29/2025, 7:00:00 PM)
186
-2 (-1.06%)
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 Cap1.73B
Analysts76.67
Price Target239.7 (28.87%)
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)0%
PT rev (3m)3.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.09%
EPS NY rev (1m)0%
EPS NY rev (3m)26.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 19.09 | ||
| P/S | 6.69 | ||
| P/FCF | 18.48 | ||
| P/OCF | 18.42 | ||
| P/B | 1.1 | ||
| P/tB | 1.1 | ||
| EV/EBITDA | 22.5 |
EPS(TTM)20.12
EY10.82%
EPS(NY)9.74
Fwd EY5.24%
FCF(TTM)10.07
FCFY5.41%
OCF(TTM)10.1
OCFY5.43%
SpS27.8
BVpS168.92
TBVpS168.86
PEG (NY)N/A
PEG (5Y)0.33
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 | 1.26 |
F-Score6
WACC6.86%
ROIC/WACC0.53
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 Year27%
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%