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Mainstreet Equity Corp (MEQ-T) is a real estate corporation focused on managing small and mid-size apartment buildings in Western Canada. The company has experienced substantial growth in its number of apartments, units rented, and rental rates. It is led by an excellent CEO who owns half the business. The stock is well-regarded for its disciplined approach to portfolio growth and increasing net asset value. Analysts are optimistic about its potential for long-term compounding and consistent revenue growth. MEQ is considered a well-run, under-followed stock with strong potential for the future.
Really likes it, though illiquid. Adept at growing portfolio base and NAV, despite not having to issue any equity, the holy grail of real estate. Really likes Canadian western apartment markets, especially where no rent control. Rents go higher, and so NAV goes higher.
Thinks highly of CEO. Great example of building a great business by investing in accretive acquisitions instead of paying out a distribution. Discount to NAV. Migration into Alberta is a great story. No dividend.
MEQ operates as a real estate corporation focusing on managing residential rental apartments and is now trading at 27.6x times' Forward P/E, but only at 1.0x Book value. In the last five years, MEQ’s revenue growth has been quite consistent, around 12% on average. Like other real estate companies, the balance sheet is leveraged, with net debt of $1.5B. The net debt/EBITDA is currently around 14.5x. MEQ reinvested heavily into acquiring new properties. As a result, the company has had no dividend payments and limited shares repurchase over the last few years.
We think MEQ has the potential to be a compounder, trading at 1.0x Book value is also an attractive valuation, but the leverage levels need to be monitored carefully, as the debt is quite high. We would be comfortable with this name for a three-year+ timeframe given its cheap valuation and consistent revenue growth.
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Very well run with a long track record. Is one of the best compounding stocks in Canada that nobody knows. It returns 20% annually for the last 20 years. They played Covid perfectly by buying companies and locking in their debt at 2% over 10 years. Are well positioned given Canada's housing shortages with low vacancies and more immigrants coming.
(Analysts’ price target is $163.33)Attractive long-term assets. Calgary-Edmonton based. Active in their portfolios. Looks extremely good from an ROC metric. Pay attention to the apartment sector, it's a good one right now.
Likes it. Corporation, not a REIT, so it's able to retain cashflow instead of paying a distribution. Has grown well without issuing any equity. May have traded off because it reached NAV. Solid operator. Keep holding.
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
In the last year, 10 stock analysts published opinions about MEQ-T. 9 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.
Mainstreet Equity Corp was recommended as a Top Pick by on . Read the latest stock experts ratings for Mainstreet Equity Corp.
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.
10 stock analysts on Stockchase covered Mainstreet Equity Corp In the last year. It is a trending stock that is worth watching.
On 2024-04-25, Mainstreet Equity Corp (MEQ-T) stock closed at a price of $178.77.
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.