Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.73B
• Dividend Yield: 0.09%
• Average Volume (3M): 4.34K
• Price to Earnings (P/E): 5.6
• Beta (1Y): 0.16
• Revenue Growth: 14.29%
• EPS Growth: 144.57%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 3.41
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 4,316
• 30 Day Avg. Volume: 4,337
• PEG Ratio: 0.11
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 7.13
• P/FCF Ratio: 19.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: C$212.00 ▲(13.64% Upside)

Mainstreet Equity's strong financial performance, characterized by high profitability and efficient operations, is the most significant factor contributing to the score. The stock's valuation is attractive, with a low P/E ratio and high dividend yield, enhancing its appeal. Technical analysis indicates a neutral to slightly bearish trend, which slightly offsets the positive financial and valuation aspects.

Mainstreet Equity Business Overview & Revenue Model

Company Description

Mainstreet 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 Money

Mainstreet Equity generates revenue primarily through rental income from its extensive portfolio of multi-family residential properties. The company earns money by leasing apartments to tenants, which provides a steady stream of cash flow. Additionally, MEQ engages in value-add strategies such as property renovations and upgrades, which can lead to increased rental rates and improved occupancy levels. The company may also benefit from strategic partnerships with local contractors and property management firms that enhance operational efficiency and tenant satisfaction. Furthermore, MEQ may realize additional income through ancillary services and amenities offered to residents, contributing to its overall revenue model.

Mainstreet Equity Financial Statement Overview

Summary

Mainstreet Equity demonstrates strong profitability with high margins and stable revenue growth. The balance sheet shows moderate leverage and effective equity utilization, though debt levels could be optimized. Cash flow performance is mixed, with a significant drop in free cash flow growth, but overall cash conversion remains healthy.

Income Statement

Mainstreet Equity demonstrates strong profitability with a high net profit margin of 92.24% in TTM, indicating efficient cost management. The gross profit margin remains stable around 64.67%, showcasing consistent operational efficiency. Revenue growth is modest at 2.38% TTM, suggesting steady expansion. The EBIT and EBITDA margins are exceptionally high, reflecting robust earnings performance.

Balance Sheet

The company's debt-to-equity ratio of 1.09 indicates moderate leverage, which is typical for the real estate industry. Return on equity at 15.93% TTM shows effective use of equity to generate profits. The equity ratio of 44.20% suggests a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Free cash flow growth has declined significantly by 99.9% TTM, raising concerns about cash generation. However, the operating cash flow to net income ratio of 0.36 indicates that cash flows are still supporting earnings. The free cash flow to net income ratio remains strong at 0.99, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.72M	249.80M	210.03M	180.57M	159.93M	149.77M
Gross Profit	179.12M	160.44M	131.31M	109.67M	97.85M	93.03M
EBITDA	160.25M	141.83M	113.60M	94.36M	85.22M	80.19M
Net Income	307.79M	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet
Total Assets	3.87B	3.49B	3.16B	2.89B	2.67B	2.24B
Cash, Cash Equivalents and Short-Term Investments	215.98M	48.83M	81.76M	44.56M	19.22M	38.47M
Total Debt	1.82B	1.65B	1.57B	1.43B	1.36B	1.18B
Total Liabilities	2.16B	1.97B	1.85B	1.68B	1.58B	1.37B
Stockholders Equity	1.71B	1.52B	1.32B	1.21B	1.09B	867.09M
Cash Flow
Free Cash Flow	84.41M	92.14M	71.65M	52.37M	35.25M	34.67M
Operating Cash Flow	84.73M	92.44M	71.84M	52.94M	35.96M	35.36M
Investing Cash Flow	-71.71M	-172.19M	-158.59M	-102.23M	-240.40M	-106.95M
Financing Cash Flow	157.60M	47.80M	125.03M	74.89M	185.55M	109.90M

Mainstreet Equity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MEQ, the sentiment is Negative. The current price of 186.55 is below the 20-day moving average (MA) of 189.56, below the 50-day MA of 190.87, and below the 200-day MA of 192.41, indicating a bearish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 3.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MEQ.

Mainstreet Equity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	74 Outperform	C$1.73B	5.63	19.75%	0.09%	14.29%	144.57%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FSV	65 Neutral	$10.00B	52.31	11.14%	0.69%	14.10%	28.82%
CIGI	63 Neutral	$11.11B	71.78	8.68%	0.19%	22.85%	-25.32%
AIF	60 Neutral	C$2.45B	-41.77	3.20%	1.07%	-33.01%	-2201.72%
SVI	47 Neutral	C$1.76B	-501.04	-2.63%	0.24%	9.98%	93.01%

Mainstreet Equity Corporate Events

Mainstreet Equity Corp. Declares Quarterly Dividend

Mainstreet Equity Corp. has announced a quarterly cash dividend of $0.04 per common share for the period ending September 30, 2025, payable on October 31, 2025, to shareholders of record as of October 17, 2025. This announcement reflects Mainstreet’s ongoing commitment to providing value to its shareholders while maintaining its strategic focus on acquiring and stabilizing undervalued properties in the Canadian real estate market.

The most recent analyst rating on (TSE:MEQ) stock is a Buy with a C$219.00 price target. To see the full list of analyst forecasts on Mainstreet Equity stock, see the TSE:MEQ Stock Forecast page.

Mainstreet Equity Corp. Declares Quarterly Dividend for Q3 2025

Mainstreet Equity Corp. announced a quarterly cash dividend of $0.04 per common share for the period ending September 30, 2025, payable on October 31, 2025. This announcement reflects Mainstreet’s commitment to providing returns to its shareholders while maintaining its strategic focus on acquiring and stabilizing undervalued multi-family rental properties in western Canada. The dividend is designated as an eligible dividend for Canadian tax purposes, indicating a stable financial outlook and reinforcing Mainstreet’s market position.

The most recent analyst rating on (TSE:MEQ) stock is a Buy with a C$219.00 price target. To see the full list of analyst forecasts on Mainstreet Equity stock, see the TSE:MEQ Stock Forecast page.

Mainstreet Equity Achieves 15th Consecutive Quarter of Growth

Mainstreet Equity Corp. has reported its 15th consecutive quarter of double-digit growth, showcasing the resilience of its business model amid global economic uncertainties. The company saw a 10% increase in funds from operations, a 16% rise in net operating income, and a 10% growth in rental revenues. With an operating margin increase to 67.5% and a liquidity position of $815 million, Mainstreet is poised for further growth by capitalizing on the current economic environment to accelerate acquisitions and continue its strategic expansion.