Mainstreet Equity
Market Cap
CA$733.7m
Last Updated
2020/01/23 23:53 UTC
Data Sources
Company Financials +
Executive Summary
Mainstreet Equity Corp., a real estate corporation, engages in the acquisition, divestiture, financing, value-enhancement, and management of multi-family residential properties primarily in Western Canada.
Rewards
Risk Analysis
Snowflake Analysis
Fair value with concerning outlook.
Share Price & News
How has Mainstreet Equity's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MEQ has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.7%
MEQ
0.5%
CA Real Estate
0.4%
CA Market
1 Year Return
93.1%
MEQ
23.3%
CA Real Estate
10.1%
CA Market
Return vs Industry: MEQ exceeded the Canadian Real Estate industry which returned 25.6% over the past year.
Return vs Market: MEQ exceeded the Canadian Market which returned 10.4% over the past year.
Shareholder returns
| MEQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.7% | 0.5% | 0.4% |
| 30 Day | -2.2% | 2.1% | 2.1% |
| 90 Day | 24.6% | 7.6% | 6.4% |
| 1 Year | 93.1%93.1% | 25.2%23.3% | 13.6%10.1% |
| 3 Year | 133.5%133.5% | 58.6%49.0% | 17.2%6.6% |
| 5 Year | 134.4%134.4% | 91.5%51.9% | 37.5%17.3% |
Price Volatility Vs. Market
How volatile is Mainstreet Equity's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Is Mainstreet Equity's (TSE:MEQ) Share Price Gain Of 128% Well Earned?2 weeks ago | Simply Wall St
Mainstreet Equity Corp. (TSE:MEQ) Has A ROE Of 7.3%1 month ago | Simply Wall St
What Kind Of Shareholder Owns Most Mainstreet Equity Corp. (TSE:MEQ) Stock?Valuation
Is Mainstreet Equity undervalued compared to its fair value and its price relative to the market?
12.2x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MEQ (CA$77.24) is trading above our estimate of fair value (CA$54.38)
Significantly Below Fair Value: MEQ is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MEQ is good value based on its PE Ratio (12x) compared to the Real Estate industry average (12.8x).
PE vs Market: MEQ is good value based on its PE Ratio (12x) compared to the Canadian market (15.8x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate MEQ's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: MEQ is good value based on its PB Ratio (0.9x) compared to the CA Real Estate industry average (0.9x).
Next Steps
Future Growth
How is Mainstreet Equity forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
5.8%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if MEQ's forecast earnings growth is above the savings rate (1.4%).
Earnings vs Market: Insufficient data to determine if MEQ's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MEQ's revenue (5.8% per year) is forecast to grow faster than the Canadian market (5% per year).
High Growth Revenue: MEQ's revenue (5.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MEQ's Return on Equity is forecast to be high in 3 years time
Next Steps
Past Performance
How has Mainstreet Equity performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEQ has a large one-off gain of CA$26.9M impacting its September 30 2019 financial results.
Growing Profit Margin: MEQ's current net profit margins (42.6%) are lower than last year (62.9%).
Past Earnings Growth Analysis
Earnings Trend: MEQ's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: MEQ's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MEQ had negative earnings growth (-19.3%) over the past year, making it difficult to compare to the Real Estate industry average (-22.9%).
Return on Equity
High ROE: MEQ's Return on Equity (7.3%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Mainstreet Equity's financial position?
Financial Position Analysis
Short Term Liabilities: MEQ's short term assets (CA$8.4M) do not cover its short term liabilities (CA$191.2M).
Long Term Liabilities: MEQ's short term assets (CA$8.4M) do not cover its long term liabilities (CA$1.1B).
Debt to Equity History and Analysis
Debt Level: MEQ's debt to equity ratio (134.5%) is considered high.
Reducing Debt: MEQ's debt to equity ratio has increased from 106.9% to 134.5% over the past 5 years.
Debt Coverage: MEQ's debt is not well covered by operating cash flow (3.8%).
Interest Coverage: MEQ's interest payments on its debt are not well covered by EBIT (2.1x coverage).
Balance Sheet
Inventory Level: MEQ has a high level of physical assets or inventory.
Debt Coverage by Assets: MEQ's debt is not covered by short term assets (assets are 0x debt).
Next Steps
Dividend
What is Mainstreet Equity's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: Unable to evaluate MEQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate MEQ's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if MEQ's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if MEQ's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MEQ's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
What is the CEO of Mainstreet Equity's salary, the management and board of directors tenure and is there insider trading?
