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Mainstreet Equity

TSX:MEQ
Snowflake Description

Fair value with questionable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MEQ
TSX
CA$406M
Market Cap
  1. Home
  2. CA
  3. Real Estate
Company description

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 last earnings update was 52 days ago. More info.


Add to Portfolio Compare Print
  • Mainstreet Equity has significant price volatility in the past 3 months.
MEQ Share Price and Events
7 Day Returns
-3.9%
TSX:MEQ
-3.9%
CA Real Estate
-0.1%
CA Market
1 Year Returns
-10.4%
TSX:MEQ
-11.8%
CA Real Estate
-24.6%
CA Market
MEQ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Mainstreet Equity (MEQ) -3.9% -51.7% -44.6% -10.4% 17.9% 16.6%
CA Real Estate -3.9% -26% -22.4% -11.8% 1.5% 4.7%
CA Market -0.1% -21.2% -24.7% -24.6% -22.1% -16.5%
1 Year Return vs Industry and Market
  • MEQ outperformed the Real Estate industry which returned -11.8% over the past year.
  • MEQ outperformed the Market in Canada which returned -24.6% over the past year.
Price Volatility
MEQ
Industry
5yr Volatility vs Market

MEQ Value

 Is Mainstreet Equity undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mainstreet Equity to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mainstreet Equity.

TSX:MEQ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.3%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:MEQ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.4%
Equity Risk Premium S&P Global 5.4%
Real Estate Unlevered Beta Simply Wall St/ S&P Global 0.98
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.98 (1 + (1- 26.5%) (267.48%))
2.277
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.44% + (2 * 5.44%)
12.32%

Discounted Cash Flow Calculation for TSX:MEQ using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mainstreet Equity is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

TSX:MEQ DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 12.32%)
2020 38.57 Est @ 5.42% 34.34
2021 40.20 Est @ 4.23% 31.86
2022 41.56 Est @ 3.39% 29.33
2023 42.72 Est @ 2.8% 26.84
2024 43.75 Est @ 2.4% 24.47
2025 44.67 Est @ 2.11% 22.25
2026 45.52 Est @ 1.91% 20.19
2027 46.33 Est @ 1.77% 18.29
2028 47.10 Est @ 1.67% 16.55
2029 47.86 Est @ 1.6% 14.97
Present value of next 10 years cash flows CA$239.00
TSX:MEQ DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$47.86 × (1 + 1.44%) ÷ (12.32% – 1.44%)
CA$446.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$446.18 ÷ (1 + 12.32%)10
CA$139.62
TSX:MEQ Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$239.00 + CA$139.62
CA$378.62
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$378.62 / 9.38
CA$40.36
TSX:MEQ Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$40.36
Current discount Discount to share price of CA$43.25
= -1 x (CA$43.25 - CA$40.36) / CA$40.36
-7.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mainstreet Equity is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mainstreet Equity's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mainstreet Equity's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:MEQ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$6.29
TSX:MEQ Share Price ** TSX (2020-04-02) in CAD CA$43.25
Canada Real Estate Industry PE Ratio Median Figure of 20 Publicly-Listed Real Estate Companies 10.47x
Canada Market PE Ratio Median Figure of 497 Publicly-Listed Companies 10.36x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mainstreet Equity.

TSX:MEQ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MEQ Share Price ÷ EPS (both in CAD)

= 43.25 ÷ 6.29

6.88x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Mainstreet Equity's expected growth come at a high price?
Raw Data
TSX:MEQ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.88x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
Not available
North America Real Estate Industry PEG Ratio Median Figure of 14 Publicly-Listed Real Estate Companies 0.58x
Canada Market PEG Ratio Median Figure of 233 Publicly-Listed Companies 0.67x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Mainstreet Equity, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Mainstreet Equity's assets?
Raw Data
TSX:MEQ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$85.90
TSX:MEQ Share Price * TSX (2020-04-02) in CAD CA$43.25
Canada Real Estate Industry PB Ratio Median Figure of 37 Publicly-Listed Real Estate Companies 0.62x
Canada Market PB Ratio Median Figure of 2,356 Publicly-Listed Companies 0.98x
TSX:MEQ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MEQ Share Price ÷ Book Value per Share (both in CAD)

= 43.25 ÷ 85.90

0.5x

* Primary Listing of Mainstreet Equity.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mainstreet Equity is good value based on assets compared to the CA Real Estate industry average.
X
Value checks
We assess Mainstreet Equity's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Real Estate industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Real Estate industry average (and greater than 0)? (1 check)
  5. Mainstreet Equity has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MEQ Future Performance

