TSX:MEQ

Stock Analysis Report

Mainstreet Equity

Executive Summary

Mainstreet Equity Corp., a real estate corporation, engages in the acquisition, divestiture, value-enhancement, and management of multi-family residential properties primarily in Western Canada.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-2.6%

MEQ

-0.05%

CA Real Estate

0.2%

CA Market


1 Year Return

30.2%

MEQ

15.9%

CA Real Estate

1.2%

CA Market

Return vs Industry: MEQ exceeded the Canadian Real Estate industry which returned 15.9% over the past year.

Return vs Market: MEQ exceeded the Canadian Market which returned 1.2% over the past year.


Shareholder returns

MEQIndustryMarket
7 Day-2.6%-0.05%0.2%
30 Day-4.6%2.1%-2.5%
90 Day6.3%4.6%-1.5%
1 Year30.2%30.2%18.1%15.9%4.7%1.2%
3 Year84.8%84.8%53.5%43.6%14.0%3.8%
5 Year46.5%46.5%80.3%44.1%26.4%8.1%

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

Valuation

Is Mainstreet Equity undervalued compared to its fair value and its price relative to the market?

8.58x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: MEQ (CA$59.89) is trading above our estimate of fair value (CA$52.86)

Significantly Undervalued: 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 (8.6x) compared to the Real Estate industry average (14.4x).

PE vs Market: MEQ is good value based on its PE Ratio (8.6x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low 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 (0.7x) 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 3 analysts?

1.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MEQ's forecast earnings growth (1.6% per year) is below the savings rate (1.9%).

Earnings vs Market: MEQ's earnings (1.6% per year) are forecast to grow slower than the Canadian market (13.3% per year).

High Growth Earnings: MEQ's earnings are forecast to grow, but not significantly.

Revenue vs Market: MEQ's revenue (8.8% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: MEQ's revenue (8.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MEQ's earnings have grown by 11.5% 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 (-57%) over the past year, making it difficult to compare to the Real Estate industry average (-29.6%).


Return on Equity

High ROE: MEQ's Return on Equity (8.2%) is considered low.


Return on Assets

ROA vs Industry: MEQ's Return on Assets is below or equal to the Real Estate industry average last year.


Return on Capital Employed

ROCE Improving: MEQ's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Mainstreet Equity's financial position?


Financial Position Analysis

Short Term Liabilities: MEQ's short term assets (CA$9.9M) do not cover its short term liabilities (CA$193.8M)

Long Term Liabilities: MEQ's short term assets (9.9M) do not cover its long term liabilities (1.1B)


Debt to Equity History and Analysis

Debt Level: MEQ's debt to equity ratio (140.4%) is considered high

Reducing Debt: MEQ's debt to equity ratio has increased from 114.6% to 140.4% over the past 5 years.

Debt Coverage: MEQ's debt is not well covered by operating cash flow (4%).

Interest Coverage: MEQ's interest payments on its debt are not well covered by EBIT (2x 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

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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?

2.6yrs

Average management tenure


CEO

Bob Dhillon 0

0yrs

Tenure

CA$1,365,207

Compensation

Mr. Navjeet N. 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 ($USD1.04M) is about average for companies of similar size in the Canadian market ($USD1.08M).

Compensation vs Earnings: Bob's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: MEQ's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

13.6yrs

Average Tenure

Experienced Board: MEQ's board of directors are seasoned and experienced ( 13.6 years average tenure).


Insider Trading

Insider Buying: MEQ insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$12,24411 Oct 19
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares200
Max PriceCA$61.50
SellCA$31,49009 Sep 19
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares500
Max PriceCA$63.00
SellCA$66,00025 Jul 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,100
Max PriceCA$60.00
SellCA$22,24026 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares400
Max PriceCA$55.60
BuyCA$56,25021 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,000
Max PriceCA$56.25
SellCA$168,30821 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares3,000
Max PriceCA$56.12
BuyCA$56,82614 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,000
Max PriceCA$56.93
SellCA$84,76614 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,500
Max PriceCA$56.69
SellCA$12,60121 Dec 18
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares300
Max PriceCA$42.00
SellCA$16,96119 Dec 18
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares400
Max PriceCA$42.78

Ownership Breakdown


Management Team

  • Johnny Lam

    Chief Operating Officer

    • Tenure: 11.6yrs
    • Compensation: CA$855.95k
  • Bob Dhillon

    President

    • Tenure: 0yrs
    • Compensation: CA$1.37m
  • Joe Amantea

    Corporate Secretary & Director

    • Tenure: 19.6yrs
    • Compensation: CA$35.00k
  • Sheena Keslick

    Vice President of Operations

    • Tenure: 7yrs
    • Compensation: CA$176.99k
  • Na Cui

    Chief Financial Officer

    • Tenure: 2.6yrs
    • Compensation: CA$170.10k
  • Luckresha Baker

    Human Resources Manager

    • Tenure: 1.8yrs

Board Members

  • Ron Anderson (66yo)

    Director

    • Tenure: 8.5yrs
    • Compensation: CA$35.00k
  • Bob Dhillon

    President

    • Tenure: 0yrs
    • Compensation: CA$1.37m
  • Joe Amantea

    Corporate Secretary & Director

    • Tenure: 19.6yrs
    • Compensation: CA$35.00k
  • Rich Grimaldi

    Director

    • Tenure: 14.8yrs
    • Compensation: CA$35.00k
  • John Irwin

    Director

    • Tenure: 12.5yrs
    • Compensation: CA$35.00k
  • K.V. Dhillon

    Director

    • Tenure: 12.5yrs
    • 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$561.872m
  • Shares outstanding: 9.38m
  • Website: https://www.mainst.biz

Number of Employees


Location

  • Mainstreet Equity Corp.
  • 305 – 10 Avenue SE
  • Suite 100
  • Calgary
  • Alberta
  • T2G 0W2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MEQTSX (The Toronto Stock Exchange)YesCommon Voting SharesCACADDec 1998
MEQY.FOTCPK (Pink Sheets LLC)YesCommon Voting SharesUSUSDDec 1998

Biography

Mainstreet Equity Corp., a real estate corporation, engages in the acquisition, divestiture, value-enhancement, and management of multi-family residential properties primarily in Western Canada. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:38
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.