5.0yrs
Average management tenure
CEO
Bob Dhillon 0
0yrs
Tenure
CA$1,365,207
Compensation
Mr. Navjeet S. Dhillon, also known as Bob, is the Founder and Owner of Mainstreet Equity Corp. and serves as its Chief Executive Officer, President and has been Director of Mainstreet Equity Corp. since Ju ...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD1.04M) is about average for companies of similar size in the Canadian market ($USD1.00M).
Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.0yrs
Average Tenure
Experienced Management: MEQ's management team is seasoned and experienced (5 years average tenure).
Board Age and Tenure
13.9yrs
Average Tenure
Experienced Board: MEQ's board of directors are seasoned and experienced ( 13.9 years average tenure).
Insider Trading
Insider Buying: MEQ insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Treasurer |
| Shares | 100 |
| Max Price | CA$76.95 |
| Entity | Individual |
| Role | Member of the Board of Directors Treasurer |
| Shares | 400 |
| Max Price | CA$79.00 |
| Entity | Individual |
| Role | Member of the Board of Directors Treasurer |
| Shares | 200 |
| Max Price | CA$61.50 |
| Entity | Individual |
| Role | Member of the Board of Directors Treasurer |
| Shares | 500 |
| Max Price | CA$63.00 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 1,100 |
| Max Price | CA$60.00 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 400 |
| Max Price | CA$55.60 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 1,000 |
| Max Price | CA$56.25 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 3,000 |
| Max Price | CA$56.12 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 1,000 |
| Max Price | CA$56.93 |
| Entity | Individual |
| Role | Other Key Executive Vice President of Operations |
| Shares | 1,500 |
| Max Price | CA$56.69 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.
Management Team
Johnny C. Lam
Chief Operating Officer
- Tenure: 11.8yrs
- Compensation: CA$855.95k
Bob Dhillon
Founder
- Compensation: CA$1.37m
Joe Amantea
Treasurer
- Tenure: 19.8yrs
- Compensation: CA$35.00k
Sheena Keslick
Vice President of Operations
- Tenure: 7.3yrs
- Compensation: CA$176.99k
Na Cui
Chief Financial Officer
- Tenure: 2.8yrs
- Compensation: CA$170.10k
Luckresha Baker
Human Resources Manager
- Tenure: 2yrs
Board Members
Ron Anderson (66yo)
Independent Director
- Tenure: 8.8yrs
- Compensation: CA$35.00k
Bob Dhillon
Founder
- Compensation: CA$1.37m
Joe Amantea
Treasurer
- Tenure: 19.8yrs
- Compensation: CA$35.00k
Rich Grimaldi
Independent Director
- Tenure: 15yrs
- Compensation: CA$35.00k
John Irwin
Independent Director
- Tenure: 12.8yrs
- Compensation: CA$35.00k
K.V. Dhillon
Director
- Tenure: 12.8yrs
- Compensation: CA$35.00k
Company Information
Mainstreet Equity Corp.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Mainstreet Equity Corp.
- Ticker: MEQ
- Exchange: TSX
- Founded: 1997
- Industry: Real Estate Operating Companies
- Sector: Real Estate
- Market Cap: CA$733.651m
- Shares outstanding: 9.38m
- Website: https://www.mainst.biz
Number of Employees
Location
- Mainstreet Equity Corp.
- 305 – 10 Avenue SE
- Calgary
- Alberta
- T2G 0W2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MEQ | TSX (The Toronto Stock Exchange) | Yes | Common Voting Shares | CA | CAD | Dec 1998 |
| MEQY.F | OTCPK (Pink Sheets LLC) | Yes | Common Voting Shares | US | USD | Dec 1998 |
Biography
Mainstreet Equity Corp., a real estate corporation, engages in the acquisition, divestiture, financing, value-enhancement, and management of multi-family residential properties primarily in Western Canada. The company owns a portfolio of mid-market rental apartment buildings in Vancouver lower mainland, Calgary, Edmonton, Regina, and Saskatoon. As of September 30, 2019, it had a total portfolio of 12,898 residential units and 3 freestanding commercial houses, including townhouses, garden-style apartments, and midrise and high-rise apartments. The company was founded in 1997 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/23 23:53 |
| End of Day Share Price | 2020/01/23 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2019/09/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.