 How is Mainstreet Equity expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.2%
Expected annual growth in revenue.
Earnings growth vs Low Risk Savings
Is Mainstreet Equity expected to grow at an attractive rate?
  • Unable to compare Mainstreet Equity's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Mainstreet Equity's earnings growth to the Canada market average as no estimate data is available.
  • Mainstreet Equity's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:MEQ Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:MEQ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 6.2%
North America Real Estate Industry Earnings Growth Rate Market Cap Weighted Average 21.8%
Canada Real Estate Industry Revenue Growth Rate Market Cap Weighted Average 2.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 7%
Canada Market Revenue Growth Rate Market Cap Weighted Average 3.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:MEQ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:MEQ Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 158 1
2020-09-30 151 39 2
2020-04-03
TSX:MEQ Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 142 37 58
2019-09-30 138 40 59
2019-06-30 132 41 63
2019-03-31 127 36 77
2018-12-31 121 34 75
2018-09-30 116 30 73
2018-06-30 111 30 146
2018-03-31 108 30 111
2017-12-31 106 32 98
2017-09-30 105 31 91
2017-06-30 103 31 37
2017-03-31 102 27 47

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Mainstreet Equity is high growth as no earnings estimate data is available.
  • Mainstreet Equity's revenue is expected to grow by 6.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:MEQ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Mainstreet Equity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MEQ Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30
2020-09-30
2020-04-03
TSX:MEQ Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 6.29
2019-09-30 6.41
2019-06-30 6.98
2019-03-31 8.63
2018-12-31 8.51
2018-09-30 8.23
2018-06-30 16.56
2018-03-31 12.56
2017-12-31 11.07
2017-09-30 10.25
2017-06-30 4.15
2017-03-31 5.24

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Mainstreet Equity will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Mainstreet Equity's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mainstreet Equity has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MEQ Past Performance

  How has Mainstreet Equity performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mainstreet Equity's growth in the last year to its industry (Real Estate).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mainstreet Equity's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • 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.
Earnings and Revenue History
Mainstreet Equity's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mainstreet Equity Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MEQ Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 141.70 58.42 12.20
2019-09-30 137.61 58.69 12.46
2019-06-30 132.02 62.94 12.40
2019-03-31 126.62 76.59 11.92
2018-12-31 121.21 75.13 11.24
2018-09-30 115.67 72.72 10.93
2018-06-30 111.07 146.34 10.53
2018-03-31 108.16 111.12 10.59
2017-12-31 105.88 98.07 10.64
2017-09-30 104.66 90.94 10.27
2017-06-30 103.37 36.88 10.85
2017-03-31 101.51 46.84 10.48
2016-12-31 100.74 21.96 9.83
2016-09-30 100.29 17.17 9.60
2016-06-30 100.82 36.39 8.33
2016-03-31 101.40 27.32 8.13
2015-12-31 101.11 51.63 8.61
2015-09-30 100.39 64.71 8.72
2015-06-30 98.69 32.07 9.24
2015-03-31 96.55 66.20 9.22
2014-12-31 93.59 68.11 8.81
2014-09-30 90.45 66.77 8.70
2014-06-30 87.55 73.29 8.50
2014-03-31 84.41 47.80 8.21
2013-12-31 81.35 51.97 7.83
2013-09-30 78.19 62.49 8.14
2013-06-30 74.99 15.75 8.21

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mainstreet Equity has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Mainstreet Equity used its assets less efficiently than the CA Real Estate industry average last year based on Return on Assets.
  • Mainstreet Equity has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Mainstreet Equity's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Real Estate industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mainstreet Equity has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MEQ Health

 How is Mainstreet Equity's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mainstreet Equity's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Mainstreet Equity's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mainstreet Equity Company Filings, last reported 3 months ago.

TSX:MEQ Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 805.88 1,085.34 1.69
2019-09-30 800.31 1,076.17 0.07
2019-06-30 771.11 1,082.80 2.03
2019-03-31 759.75 1,024.01 0.58
2018-12-31 755.40 1,006.47 0.83
2018-09-30 749.56 958.82 0.38
2018-06-30 716.11 951.25 24.06
2018-03-31 691.10 921.34 24.15
2017-12-31 680.28 921.75 23.52
2017-09-30 676.97 839.98 24.77
2017-06-30 570.69 834.61 41.94
2017-03-31 582.01 838.00 58.22
2016-12-31 584.28 803.48 44.71
2016-09-30 587.98 754.63 1.10
2016-06-30 535.60 705.84 1.38
2016-03-31 580.44 700.21 40.57
2015-12-31 607.53 659.09 3.21
2015-09-30 620.41 651.30 1.53
2015-06-30 549.99 671.37 17.70
2015-03-31 561.51 642.37 2.42
2014-12-31 567.64 608.19 1.77
2014-09-30 563.05 601.99 1.04
2014-06-30 523.42 600.48 1.50
2014-03-31 498.61 574.13 1.25
2013-12-31 499.66 568.11 0.08
2013-09-30 496.37 557.49 1.83
2013-06-30 450.87 556.09 1.34
  • Mainstreet Equity's level of debt (134.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (107.2% vs 134.7% today).
  • Debt is not well covered by operating cash flow (3.4%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.2x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Mainstreet Equity's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mainstreet Equity has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MEQ Dividends

