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Investor Insights

This summary was created by AI, based on 15 opinions in the last 12 months.

Mainstreet Equity Corp (MEQ-T) is widely regarded by experts as an excellent, founder-led company with significant growth prospects in the affordable housing sector of Canada. The company's solid performance, including rising rental revenues and cash flows, indicates strong operational execution amidst a growing population and decreasing vacancy rates, particularly in Western Canada. Analysts appreciate its ability to maintain an impressive track record of not raising equity for over two decades while continuously expanding its portfolio. There is a consensus that as rent prices rise, the company stands to benefit significantly, particularly with the absence of rent control in many regions. While the stock has seen substantial growth recently, some experts caution about its high valuation metrics, suggesting a potential wait for a more favorable entry point.

Consensus
Positive
Valuation
Fair Value
Similar
Crown, CWD
BUY ON WEAKNESS

Great little company. In certain markets, huge market share. Its markets are non-regulated, so it's easier to capture upside than in rent-controlled markets. Model is buy-fix-rent-repeat. Alberta is more affordable with higher population growth than national average.

TOP PICK

Excellent company that is founder led (lots of skin in the game). Expecting shortage of affordable housing to be very good for business. Ability o acquire new properties, and fix them up is very good. Rising population without rent control is good for profit margins. Zero equity raises since original IPO is incredible track record. 

HOLD

Top of his list of regrets, perhaps the best-performing real estate stock in NA over the past 5 years. Incredible returns to shareholders and growth. Likes the business and management, though would favour a deeper management bench. Moral supporter of the company, but not an owner (kept thinking he'd get it cheaper, but never did).

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Revenue was $67.6M slightly better than estimates.  Rental revenue rose 16%. Cash flow per share rose 19% to $2.47, and ahead of estimates of $2.39. Net operating income rose 11%. We would consider it a solid quarter. Commentary was good, with the company talking about 'major opportunities' in the coming year. The dividend was raised last month. We would be comfortable at $200. 
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BUY

Future looks good. Never raises equity. Over half of the portfolio is in Alberta, with another big chunk in BC. Undervalued. Alberta is seeing record migration from elsewhere in Canada. Discount to NAV, likes the sector.

TOP PICK

In a sweet spot right now. Rents are going up quite a bit (12% YOY), as there's no rent control in many western Canadian provinces, yet vacancies are down substantially. Stellar results last quarter. Sold off with rest of REITs, yet it's not a REIT. 

Typically trades at a premium to NAV, but today it's at a discount. Extremely well run, haven't raised a dollar of equity in 20 years. Compounded annually at 18% for 20 years. Yield is 1%.

(Analysts’ price target is $226.00)

BUY ON WEAKNESS

Absolutely loves. Checks all the boxes on business economics, balance sheet, management team, and growth. The only miss is the rich valuation at 20x FFO. First-class compounder. Wait for a pullback to ~18-18.5x FFO.

BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $12.18 beat estimates of $2.4 and sales of $66.9M missed estimates of $69.27M. It raised its dividend by 45% to $0.04 per share, and net operating income rose 24% in the quarter. Rental revenue from operations rose 20%, and the vacancy rate fell to 3.4% from 4.3% last year. While the results were strong, and growth remains at high levels, there was an analyst downgrade due to its lofty valuations (24X forward earnings). Its valuation has mostly remained flat over the past couple of years, but the company has executed well on growth and profitability. Given its continued execution, we would be comfortable with an entry point around $195 to $200. 
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PAST TOP PICK
(A Top Pick Jul 04/23, Up 48%)

Excellent company with strong prospects. Will continue to own. Founder led, with lots of skin in the game. Demand of housing expected to keep growing. Does not lose any sleep over company. Mid-market apartments also continue to grow. No rent control in Western Canada - helps increase profits. Lots of "blue sky" to keep growing. 

PAST TOP PICK
(A Top Pick Jul 04/23, Up 39%)

Core holding in portfolio. Very strong asset base. Sharp management with founder who has lots of skin in the game (~50%). Excellent quarter with higher revenue and cash flow. New M&A - bought ~600 apartment as sellers wanted to sell before capital gains tax . Expecting 20,000 apartments by the end of the year. One of the best compounding companies in Canada. 

TOP PICK

Has pulled back to a fair valuation for a phenomenal compounder. It's not a REIT, but a real estate corporation. So, they retain their capital to do deals. (REITs don't retain capital, so are stuck when there's a downturn.) MEQ buys smaller mid-market apartments, competing with mom-and-pop operators, not REITs. MEQ is counter-cyclical, and pays strong returns on time.

(Analysts’ price target is $205.00)
BUY

What's great is the growth without having to raise equity. Corporation, not a REIT, so it can hold onto cashflow to reinvest. Whereas REITs have to pay it all out. Still upside. Generating superior income from its current cycle of increasing rents.

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This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 31/23, Up 29.8%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with MEQ has triggered its stop at $175.  To remain disciplined, we recommend covering the position at this time.  When combined with our previous recommendations, this will result in a net investment gain of 28%.  

PAST TOP PICK
(A Top Pick Jul 04/23, Up 33%)

It is under-followed since it hasn't raised money in over 20 years. It buys and manages small and mid-size apartment buildings in Western Canada. Its number of apartments has grown substantially and continues to grow. It has a record high number of units rented as well as record high rents. The CEO is excellent and owns half the business.

premium

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Oct 31/23, Up 37.7%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with MEQ is progressing well.  To remain disciplined, we recommend trailing up the stop (from $155) to $175 at this time.

Showing 1 to 15 of 101 entries

Mainstreet Equity Corp(MEQ-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 11

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 12

Stockchase rating for Mainstreet Equity Corp is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Mainstreet Equity Corp(MEQ-T) Frequently Asked Questions

What is Mainstreet Equity Corp stock symbol?

Mainstreet Equity Corp is a Canadian stock, trading under the symbol MEQ-T on the Toronto Stock Exchange (MEQ-CT). It is usually referred to as TSX:MEQ or MEQ-T

Is Mainstreet Equity Corp a buy or a sell?

In the last year, 12 stock analysts published opinions about MEQ-T. 11 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Mainstreet Equity Corp.

Is Mainstreet Equity Corp a good investment or a top pick?

Mainstreet Equity Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Mainstreet Equity Corp.

Why is Mainstreet Equity Corp stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Mainstreet Equity Corp worth watching?

12 stock analysts on Stockchase covered Mainstreet Equity Corp In the last year. It is a trending stock that is worth watching.

What is Mainstreet Equity Corp stock price?

On 2025-04-01, Mainstreet Equity Corp (MEQ-T) stock closed at a price of $190.95.