Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.63B
• Dividend Yield: 0.09%
• Average Volume (3M): 4.34K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.31
• 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: 0.14
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 6.29
• P/FCF Ratio: 20.34
• 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: N/A
• 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

Consistent revenue growth indicates a strong demand for Mainstreet Equity's rental properties, supporting long-term business sustainability.

Profitability

Strong profitability reflects efficient cost management and pricing strategy, enhancing Mainstreet's ability to reinvest in growth opportunities.

Cash Flow Management

Robust cash flow management ensures Mainstreet can fund operations and growth initiatives, providing financial stability and flexibility.

Negative Factors

Debt Levels

While the debt level is manageable, further reduction could enhance financial stability and reduce interest burden, improving long-term resilience.

Dividend Yield

A low dividend yield might limit appeal to income investors, potentially affecting stock demand and limiting shareholder return in the short term.

Non-Operational Income

Dependence on non-operational income could distort profitability metrics, posing risks if such income sources are not sustainable long-term.

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	85.38M	85.38M	92.14M	71.65M	52.37M	35.25M
Operating Cash Flow	85.70M	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 above the 20-day moving average (MA) of 177.47, above the 50-day MA of 180.76, and below the 200-day MA of 187.88, indicating a bearish trend. The MACD of -1.33 indicates Negative momentum. The RSI at 38.47 is Neutral, neither overbought nor oversold. The STOCH value of 41.62 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	70 Outperform	C$1.63B	5.67	17.29%	0.09%	10.61%	43.64%
AIF	69 Neutral	C$2.00B	-34.58	3.63%	1.07%	-27.10%	-2415.77%
IEI	66 Neutral	C$34.73M	7.14	4.45%	2.31%	2.03%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BRE	46 Neutral	C$131.35M	-12.19	―	10.31%	58.15%	-235.04%
SVI	43 Neutral	C$1.81B	-516.67	-2.63%	0.25%	9.98%	93.01%

Mainstreet Equity Corporate Events

Mainstreet Equity Achieves Double-Digit Growth in FY 2025

Mainstreet Equity Corp. reported significant financial growth in FY 2025, with a 13% increase in funds from operations and a 14% rise in net operating income, despite economic uncertainties and a strategic pause in acquisitions. The company plans to leverage its $900 million liquidity for expansion in 2026, aiming to enhance its market position by capitalizing on overlooked mid-market rental properties.

The most recent analyst rating on (TSE:MEQ) stock is a Buy with a C$212.00 price target. To see the full list of analyst forecasts on Mainstreet Equity stock, see the TSE:MEQ Stock Forecast page.