Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.77B
• Dividend Yield: 0.07%
• Average Volume (3M): 4.66K
• Price to Earnings (P/E): 7.2
• Beta (1Y): 0.21
• Revenue Growth: 16.22%
• EPS Growth: 39.56%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 66
• Industry: Real Estate - Services
• EPS (TTM): 5.29
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 4,431
• 30 Day Avg. Volume: 4,657
• 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: 17.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 77 Outperform
• Price Target: C$219.00 ▲(14.56%Upside)

Mainstreet Equity's strong financial performance and attractive valuation are the primary drivers behind its high overall score. The stock's technical indicators remain neutral, while positive corporate events underscore its strategic strength, although the moderate debt level and declining cash flow growth are noted risks.

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 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
	EBIT
168.18M	141.34M	113.08M	109.67M	97.85M	93.03M
	EBITDA
325.63M	288.41M	179.82M	94.73M	85.61M	80.56M
	Net Income Common Stockholders
245.42M	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
209.54M	48.83M	81.76M	44.56M	19.22M	38.47M
	Total Assets
3.81B	3.49B	3.16B	2.89B	2.67B	2.24B
	Total Debt
1.81B	1.65B	1.57B	1.43B	1.36B	1.18B
	Net Debt
1.60B	1.60B	1.48B	1.39B	1.34B	1.14B
	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: 191.16
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 191.16 is below the 20-day moving average (MA) of 192.36, above the 50-day MA of 189.90, and below the 200-day MA of 197.15, indicating a neutral trend. The MACD of 0.20 indicates Positive momentum. The RSI at 48.39 is Neutral, neither overbought nor oversold. The STOCH value of 19.40 is Positive, 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$1.77B	7.22	15.90%	0.07%	16.22%	39.56%
FSV	72 Outperform	$10.95B	60.70	11.61%	0.58%	22.37%	46.30%
CIGI	69 Neutral	$8.73B	43.86	11.57%	0.24%	17.07%	42.36%
AIF	66 Neutral	C$2.34B	178.14	2.13%	1.14%	-23.26%	-644.01%
SVI	63 Neutral	C$1.54B	―	-23.06%	0.28%	5.77%	-388.17%
Sector *	61 Neutral	$2.82B	10.88	0.42%	8438.92%	5.74%	-20.95%

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.