Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.69B
• Dividend Yield: 0.07%
• Average Volume (3M): 4.86K
• Price to Earnings (P/E): 9.0
• Beta (1Y): 0.21
• Revenue Growth: 18.02%
• EPS Growth: 15.10%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 74
• Industry: Real Estate - Services
• EPS (TTM): 20.13
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 7,236
• 30 Day Avg. Volume: 4,860
• PEG Ratio: 0.60
• Price to Book (P/B): N/A
• Price to Sales (P/S): 6.70
• Price to Cash Flow (P/CF): 20.30
• P/FCF Ratio: 13.30
• 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 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.

Mainstreet Equity Business Overview & Revenue Model

Company Description

Mainstreet Equity Corp. (MEQ) is a Canadian real estate company that specializes in the acquisition, redevelopment, and management of mid-market rental apartment buildings in Western Canada. The company's core operations focus on enhancing the value of its properties through renovations and efficient management practices, aiming to provide affordable and high-quality living spaces for its tenants.

How the Company Makes Money

Mainstreet Equity Corp. makes money primarily through rental income generated from its portfolio of residential properties. By acquiring undervalued properties and investing in significant renovations, the company enhances the quality and appeal of these units, allowing them to command higher rental rates. Additionally, Mainstreet benefits from increased property values over time, which can be leveraged for refinancing or strategic sales. The company's revenue model is further supported by its focus on cost-efficient management practices, reducing operating expenses, and maximizing net operating income. Key factors contributing to its earnings include strategic acquisitions, property upgrades, and maintaining high occupancy rates within its rental properties.

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
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
258.92M	249.80M	210.03M	180.57M	159.93M	149.77M
	Gross Profit
166.63M	160.44M	131.31M	109.67M	97.85M	93.03M
	EBIT
158.25M	160.44M	113.08M	109.67M	97.85M	93.03M
	EBITDA
236.07M	288.41M	179.82M	94.73M	85.61M	80.56M
	Net Income Common Stockholders
187.56M	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
170.06M	48.83M	81.76M	44.56M	19.22M	38.47M
	Total Assets
3.42B	3.49B	3.16B	2.89B	2.67B	2.24B
	Total Debt
1.70B	1.65B	1.57B	1.43B	1.36B	1.18B
	Net Debt
1.69B	1.60B	1.48B	1.39B	1.34B	1.14B
	Total Liabilities
2.00B	1.97B	1.85B	1.68B	1.58B	1.37B
	Stockholders Equity
1.42B	1.52B	1.32B	1.21B	1.09B	867.09M
Cash Flow		Free Cash Flow
94.14M	91.14M	70.17M	51.91M	34.73M	34.14M
	Operating Cash Flow
94.43M	91.46M	70.76M	52.68M	35.61M	35.45M
	Investing Cash Flow
-164.65M	-172.19M	-158.59M	-102.23M	-240.40M	-106.95M
	Financing Cash Flow
53.95M	47.80M	125.03M	74.89M	185.55M	109.90M

Mainstreet Equity Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.74
• 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 186.74 is below the 20-day moving average (MA) of 187.83, below the 50-day MA of 196.87, and below the 200-day MA of 195.22, indicating a bearish trend. The MACD of -3.17 indicates Negative momentum. The RSI at 48.79 is Neutral, neither overbought nor oversold. The STOCH value of 79.25 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
BEI.UN	77 Outperform	$3.39B	5.35	13.02%	2.33%	10.56%	-15.69%
MRG.UN	75 Outperform	C$872.64M	8.72	5.29%	4.58%	3.79%	-40.78%
KMP.UN	72 Outperform	C$1.99B	3.06	23.97%	4.26%	5.04%	151.14%
CAR.UN	72 Outperform	C$6.52B	23.12	3.20%	3.80%	4.45%	―
IIP.UN	70 Outperform	C$1.55B	―	-6.27%	3.67%	3.85%	-266.02%
MEQ	66 Neutral	C$1.69B	9.03	12.66%	0.07%	18.02%	15.10%
Sector *	61 Neutral	$4.43B	16.22	-3.23%	11.37%	6.25%	-21.19%

Mainstreet Equity Corporate Events

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.

Mainstreet Equity Corp. Boosts Quarterly Dividend by 45%

Mainstreet Equity Corp. announced a substantial 45% increase in its quarterly dividend to $0.04 per share for the period ending December 31, 2024, payable at the end of January 2025. This increase reflects the company’s strong financial position and commitment to rewarding shareholders, aligning with its strategic focus on leveraging robust liquidity and stabilizing assets to maximize net operating income.