Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.70B
• Dividend Yield: 0.09%
• Average Volume (3M): 4.34K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.32
• Revenue Growth: 10.61%
• EPS Growth: 43.64%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 5.65
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 4,316
• 30 Day Avg. Volume: 4,337
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: 70 Outperform
• Price Target: C$201.00 ▲(10.38% Upside)

Mainstreet Equity shows strong financial performance with robust profitability and cash flow management. However, technical indicators suggest a bearish trend, and the stock appears undervalued based on its P/E ratio. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Steady revenue growth indicates a stable market position and the potential for continued expansion in the multi-family residential sector.

Profitability

High profitability reflects efficient cost management and operational effectiveness, supporting long-term financial health and shareholder value.

Operational Efficiency

Stable gross profit margins highlight the company's ability to maintain cost controls and optimize operations, which is crucial for sustaining profitability.

Negative Factors

Free Cash Flow Decline

The sharp decline in free cash flow growth raises concerns about the company's ability to generate cash, which could impact future investments and financial flexibility.

Debt Levels

Moderate leverage is typical for the industry but suggests a need for careful debt management to avoid financial strain and maintain balance sheet health.

Cash Flow to Net Income

A low operating cash flow to net income ratio may indicate potential issues in converting earnings into cash, which is vital for ongoing operations and growth.

Mainstreet Equity Business Overview & Revenue Model

Company Description

Mainstreet Equity Corp. (MEQ) is a Canadian real estate investment trust (REIT) that specializes in the acquisition, management, and development of multi-family residential properties. The company primarily operates in the Western Canadian provinces of Alberta, British Columbia, and Saskatchewan, focusing on providing quality rental housing to a diverse tenant base. MEQ's core services include property management, tenant relations, and property improvement initiatives aimed at enhancing the living experience for residents while optimizing the performance of its real estate portfolio.

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 is performing well across all financial verticals, with strong revenue growth, profitability, and cash flow management. The company has a balanced capital structure, though there is potential to optimize debt levels further.

Income Statement

Mainstreet Equity has demonstrated consistent revenue growth over the years, with a recent growth rate of 1.31%. The company maintains strong profitability, evidenced by a high net profit margin of 103.87% in the latest year. The EBIT and EBITDA margins are also robust, indicating efficient operational management. However, the net profit margin appears unusually high due to potential non-operational income, which should be investigated further.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.06, indicating a balanced approach to leveraging. The return on equity is strong at 15.93%, reflecting effective use of shareholder funds. The equity ratio of 44.16% suggests a solid capital structure, though there is room for improvement in reducing debt levels to enhance financial stability.

Cash Flow

Mainstreet Equity's cash flow is healthy, with a positive free cash flow growth rate of 15.2%. The operating cash flow to net income ratio is 0.30, suggesting that cash generation from operations is in line with reported earnings. The free cash flow to net income ratio of 0.30 indicates efficient cash management, though there is potential to increase operational cash flow relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	276.29M	276.29M	249.80M	210.03M	180.57M	159.93M
Gross Profit	183.38M	183.38M	160.44M	131.31M	109.67M	97.85M
EBITDA	164.52M	164.52M	141.83M	113.60M	94.36M	85.22M
Net Income	287.01M	287.01M	199.88M	109.41M	120.54M	225.53M
Balance Sheet
Total Assets	4.08B	4.08B	3.49B	3.16B	2.89B	2.67B
Cash, Cash Equivalents and Short-Term Investments	321.38M	321.38M	48.83M	81.76M	44.56M	19.22M
Total Debt	1.92B	1.92B	1.65B	1.57B	1.43B	1.36B
Total Liabilities	2.28B	2.28B	1.97B	1.85B	1.68B	1.58B
Stockholders Equity	1.80B	1.80B	1.52B	1.32B	1.21B	1.09B
Cash Flow
Free Cash Flow	85.32M	85.38M	92.14M	71.65M	52.37M	35.25M
Operating Cash Flow	85.65M	85.70M	92.44M	71.84M	52.94M	35.96M
Investing Cash Flow	-83.53M	-83.53M	-172.19M	-158.59M	-102.23M	-240.40M
Financing Cash Flow	264.42M	264.42M	47.80M	125.03M	74.89M	185.55M

Mainstreet Equity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 182.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 182.1 is below the 20-day moving average (MA) of 183.49, below the 50-day MA of 186.08, and below the 200-day MA of 189.30, indicating a bearish trend. The MACD of -0.89 indicates Negative momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 22.25 is Neutral, 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
IEI	74 Outperform	C$32.61M	6.70	4.45%	2.32%	2.03%	―
MEQ	70 Outperform	C$1.70B	5.91	17.29%	0.09%	10.61%	43.64%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AIF	64 Neutral	C$2.37B	-41.23	3.63%	1.09%	-27.10%	-2415.77%
SVI	43 Neutral	C$1.72B	-490.63	-2.63%	0.25%	9.98%	93.01%
BRE	43 Neutral	$124.24M	-11.51	―	10.33%	58.15%	-235.04%

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.