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Mainstreet Equity (TSE:MEQ)
:MEQ
Canadian Market

Mainstreet Equity (MEQ) AI Stock Analysis

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Mainstreet Equity

(TSX:MEQ)

66Neutral
Mainstreet Equity's stock score reflects its robust financial performance and attractive valuation, tempered by current technical weaknesses. The company's long-term growth strategy and consistent performance underpin a positive outlook, despite short-term market challenges.

Mainstreet Equity (MEQ) vs. S&P 500 (SPY)

Mainstreet Equity Business Overview & Revenue Model

Company DescriptionMainstreet Equity Corp. engages in the acquisition, divestiture, value-enhancement, and management of multi-family residential properties in Western Canada. The company owns a portfolio of multi-family residential properties in Vancouver and the Lower Mainland, Calgary and Southern Alberta, Edmonton, Saskatoon, and Regina. As of September 30, 2021, it had a total portfolio of 15,071 revenue producing units consisting of townhouses, garden-style apartments, and concrete mid-rise and high-rise apartments, condo suites and 2 freestanding commercial houses. The company was founded in 1997 and is headquartered in Calgary, Canada.
How the Company Makes MoneyMainstreet Equity Corp. makes money primarily through rental income generated from its portfolio of residential properties. By acquiring undervalued properties and investing in significant renovations, the company enhances the quality and appeal of these units, allowing them to command higher rental rates. Additionally, Mainstreet benefits from increased property values over time, which can be leveraged for refinancing or strategic sales. The company's revenue model is further supported by its focus on cost-efficient management practices, reducing operating expenses, and maximizing net operating income. Key factors contributing to its earnings include strategic acquisitions, property upgrades, and maintaining high occupancy rates within its rental properties.

Mainstreet Equity Financial Statement Overview

Summary
Mainstreet Equity demonstrates solid financial health with strong profitability and efficient cash management. While revenue and profit margins are commendable, attention to stabilizing net income will enhance future financial stability. The balance sheet reflects prudent financial leverage, supporting growth opportunities in the real estate sector.
Income Statement
82
Very Positive
Mainstreet Equity shows a strong financial performance with substantial revenue growth from previous years. The gross profit margin is robust at 64.35% TTM. The net profit margin is also impressive at 72.44% TTM, indicating efficient cost management. However, the decline in net income from the previous annual report suggests some volatility, which needs attention.
Balance Sheet
75
Positive
The company's balance sheet reveals a moderate debt-to-equity ratio of 1.10, which is reasonable for the real estate industry. Return on equity is high at 11.91% TTM, reflecting strong profitability. The equity ratio stands at 43.32% TTM, indicating a healthy capital structure but with room for leverage improvement.
Cash Flow
78
Positive
The cash flow analysis shows a positive trajectory with a significant increase in free cash flow. The operating cash flow to net income ratio is 0.50 TTM, suggesting efficient cash conversion. However, the free cash flow to net income ratio is slightly lower at 0.50 TTM, which might indicate potential reinvestment needs.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
258.92M249.80M210.03M180.57M159.93M149.77M
Gross Profit
166.63M160.44M131.31M109.67M97.85M93.03M
EBIT
158.25M160.44M113.08M109.67M97.85M93.03M
EBITDA
236.07M288.41M179.82M94.73M85.61M80.56M
Net Income Common Stockholders
187.56M199.88M109.41M120.54M225.53M68.55M
Balance SheetCash, Cash Equivalents and Short-Term Investments
170.06M48.83M81.76M44.56M19.22M38.47M
Total Assets
3.42B3.49B3.16B2.89B2.67B2.24B
Total Debt
1.70B1.65B1.57B1.43B1.36B1.18B
Net Debt
1.69B1.60B1.48B1.39B1.34B1.14B
Total Liabilities
2.00B1.97B1.85B1.68B1.58B1.37B
Stockholders Equity
1.42B1.52B1.32B1.21B1.09B867.09M
Cash FlowFree Cash Flow
94.14M91.14M70.17M51.91M34.73M34.14M
Operating Cash Flow
94.43M91.46M70.76M52.68M35.61M35.45M
Investing Cash Flow
-164.65M-172.19M-158.59M-102.23M-240.40M-106.95M
Financing Cash Flow
53.95M47.80M125.03M74.89M185.55M109.90M

Mainstreet Equity Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price189.40
Price Trends
50DMA
198.31
Negative
100DMA
200.36
Negative
200DMA
194.70
Negative
Market Momentum
MACD
-3.17
Negative
RSI
48.79
Neutral
STOCH
79.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MEQ, the sentiment is Neutral. The current price of 189.4 is below the 20-day moving average (MA) of 189.51, below the 50-day MA of 198.31, and below the 200-day MA of 194.70, indicating a neutral trend. The MACD of -3.17 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MEQ.

Mainstreet Equity Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
C$923.94M9.235.29%4.30%3.79%-40.78%
72
Outperform
C$7.01B24.843.20%3.41%4.45%
72
Outperform
C$2.10B3.2223.97%4.05%5.04%151.14%
70
Outperform
C$1.67B-6.27%3.37%3.85%-266.02%
TSMEQ
66
Neutral
C$1.76B9.4112.66%0.07%18.02%15.10%
61
Neutral
$4.70B17.65-3.00%11.43%5.99%-19.07%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:MEQ
Mainstreet Equity
190.95
5.51
2.97%
TSE:CAR.UN
Canadian Apartment
42.74
-0.85
-1.95%
TSE:IIP.UN
InterRent REIT Un
11.32
-1.35
-10.66%
TSE:KMP.UN
Killam Apartment REIT Un
17.49
0.33
1.92%
TSE:MRG.UN
Morguard NA REIT UN
17.36
2.48
16.67%
BOWFF
Boardwalk REIT
46.58
-8.10
-14.81%

Mainstreet Equity Corporate Events

Business Operations and StrategyFinancial Disclosures
Mainstreet Equity Achieves 13th Consecutive Quarter of Double-Digit Growth
Positive
Feb 4, 2025

Mainstreet Equity Corp. reported its 13th consecutive quarter of double-digit growth in Q1 2025, with a notable increase in key metrics such as FFO, NOI, and rental revenues, despite the typically slow winter rental season. The company’s strong performance reflects its strategic focus on countercyclical growth and commitment to affordable housing, with plans for portfolio expansion amid current economic conditions.

Mainstreet Equity Corp. Boosts Quarterly Dividend by 45%
Jan 15, 2025

Mainstreet Equity Corp. announced a substantial 45% increase in its quarterly dividend to $0.04 per share for the period ending December 31, 2024, payable at the end of January 2025. This increase reflects the company’s strong financial position and commitment to rewarding shareholders, aligning with its strategic focus on leveraging robust liquidity and stabilizing assets to maximize net operating income.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.