Mainstreet Equity (MEQ) AI Stock Analysis

• Market Cap: C$1.74B
• Dividend Yield: 0.08%
• Average Volume (3M): 3.78K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.15
• Revenue Growth: 14.29%
• EPS Growth: 144.57%
• Country: CA
• Employees: 597
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): 3.41
• Shares Outstanding: 9,318,818
• 10 Day Avg. Volume: 3,719
• 30 Day Avg. Volume: 3,776
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$219.00
• Price Target Upside: 17.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 75 Outperform
• Price Target: C$219.00 ▲(17.74% Upside)

Mainstreet Equity's strong financial performance and attractive valuation are the primary drivers of its overall score. The company's profitability and efficient operations are complemented by a low P/E ratio, indicating potential undervaluation. Technical analysis suggests neutral momentum, which slightly tempers the overall positive outlook.

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 primarily through rental income generated from its portfolio of residential properties. The company acquires undervalued or underperforming properties, renovates them to improve their market appeal, and then leases them out at competitive rental rates. This business model allows Mainstreet to increase occupancy rates and rental income over time. Additionally, the company benefits from property appreciation, which enhances its asset value and can provide capital gains upon sale. Mainstreet's focus on cost-effective renovations and efficient property management also helps improve profitability. Strategic partnerships with financial institutions enable Mainstreet to access capital for acquisitions and redevelopment projects, further supporting growth in revenue.

Mainstreet Equity Financial Statement Overview

Summary

Mainstreet Equity demonstrates strong profitability with high margins and stable revenue growth. The balance sheet shows moderate leverage and effective equity utilization, though there is room for improvement in reducing debt levels. Cash flow performance is mixed, with a significant drop in free cash flow growth, but overall cash conversion remains healthy.

Income Statement

Mainstreet Equity demonstrates strong profitability with a high net profit margin of 92.24% in TTM, indicating efficient cost management. The gross profit margin remains stable around 64.67%, showcasing consistent operational efficiency. Revenue growth is modest at 2.38% TTM, suggesting steady expansion. The EBIT and EBITDA margins are exceptionally high, reflecting robust earnings performance.

Balance Sheet

The company's debt-to-equity ratio of 1.09 indicates moderate leverage, which is typical for the real estate industry. Return on equity at 15.93% TTM shows effective use of equity to generate profits. The equity ratio of 44.20% suggests a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Free cash flow growth has declined significantly by 99.9% TTM, raising concerns about cash generation. However, the operating cash flow to net income ratio of 0.36 indicates that cash flows are still supporting earnings. The free cash flow to net income ratio remains strong at 0.99, suggesting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	272.42M	249.80M	210.03M	180.57M	159.93M	149.77M
Gross Profit	178.82M	160.44M	131.31M	109.67M	97.85M	93.03M
EBITDA	360.84M	288.41M	179.82M	94.73M	85.61M	80.56M
Net Income	307.79M	199.88M	109.41M	120.54M	225.53M	68.55M
Balance Sheet
Total Assets	3.87B	3.49B	3.16B	2.89B	2.67B	2.24B
Cash, Cash Equivalents and Short-Term Investments	215.98M	48.83M	81.76M	44.56M	19.22M	38.47M
Total Debt	1.82B	1.65B	1.57B	1.43B	1.36B	1.18B
Total Liabilities	2.16B	1.97B	1.85B	1.68B	1.58B	1.37B
Stockholders Equity	1.71B	1.52B	1.32B	1.21B	1.09B	867.09M
Cash Flow
Free Cash Flow	83.23M	91.14M	70.17M	51.91M	34.73M	34.14M
Operating Cash Flow	83.67M	91.46M	70.76M	52.68M	35.61M	35.45M
Investing Cash Flow	-71.71M	-172.19M	-158.59M	-102.23M	-240.40M	-106.95M
Financing Cash Flow	157.60M	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 192.66, below the 50-day MA of 193.20, and below the 200-day MA of 194.38, indicating a bearish trend. The MACD of -2.13 indicates Positive momentum. The RSI at 32.46 is Neutral, neither overbought nor oversold. The STOCH value of 21.35 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
FSV	76 Outperform	12.03B	61.94	11.40%	0.55%	20.02%	78.29%
MEQ	75 Outperform	C$1.74B	5.66	19.75%	0.08%	14.29%	144.57%
CIGI	68 Neutral	11.11B	71.58	8.09%	0.19%	20.00%	-23.17%
AIF	68 Neutral	2.52B	-43.40	48.71%	1.03%	-33.01%	-2201.72%
SVI	58 Neutral	1.82B	-59.12	-32.46%	0.24%	7.94%	-12.23%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

Mainstreet Equity Corporate Events

Mainstreet Equity Achieves 15th Consecutive Quarter of Growth

Mainstreet Equity Corp. has reported its 15th consecutive quarter of double-digit growth, showcasing the resilience of its business model amid global economic uncertainties. The company saw a 10% increase in funds from operations, a 16% rise in net operating income, and a 10% growth in rental revenues. With an operating margin increase to 67.5% and a liquidity position of $815 million, Mainstreet is poised for further growth by capitalizing on the current economic environment to accelerate acquisitions and continue its strategic expansion.

Mainstreet Equity Declares Quarterly Dividend Amid Strategic Growth

Mainstreet Equity Corp. has declared a quarterly cash dividend of $0.04 per common share for the quarter ending June 30, 2025, payable on July 31, 2025. This announcement underscores Mainstreet’s commitment to delivering value to its shareholders and reflects its strong financial position, supported by a strategy of acquiring and stabilizing undervalued properties to boost income. The dividend is designated as an eligible dividend under Canadian tax law, which may have implications for shareholders’ tax planning.