Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.75B
• Dividend Yield: 0.06%
• Average Volume (3M): 4.47K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.24
• Revenue Growth: 18.02%
• EPS Growth: 15.10%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 83
• Industry: Real Estate - Services
• EPS (TTM): 20.13
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 3,160
• 30 Day Avg. Volume: 4,475
• PEG Ratio: 0.62
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Number of Analyst Covering: 0

Mainstreet Equity's stock score is robust, driven by its solid financial performance and attractive valuation. The company's ability to maintain profitability and strong growth metrics underpins a positive long-term outlook, despite current technical challenges.

Mainstreet Equity Business Overview & Revenue Model

Company Description

Mainstreet Equity Corp. (MEQ) is a Canadian real estate company focused on acquiring and managing mid-market rental apartment buildings in Western Canada. The company primarily operates within the multi-family residential sector and is known for its strategic approach to real estate investment, which includes the repositioning and upgrading of its properties to enhance value and appeal to a diverse tenant base.

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 solid financial health with strong profitability and efficient cash management. While revenue and profit margins are commendable, attention to stabilizing net income will enhance future financial stability. The balance sheet reflects prudent financial leverage, supporting growth opportunities in the real estate sector.

Income Statement

Mainstreet Equity shows a strong financial performance with substantial revenue growth from previous years. The gross profit margin is robust at 64.35% TTM. The net profit margin is also impressive at 72.44% TTM, indicating efficient cost management. However, the decline in net income from the previous annual report suggests some volatility, which needs attention.

Balance Sheet

The company's balance sheet reveals a moderate debt-to-equity ratio of 1.10, which is reasonable for the real estate industry. Return on equity is high at 11.91% TTM, reflecting strong profitability. The equity ratio stands at 43.32% TTM, indicating a healthy capital structure but with room for leverage improvement.

Cash Flow

The cash flow analysis shows a positive trajectory with a significant increase in free cash flow. The operating cash flow to net income ratio is 0.50 TTM, suggesting efficient cash conversion. However, the free cash flow to net income ratio is slightly lower at 0.50 TTM, which might indicate potential reinvestment needs.

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
	EBIT
160.44M	113.08M	109.67M	97.85M	93.03M
	EBITDA
288.41M	179.82M	94.73M	85.61M	80.56M
	Net Income Common Stockholders
199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
48.83M	81.76M	44.56M	19.22M	38.47M
	Total Assets
3.49B	3.16B	2.89B	2.67B	2.24B
	Total Debt
1.65B	1.57B	1.43B	1.36B	1.18B
	Net Debt
1.60B	1.48B	1.39B	1.34B	1.14B
	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: Negative
• Last Price: 188.00
• 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 188 is above the 20-day moving average (MA) of 187.06, below the 50-day MA of 191.49, and below the 200-day MA of 196.60, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 74.81 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	77 Outperform	C$1.75B	9.34	12.66%	0.06%	18.02%	15.10%
BEI.UN	75 Outperform	C$3.43B	5.40	13.02%	2.19%	10.56%	-15.69%
MRG.UN	73 Outperform	C$892.41M	8.92	5.29%	4.45%	3.79%	-40.78%
KMP.UN	73 Outperform	C$2.05B	3.14	23.97%	4.12%	5.04%	151.14%
CAR.UN	68 Neutral	C$6.66B	23.71	3.20%	3.62%	4.45%	―
Sector *	59 Neutral	$2.74B	11.73	0.14%	8782.99%	5.34%	-16.62%
IIP.UN	58 Neutral	C$1.61B	―	-6.27%	3.50%	3.85%	-266.02%

Mainstreet Equity Corporate Events

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.

Spark’s Take on TSE:MEQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:MEQ is a Neutral.

Mainstreet Equity’s stock score reflects its robust financial performance and attractive valuation, tempered by current technical weaknesses. The company’s long-term growth strategy and consistent performance underpin a positive outlook, despite short-term market challenges.

To see Spark’s full report on TSE:MEQ stock, click here.

Mainstreet Equity Achieves 13th Consecutive Quarter of Double-Digit Growth

Mainstreet Equity Corp. reported its 13th consecutive quarter of double-digit growth in Q1 2025, with a notable increase in key metrics such as FFO, NOI, and rental revenues, despite the typically slow winter rental season. The company’s strong performance reflects its strategic focus on countercyclical growth and commitment to affordable housing, with plans for portfolio expansion amid current economic conditions.