Mainstreet Equity Corp. (MEQ) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Mainstreet Equity Corp.

Melcor Developments Ltd.

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Wall Financial Corp.

Urbanfund Corp.

FirstService Corp.

Tricon Residential, Inc.

Morguard Corp.

Colliers International Group, Inc.

Park Lawn Corp.

DREAM Unlimited Corp.

Why is Mainstreet Equity Corp. ?

Strong Long Term Fundamental Strength with a 13.01% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 13.01%

With a growth in Operating Profit of 14.35%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 2 consecutive quarters
ROCE(HY) Highest at 19.75%
INVENTORY TURNOVER RATIO(HY) Highest at 7.93%
NET SALES(Q) Highest at CAD 69.67 MM

With ROE of 7.56%, it has a very attractive valuation with a 1.05 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -1.60%, its profits have risen by 751.8% ; the PEG ratio of the company is 0

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Mainstreet Equity Corp. should be less than 10%
Overall Portfolio exposure to Realty should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Realty)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Mainstreet Equity Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mainstreet Equity Corp.

-5.88%

0.41

23.45%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.02%

EBIT Growth (5y)

17.16%

EBIT to Interest (avg)

2.40

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

16.18%

Dividend Payout Ratio

0.52%

Pledged Shares

Institutional Holding

2.43%

ROCE (avg)

9.76%

ROE (avg)

4.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.90

EV to EBIT

9.05

EV to EBITDA

9.01

EV to Capital Employed

0.89

EV to Sales

5.40

PEG Ratio

0.57

Dividend Yield

ROCE (Latest)

9.85%

ROE (Latest)

4.90%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

INVENTORY TURNOVER RATIO(HY)

Highest at 12.8 times

NET SALES(Q)

Highest at CAD 70.88 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 1.54%

RAW MATERIAL COST(Y)

Fallen by -3.29% (YoY

CASH AND EQV(HY)

Highest at CAD 475.95 MM

DEBT-EQUITY RATIO (HY)

Lowest at 89.27 %

DIVIDEND PER SHARE(HY)

Highest at CAD 62.62

-7What is not working for the Company

NET PROFIT(HY)

At CAD 48.03 MM has Grown at -44.58%

INTEREST(HY)

At CAD 34.86 MM has Grown at 17.93%

Here's what is working for Mainstreet Equity Corp.

Net Sales

Highest at CAD 70.88 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Inventory Turnover Ratio

Highest at 12.8 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Cash and Eqv

Highest at CAD 475.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 89.27 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at CAD 62.62

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 1.54%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.29% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Mainstreet Equity Corp.

Net Profit

At CAD 48.03 MM has Grown at -44.58%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 34.86 MM has Grown at 17.93%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Non Operating Income

Highest at CAD 0.04 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income