Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.73B
• Dividend Yield: 0.09%
• Average Volume (3M): 4.32K
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.19
• Revenue Growth: 16.22%
• EPS Growth: 39.56%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): 5.29
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 3,553
• 30 Day Avg. Volume: 4,322
• PEG Ratio: 0.24
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.35
• 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: 20.96% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: C$218.00 ▲(17.20%Upside)

Mainstreet Equity's strong valuation and robust financial performance are the primary drivers of the high stock score. Technical analysis suggests a neutral trend, while the consistent growth and positive corporate events support the stock's potential. The absence of clear earnings call insights does not detract given the other positive indicators.

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 through the acquisition, renovation, and management of mid-market apartment buildings. The company generates revenue primarily from rental income, which is enhanced by its strategy of purchasing underperforming properties, renovating them, and then increasing occupancy rates and rental prices. Through this value-add approach, Mainstreet is able to boost the net operating income (NOI) of its properties, which in turn increases their market value and potential for refinancing or resale. Additionally, Mainstreet may also benefit from economies of scale in property management and maintenance, as well as strategic partnerships and financing options that contribute to cost efficiencies and revenue growth.

Mainstreet Equity Financial Statement Overview

Summary

Mainstreet Equity demonstrates strong financial health with solid income growth and profitability, supported by a stable balance sheet and strong cash flow generation. The company continues to leverage its assets effectively, although some caution is advised due to its moderate debt levels. Overall, the financial outlook is positive with room for continued growth and strong operational performance.

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	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	266.08M	249.80M	210.03M	180.57M	159.93M	149.77M
Gross Profit	172.07M	160.44M	131.31M	109.67M	97.85M	93.03M
EBITDA	325.63M	288.41M	179.82M	94.73M	85.61M	80.56M
Net Income	245.42M	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet
Total Assets	3.81B	3.49B	3.16B	2.89B	2.67B	2.24B
Cash, Cash Equivalents and Short-Term Investments	209.54M	48.83M	81.76M	44.56M	19.22M	38.47M
Total Debt	1.81B	1.65B	1.57B	1.43B	1.36B	1.18B
Total Liabilities	2.15B	1.97B	1.85B	1.68B	1.58B	1.37B
Stockholders Equity	1.67B	1.52B	1.32B	1.21B	1.09B	867.09M
Cash Flow
Free Cash Flow	84.07M	91.14M	70.17M	51.91M	34.73M	34.14M
Operating Cash Flow	84.51M	91.46M	70.76M	52.68M	35.61M	35.45M
Investing Cash Flow	-135.98M	-172.19M	-158.59M	-102.23M	-240.40M	-106.95M
Financing Cash Flow	96.45M	47.80M	125.03M	74.89M	185.55M	109.90M

Mainstreet Equity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 186.01 is below the 20-day moving average (MA) of 189.98, below the 50-day MA of 190.88, and below the 200-day MA of 196.78, indicating a bearish trend. The MACD of -1.04 indicates Positive momentum. The RSI at 34.33 is Neutral, neither overbought nor oversold. The STOCH value of 21.16 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
MEQ	78 Outperform	C$1.73B	7.06	15.90%	0.09%	16.22%	39.56%
Sector *	63 Neutral	$6.87B	19.10	-1.13%	7.17%	4.72%	-24.75%
FSV		$7.84B	59.91	11.61%	0.64%	―	―
CIGI		$6.62B	45.93	11.57%	0.23%	―	―
AIF	67 Neutral	C$2.29B	178.14	2.13%	1.13%	-23.26%	-644.01%
SVI	61 Neutral	C$1.49B	―	-23.06%	0.29%	5.77%	-388.17%
PKTEF		$90.67M	―	-3.10%	―	―	―

Mainstreet Equity Corporate Events

Mainstreet Equity Achieves 14th Consecutive Quarter of Growth Amid Economic Challenges

Mainstreet Equity Corp. reported its 14th consecutive quarter of double-digit growth in Q2 2025, with significant increases in funds from operations, net operating income, and rental revenues despite global economic uncertainties. The company remains committed to its role as a provider of affordable housing and sees current economic challenges as opportunities for counter-cyclical growth, supported by strong cash reserves and a strategic pause in acquisitions to maintain liquidity.

Mainstreet Equity Corp. Declares Quarterly Dividend for Q1 2025

Mainstreet Equity Corp. announced a quarterly cash dividend of $0.04 per common share for the quarter ending March 31, 2025, payable on April 30, 2025. This announcement reflects the company’s ongoing commitment to providing returns to its shareholders while maintaining its strategic focus on acquiring and stabilizing undervalued properties. The dividend is designated as an eligible dividend for Canadian tax purposes, which may have favorable tax implications for shareholders.