 What is Mainstreet Equity's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Mainstreet Equity dividends.
If you bought CA$2,000 of Mainstreet Equity shares you are expected to receive CA$0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:MEQ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Canada Real Estate Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 1.8%
Canada Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 4.7%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.4%
Canada Bottom 25% Dividend Yield 25th Percentile 2.7%
Canada Top 25% Dividend Yield 75th Percentile 8.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:MEQ Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2021-09-30
2020-09-30
2020-04-03

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Mainstreet Equity's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Mainstreet Equity's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.4%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mainstreet Equity afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mainstreet Equity has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MEQ Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bob Dhillon
COMPENSATION CA$2,393,225
CEO Bio

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 June 24, 1997. Mr. Dhillon is responsible for the overall management and affairs of Mainstreet. He holds experience of working in real estate industry , the acquisition, repositioning and divestiture of multi-family, retail, office, land and industrial properties. Mr. Dhillon has been a Director of Canada Mortgage and Housing Corporation since February 5, 2015. He is the Honorary Consul General for Belize in Canada. Mr. Dhillon holds an M.B.A. Degree from the Richard Ivey School of Business at the University of Western Ontario.

CEO Compensation
  • Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Bob's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Mainstreet Equity management team in years:

5.3
Average Tenure
  • The average tenure for the Mainstreet Equity management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bob Dhillon

TITLE
Founder
COMPENSATION
CA$2M

Na Cui

TITLE
Chief Financial Officer
COMPENSATION
CA$197K
TENURE
3.1 yrs

Johnny C. Lam

TITLE
Chief Operating Officer
COMPENSATION
CA$873K
TENURE
12.1 yrs

Joe Amantea

TITLE
Treasurer
COMPENSATION
CA$35K

Sheena Keslick

TITLE
Vice President of Operations
COMPENSATION
CA$248K
TENURE
7.5 yrs

Luckresha Baker

TITLE
Human Resources Manager
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure of the Mainstreet Equity board of directors in years:

14.1
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.
Board of Directors

Bob Dhillon

TITLE
Founder
COMPENSATION
CA$2M
TENURE
22.8 yrs

Joe Amantea

TITLE
Treasurer
COMPENSATION
CA$35K
TENURE
20.1 yrs

John Irwin

TITLE
Independent Director
COMPENSATION
CA$40K
TENURE
13 yrs

Ron Anderson

TITLE
Independent Director
COMPENSATION
CA$40K
AGE
66
TENURE
9 yrs

Rich Grimaldi

TITLE
Independent Director
COMPENSATION
CA$35K
TENURE
15.3 yrs

K.V. Dhillon

TITLE
Director
COMPENSATION
CA$35K
TENURE
13 yrs
Who owns this company?
Recent Insider Trading
  • Mainstreet Equity individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
20. Feb 20 Sell Joseph Amantea Individual 20. Feb 20 20. Feb 20 -3,000 CA$92.00 CA$-276,000
16. Jan 20 Sell Joseph Amantea Individual 15. Jan 20 15. Jan 20 -100 CA$76.95 CA$-7,695
23. Dec 19 Sell Joseph Amantea Individual 23. Dec 19 23. Dec 19 -400 CA$79.00 CA$-31,600
11. Oct 19 Sell Joseph Amantea Individual 11. Oct 19 11. Oct 19 -200 CA$61.50 CA$-12,244
09. Sep 19 Sell Joseph Amantea Individual 09. Sep 19 09. Sep 19 -500 CA$63.00 CA$-31,490
25. Jul 19 Sell Sheena Keslick Individual 25. Jul 19 25. Jul 19 -1,100 CA$60.00 CA$-66,000
26. Jun 19 Sell Sheena Keslick Individual 24. Jun 19 24. Jun 19 -400 CA$55.60 CA$-22,240
21. Jun 19 Sell Sheena Keslick Individual 18. Jun 19 18. Jun 19 -3,000 CA$56.12 CA$-168,308
21. Jun 19 Buy Sheena Keslick Individual 18. Jun 19 18. Jun 19 1,000 CA$56.25 CA$56,250
14. Jun 19 Sell Sheena Keslick Individual 12. Jun 19 13. Jun 19 -1,500 CA$56.69 CA$-84,766
14. Jun 19 Buy Sheena Keslick Individual 12. Jun 19 12. Jun 19 1,000 CA$56.93 CA$56,826
X
Management checks
We assess Mainstreet Equity's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mainstreet Equity has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MEQ News

Simply Wall St News

What Kind Of Shareholder Owns Most Mainstreet Equity Corp. (TSE:MEQ) Stock?

