Mainstreet Equity Corp. Fundamental Analysis (TSX: MEQ.TO)
Mainstreet Equity Corp. Fundamental Analysis (TSX: MEQ.TO)
Mainstreet Equity Corp. (TSX: MEQ.TO) shows strong financial fundamentals with a PE ratio of 9.04, profit margin of 60.99%, and ROE of 9.49%. The company generates $0.3B in annual revenue with strong year-over-year growth of 10.61%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 63.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MEQ.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMEQ.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMEQ.TO trades at attractive valuation levels.
Growth Score
ExcellentMEQ.TO delivers strong and consistent growth momentum.
Financial Health Score
ModerateMEQ.TO shows balanced financial health with some risks.
Profitability Score
ModerateMEQ.TO maintains healthy but balanced margins.
Key Financial Metrics
Is MEQ.TO Expensive or Cheap?
P/E Ratio
MEQ.TO trades at 9.04 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MEQ.TO's PEG of -0.21 indicates potential undervaluation.
Price to Book
The market values Mainstreet Equity Corp. at 0.84 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.74 times EBITDA. This is generally considered low.
How Well Does MEQ.TO Make Money?
Net Profit Margin
For every $100 in sales, Mainstreet Equity Corp. keeps $60.99 as profit after all expenses.
Operating Margin
Core operations generate 60.26 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.49 in profit for every $100 of shareholder equity.
ROA
Mainstreet Equity Corp. generates $4.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Mainstreet Equity Corp. generates strong operating cash flow of $109.07M, reflecting robust business health.
Free Cash Flow
Mainstreet Equity Corp. generates strong free cash flow of $108.68M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.70 in free cash annually.
FCF Yield
MEQ.TO converts 6.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
9.04
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.21
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.84
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.51
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.65
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.09
vs 25 benchmark
ROA
Return on assets percentage
0.04
vs 25 benchmark
ROCE
Return on capital employed
0.05
vs 25 benchmark
How MEQ.TO Stacks Against Its Sector Peers
| Metric | MEQ.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 9.04 | 25.81 | Better (Cheaper) |
| ROE | 9.49% | 803.00% | Weak |
| Net Margin | 60.99% | 2705.00% | Weak |
| Debt/Equity | 0.96 | -37.42 (disorted) | Distorted |
| Current Ratio | 0.65 | 39.56 | Weak Liquidity |
| ROA | 4.32% | 276.00% | Weak |
MEQ.TO outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Mainstreet Equity Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.44%
Industry Style: Income, Inflation Hedge, REIT
High GrowthEPS CAGR
320.87%
Industry Style: Income, Inflation Hedge, REIT
High GrowthFCF CAGR
143.60%
Industry Style: Income, Inflation Hedge, REIT
High Growth