Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.82B
• Dividend Yield: 0.08%
• Average Volume (3M): 3.50K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.21
• Revenue Growth: 16.22%
• EPS Growth: 39.56%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 2.09
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 3,803
• 30 Day Avg. Volume: 3,504
• PEG Ratio: N/A
• 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: C$225.00
• Price Target Upside: 15.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 80 Outperform
• Price Target: C$217.00 ▲(11.30% Upside)

Mainstreet Equity's strong financial performance and strategic growth initiatives are the primary drivers of its high stock score. The company's attractive valuation and positive corporate events further enhance its investment appeal. Technical indicators suggest stable momentum, supporting the overall positive outlook.

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 makes money primarily through rental income generated from its portfolio of residential properties. The company acquires undervalued or underperforming properties, renovates them to improve their market appeal, and then leases them out at competitive rental rates. This business model allows Mainstreet to increase occupancy rates and rental income over time. Additionally, the company benefits from property appreciation, which enhances its asset value and can provide capital gains upon sale. Mainstreet's focus on cost-effective renovations and efficient property management also helps improve profitability. Strategic partnerships with financial institutions enable Mainstreet to access capital for acquisitions and redevelopment projects, further supporting growth in revenue.

Mainstreet Equity Financial Statement Overview

Summary

Mainstreet Equity demonstrates robust financial health with strong income growth and profitability. The company has a solid balance sheet and effective cash flow generation. However, moderate debt levels and a declining EBIT margin warrant some caution.

Income Statement

Mainstreet Equity displays strong financial performance with a consistent upward trajectory in revenue and profitability. The TTM Gross Profit Margin stands at a robust 64.65%, and the Net Profit Margin is an impressive 92.20%, reflecting high efficiency and cost management. The revenue growth rate of 6.52% from the previous annual report is healthy, showing steady growth. However, a declining EBIT Margin from 2024 to TTM indicates some pressure on operating efficiency.

Balance Sheet

The balance sheet reveals solid financial stability with a Debt-to-Equity Ratio of 1.09, indicating balanced leverage. The Return on Equity is an excellent 14.74%, suggesting effective use of equity. However, an Equity Ratio of 43.66% suggests moderate reliance on debt financing, which could pose risks if interest rates rise.

Cash Flow

The company's cash flow position is strong, with a Free Cash Flow to Net Income Ratio of 0.34, indicating efficient cash generation relative to net income. The Operating Cash Flow to Net Income Ratio of 0.34 further underscores strong cash conversion. Although there was a slight decline in Operating Cash Flow, the Free Cash Flow Growth Rate of -7.77% reflects a need for monitoring future cash flow sustainability.

Breakdown	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	249.80M	210.03M	180.57M	159.93M	149.77M
Gross Profit	160.44M	131.31M	109.67M	97.85M	93.03M
EBITDA	288.41M	179.82M	94.73M	85.61M	80.56M
Net Income	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet
Total Assets	3.49B	3.16B	2.89B	2.67B	2.24B
Cash, Cash Equivalents and Short-Term Investments	48.83M	81.76M	44.56M	19.22M	38.47M
Total Debt	1.65B	1.57B	1.43B	1.36B	1.18B
Total Liabilities	1.97B	1.85B	1.68B	1.58B	1.37B
Stockholders Equity	1.52B	1.32B	1.21B	1.09B	867.09M
Cash Flow
Free Cash Flow	91.14M	70.17M	51.91M	34.73M	34.14M
Operating Cash Flow	91.46M	70.76M	52.68M	35.61M	35.45M
Investing Cash Flow	-172.19M	-158.59M	-102.23M	-240.40M	-106.95M
Financing Cash Flow	47.80M	125.03M	74.89M	185.55M	109.90M

Mainstreet Equity Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 194.96
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 194.96 is above the 20-day moving average (MA) of 188.01, above the 50-day MA of 188.69, and below the 200-day MA of 195.67, indicating a neutral trend. The MACD of 0.54 indicates Negative momentum. The RSI at 60.67 is Neutral, neither overbought nor oversold. The STOCH value of 65.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MEQ.

Mainstreet Equity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MEQ	80 Outperform	C$1.82B	5.90	19.75%	0.08%	16.22%	39.56%
Sector *	63 Neutral	$6.81B	13.62	-1.43%	7.31%	4.60%	-32.65%
FSV	―	$8.99B	63.34	12.16%	0.53%	―	―
CIGI	―	$7.96B	71.50	8.69%	0.19%	―	―
AIF	65 Neutral	C$2.29B	178.14	3.20%	1.13%	-23.26%	-644.01%
SVI	58 Neutral	C$1.71B	―	-23.35%	0.25%	7.94%	-12.23%
PKTEF	―	$99.66M	9.44	9.18%	―	―	―

Mainstreet Equity Corporate Events

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.

Mainstreet Equity Declares Quarterly Dividend Amid Strategic Growth

Mainstreet Equity Corp. has declared a quarterly cash dividend of $0.04 per common share for the quarter ending June 30, 2025, payable on July 31, 2025. This announcement underscores Mainstreet’s commitment to delivering value to its shareholders and reflects its strong financial position, supported by a strategy of acquiring and stabilizing undervalued properties to boost income. The dividend is designated as an eligible dividend under Canadian tax law, which may have implications for shareholders’ tax planning.