Mainstreet Equity is a smaller company with a market capitalization of CA$582m, so it may still be flying under the radar of many institutional investors. … We can see that Mainstreet Equity does have institutional investors; and they hold 20% of the stock. … Insider Ownership Of Mainstreet Equity The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Calculating The Intrinsic Value Of Mainstreet Equity Corp. (TSE:MEQ)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF (CA$, Millions) CA$49.1m CA$54.1m CA$58.2m CA$61.6m CA$64.5m CA$67.0m CA$69.2m CA$71.2m CA$73.1m CA$74.9m Growth Rate Estimate Source Est @ 13.49% Est @ 10.03% Est @ 7.6% Est @ 5.91% Est @ 4.72% Est @ 3.89% Est @ 3.31% Est @ 2.9% Est @ 2.61% Est @ 2.41% Present Value (CA$, Millions) Discounted @ 13.8% CA$43.2 CA$41.7 CA$39.5 CA$36.7 CA$33.8 CA$30.9 CA$28.0 CA$25.3 CA$22.8 CA$20.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= CA$322.5m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 10-year government bond rate of 1.9%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = CA$75m × (1 + 1.9%) ÷ (13.8% – 1.9%) = CA$644m Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = CA$CA$644m ÷ ( 1 + 13.8%)10 = CA$176.79m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is CA$499.31m.

Simply Wall St -

Should You Worry About Mainstreet Equity Corp.'s (TSE:MEQ) CEO Pay Cheque?

See our latest analysis for Mainstreet Equity How Does Bob Dhillon's Compensation Compare With Similar Sized Companies? … The graphic below shows how CEO compensation at Mainstreet Equity has changed from year to year. … TSX:MEQ CEO Compensation, July 9th 2019 Is Mainstreet Equity Corp.

Simply Wall St -

Did You Miss Mainstreet Equity's (TSE:MEQ) 57% Share Price Gain?

(TSE:MEQ) shareholders have seen the share price rise 57% over three years, well in excess of the market return (13%, not including dividends). … During three years of share price growth, Mainstreet Equity achieved compound earnings per share growth of 48% per year. … The average annual share price increase of 16% is actually lower than the EPS growth.

Simply Wall St -

Should Mainstreet Equity (TSE:MEQ) Be Disappointed With Their 57% Profit?

But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

Simply Wall St -

Is Mainstreet Equity Corp. (TSE:MEQ) Potentially Undervalued?

According to my valuation model, Mainstreet Equity seems to be fairly priced at around 20% below my intrinsic value, which means if you buy Mainstreet Equity today, you’d be paying a reasonable price for it. … In addition to this, Mainstreet Equity has a low beta, which suggests its share price is less volatile than the wider market. … With revenues expected to grow by a double-digit 19% over the next couple of years, the outlook is positive for Mainstreet Equity.

Simply Wall St -

Here's How P/E Ratios Can Help Us Understand Mainstreet Equity Corp. (TSE:MEQ)

View our latest analysis for Mainstreet Equity How Do I Calculate A Price To Earnings Ratio? … The formula for price to earnings is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Mainstreet Equity: P/E of 6.58 = CA$56.79 ÷ CA$8.63 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios P/E ratios primarily reflect market expectations around earnings growth rates.

Simply Wall St -

What Kind Of Shareholder Owns Most Mainstreet Equity Corp. (TSE:MEQ) Stock?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … With a market capitalization of CA$488m, Mainstreet Equity is a small cap stock, so it might not be well known by many institutional investors. … institutions own shares in the company

Simply Wall St -

A Look At The Intrinsic Value Of Mainstreet Equity Corp. (TSE:MEQ)

by estimating the company's future cash flows and discounting them to their present value. … Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. … We're using the 2-stage growth model, which simply means we take in account two stages of company's growth

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Mainstreet Equity Corp. (TSE:MEQ)?

(TSE:MEQ), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

MEQ Company Info

Description

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.

Details
Name: Mainstreet Equity Corp.
MEQ
Exchange: TSX
Founded: 1997
CA$405,759,822
9,381,730
Website: http://www.mainst.biz
Address: Mainstreet Equity Corp.
305 – 10 Avenue SE,
Calgary,
Alberta, T2G 0W2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MEQ Common Voting Shares The Toronto Stock Exchange CA CAD 08. Dec 1998
OTCPK MEQY.F Common Voting Shares Pink Sheets LLC US USD 08. Dec 1998
Number of employees
Current staff
Staff numbers
343
Mainstreet Equity employees.
Industry
Real Estate Operating Companies
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 03:14
End of day share price update: 2020/04/02 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.