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

-0.3%

TSX:MEQ

1.8%

CA Real Estate

1.2%

CA Market


1 Year Return

33.6%

TSX:MEQ

7.5%

CA Real Estate

-0.4%

CA Market

MEQ outperformed the Real Estate industry which returned 6.8% over the past year.

MEQ outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

MEQIndustryMarket
7 Day-0.3%1.8%1.2%
30 Day-2.0%1.6%3.3%
90 Day11.9%3.2%0.8%
1 Year33.6%33.6%10.0%7.5%3.1%-0.4%
3 Year103.1%103.1%49.6%40.2%18.0%7.4%
5 Year54.1%54.1%79.7%44.4%22.0%4.5%

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 based on future cash flows and its price relative to the stock market?

8.99x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Mainstreet Equity's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Mainstreet Equity's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Mainstreet Equity is good value based on earnings compared to the CA Real Estate industry average.

Mainstreet Equity is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Mainstreet Equity, we can't assess if its growth is good value.


Price Based on Value of Assets

Mainstreet Equity is good value based on assets compared to the CA Real Estate industry average.


Next Steps

Future Growth

How is Mainstreet Equity expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

0.03%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mainstreet Equity's revenue is expected to grow by 8.8% yearly, however this is not considered high growth (20% yearly).

Mainstreet Equity's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Mainstreet Equity's revenue growth is expected to exceed the Canada market average.

Mainstreet Equity's earnings growth is positive but not above the Canada market average.

Mainstreet Equity's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Mainstreet Equity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Mainstreet Equity's year on year earnings growth rate has been positive over the past 5 years.

Mainstreet Equity's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Mainstreet Equity's 1-year earnings growth is negative, it can't be compared to the CA Real Estate industry average.


Return on Equity

Mainstreet Equity has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Mainstreet Equity used its assets less efficiently than the CA Real Estate industry average last year based on Return on Assets.


Return on Capital Employed

Mainstreet Equity's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mainstreet Equity's financial position?


Financial Position Analysis

Mainstreet Equity's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Mainstreet Equity's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Mainstreet Equity's level of debt (140.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (114.6% vs 140.4% today).

Debt is not well covered by operating cash flow (4%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Mainstreet Equity's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Mainstreet Equity's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Mainstreet Equity has not reported any payouts.

Unable to verify if Mainstreet Equity's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Mainstreet Equity has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Mainstreet Equity's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

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

Bob's remuneration is about average for companies of similar size in Canada.

Bob's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.5yrs

Average Tenure

The tenure for the Mainstreet Equity management team is about average.


Board Age and Tenure

13.5yrs

Average Tenure

The average tenure for the Mainstreet Equity board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Mainstreet Equity individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

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
SellCA$168,30821 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares3,000
Max PriceCA$56.12
BuyCA$56,25021 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,000
Max PriceCA$56.25
SellCA$84,76614 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,500
Max PriceCA$56.69
BuyCA$56,82614 Jun 19
Sheena Keslick
EntityIndividual
Role
Other Key Executive
Vice President of Operations
Shares1,000
Max PriceCA$56.93
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
SellCA$14,10010 Oct 18
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares300
Max PriceCA$47.00
SellCA$14,22802 Oct 18
Joseph Amantea
EntityIndividual
Role
Member of the Board of Directors
Corporate Secretary & Director
Shares300
Max PriceCA$47.43

Ownership Breakdown


Management Team

  • Johnny Lam

    Chief Operating Officer

    • Tenure: 11.5yrs
    • Compensation: CA$855.95k
  • Bob Dhillon

    President

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

    Corporate Secretary & Director

    • Tenure: 19.5yrs
    • Compensation: CA$35.00k
  • Sheena Keslick

    Vice President of Operations

    • Tenure: 6.9yrs
    • Compensation: CA$176.99k
  • Na Cui

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: CA$170.10k
  • Luckresha Baker

    Human Resources Manager

    • Tenure: 1.7yrs

Board Members

  • Ron Anderson (66yo)

    Director

    • Tenure: 8.4yrs
    • Compensation: CA$35.00k
  • Bob Dhillon

    President

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

    Corporate Secretary & Director

    • Tenure: 19.5yrs
    • Compensation: CA$35.00k
  • Rich Grimaldi

    Director

    • Tenure: 14.7yrs
    • Compensation: CA$35.00k
  • John Irwin

    Director

    • Tenure: 12.4yrs
    • Compensation: CA$35.00k
  • K.V. Dhillon

    Director

    • Tenure: 12.4yrs
    • 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$589.079m
  • 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 Analysis2019/09/18 23:38
End of Day Share Price2019/09/16 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.