TSE:MEQ
Mainstreet Equity Corp (MEQ-T)
Financials
Technical Analysis
Buy, Sell or Hold?
Related posts
Nervous markets await Nvidia
Apr 16, 2025, 12:00 amThis summary was created by AI, based on 13 opinions in the last 12 months.
Mainstreet Equity Corp (MEQ-T) has garnered positive reviews from various experts, who highlight its strong positioning in non-regulated rental markets, particularly in Alberta and British Columbia. The company's business model focuses on acquiring, renovating, and renting out properties, which is supported by rising rental prices and a growing population in its primary markets. Analysts note its exceptional track record of not raising equity since its IPO, which enhances its capacity for growth without diluting shareholder value. Recent financial results indicate robust revenue and cash flow growth, alongside a dividend increase, positioning MEQ-T favorably within the Canadian real estate sector as it continues to exploit opportunities arising from a shortage of affordable housing.
MEQ has been a solid performer over the years, with a 21% five-year CAGR, and an 18% 10-year annualized return. It has a strong track record of earnings expansion and beating earnings estimates. It is fairly small ($1.8B market cap), and it is also fairly illiquid. It does have certain risks such as a high leverage profile, and it operates in a cyclical rental market, but it generates steady free cash flows, has tailwinds from demand for the urban rental market, and it has delivered strong growth with little to no share dilution. We think it has many qualities of a long-term compounder, but we would be mindful of its small size, high debt profile, and exposure to a cyclical market.
Unlock Premium - Try 5i Free
Likes it here. Stock's gone quiet in terms of price, but operationally the company is doing extremely well. Last couple of quarters have been excellent. Founder-CEO still owns half the company, and he loves that structure. Strong growth in rents, very low vacancies. Now at a discount to NAV of ~$253. Sleep at night, steady eddy.
Key is that it retains most of cashflows to buy more buildings, rather then pay out in dividends the way most REITs do. Instituted a very small dividend only to appeal to those funds that have a dividend mandate.
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.
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).
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.
Unlock Premium - Try 5i Free
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)
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.
Unlock Premium - Try 5i Free
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.
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.
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)
Mainstreet Equity Corp(MEQ-T) Rating
Ranking : 5 out of 5
Bullish - Buy Signals / Votes : 11
Neutral - Hold Signals / Votes : 11
Bearish - Sell Signals / Votes : 11
Total Signals / Votes : 33
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, 33 stock analysts published opinions about MEQ-T. 11 analysts recommended to BUY the stock. 11 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?
33 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 2025-07-04, Mainstreet Equity Corp (MEQ-T) stock closed at a price of $184.5.
Apartment buildings mostly in Alberta, a few in BC. Founder is one of the most remarkable entrepreneurs John's ever met. Good assets and Alberta is thriving. Tends to be more volatile than BEI.UN, but has strong fundamentals. Perhaps some pressure from immigration reform as it's more exposed to student housing, but that would be a short-term hiccup.