Mainstreet Equity
Market Cap
CA$719.5m
Last Updated
2021/01/21 23:48 UTC
Data Sources
Company Financials +
Executive Summary
Mainstreet Equity Corp. engages in the acquisition, divestiture, value-enhancement, and management of multi-family residential properties in Western Canada. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 29.5% per year for the next 3 years
Snowflake Analysis
Proven track record and slightly overvalued.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MEQ's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
2.0%
MEQ
4.0%
CA Real Estate
-0.2%
CA Market
1 Year Return
-1.5%
MEQ
7.0%
CA Real Estate
1.5%
CA Market
Return vs Industry: MEQ underperformed the Canadian Real Estate industry which returned 6.7% over the past year.
Return vs Market: MEQ underperformed the Canadian Market which returned 2.1% over the past year.
Shareholder returns
| MEQ | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 4.0% | -0.2% |
| 30 Day | -5.4% | 1.3% | 4.0% |
| 90 Day | 18.5% | 7.6% | 12.9% |
| 1 Year | -1.5%-1.5% | 8.0%7.0% | 5.2%1.5% |
| 3 Year | 78.0%78.0% | 44.9%39.9% | 14.2%3.4% |
| 5 Year | 157.1%157.1% | 111.2%98.6% | 63.2%38.1% |
Long-Term 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 weeks ago | Simply Wall St
At CA$74.57, Is It Time To Put Mainstreet Equity Corp. (TSE:MEQ) On Your Watch List?4 weeks ago | Simply Wall St
We Wouldn't Rely On Mainstreet Equity's (TSE:MEQ) Statutory Earnings As A Guide1 month ago | Simply Wall St
What Percentage Of Mainstreet Equity Corp. (TSE:MEQ) Shares Do Insiders Own?Valuation
Is Mainstreet Equity undervalued compared to its fair value and its price relative to the market?
10.52x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MEQ (CA$77) is trading above our estimate of fair value (CA$51.32)
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 (10.5x) compared to the CA Real Estate industry average (23.7x).
PE vs Market: MEQ is good value based on its PE Ratio (10.5x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: MEQ's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MEQ's PB Ratio (0.8x) is in line with the CA Real Estate industry average.
Next Steps
Future Growth
How is Mainstreet Equity forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
-29.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MEQ's earnings are forecast to decline over the next 3 years (-29.5% per year).
Earnings vs Market: MEQ's earnings are forecast to decline over the next 3 years (-29.5% per year).
High Growth Earnings: MEQ's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MEQ's revenue (7.4% per year) is forecast to grow slower than the Canadian market (8% per year).
High Growth Revenue: MEQ's revenue (7.4% 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?
8.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MEQ has a large one-off gain of CA$37.2M impacting its September 30 2020 financial results.
Growing Profit Margin: MEQ's current net profit margins (45.8%) are higher than last year (42.6%).
Past Earnings Growth Analysis
Earnings Trend: MEQ's earnings have grown by 8.7% per year over the past 5 years.
Accelerating Growth: MEQ's earnings growth over the past year (16.8%) exceeds its 5-year average (8.7% per year).
Earnings vs Industry: MEQ earnings growth over the past year (16.8%) exceeded the Real Estate industry -25.8%.
Return on Equity
High ROE: MEQ's Return on Equity (7.9%) is considered low.
Next Steps
Financial Health
How is Mainstreet Equity's financial position?
Financial Position Analysis
Short Term Liabilities: MEQ's short term assets (CA$46.1M) do not cover its short term liabilities (CA$111.3M).
Long Term Liabilities: MEQ's short term assets (CA$46.1M) do not cover its long term liabilities (CA$1.3B).
Debt to Equity History and Analysis
Debt Level: MEQ's debt to equity ratio (136%) is considered high.
Reducing Debt: MEQ's debt to equity ratio has increased from 105.1% to 136% over the past 5 years.
Debt Coverage: MEQ's debt is not well covered by operating cash flow (3%).
Interest Coverage: MEQ's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Mainstreet Equity current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate MEQ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate MEQ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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
How experienced are the management team and are they aligned to shareholders interests?
3.8yrs
Average management tenure
CEO
Bob Dhillon
no data
Tenure
CA$2,393,225
Compensation
Mr. Navjeet S. Dhillon, also known as Bob, is the Founder and Owner of Mainstreet Equity Corp. and serves as its Chief Executive Officer, President and has been Director of Mainstreet Equity Corp. since Ju...
CEO Compensation Analysis
Compensation vs Market: Bob's total compensation ($USD1.90M) is above average for companies of similar size in the Canadian market ($USD769.99K).
Compensation vs Earnings: Bob's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | CA$2.39m | 46.17% CA$ 332.2m | |
| Chief Financial Officer | 3.83yrs | CA$196.54k | no data | |
| Chief Operating Officer | 12.83yrs | CA$873.11k | no data | |
| Treasurer | 20.83yrs | CA$35.00k | 0.17% CA$ 1.2m | |
| Vice President of Operations | 8.25yrs | CA$248.16k | 0.011% CA$ 77.0k | |
| Human Resources Manager | 3yrs | no data | no data |
3.8yrs
Average Tenure
Experienced Management: MEQ's management team is considered experienced (3.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | no data | CA$2.39m | 46.17% CA$ 332.2m | |
| Treasurer | 20.83yrs | CA$35.00k | 0.17% CA$ 1.2m | |
| Independent Director | 9.67yrs | CA$40.00k | 0.040% CA$ 290.5k | |
| Independent Director | 16yrs | CA$35.00k | 0.44% CA$ 3.1m | |
| Independent Director | 13.75yrs | CA$40.00k | 0.021% CA$ 153.9k | |
| Director | 13.75yrs | CA$35.00k | 2.02% CA$ 14.5m |
14.9yrs
Average Tenure
Experienced Board: MEQ's board of directors are seasoned and experienced ( 14.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MEQ insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
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$719.469m
- Shares outstanding: 9.35m
- Website: https://www.mainst.biz
Number of Employees
Location
- Mainstreet Equity Corp.
- 305 – 10 Avenue SE
- Suite 100
- 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. 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 res...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:48 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2020/09/30 |
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.