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

Melcor Developments Ltd.

Halmont Properties Corp.

Urbanfund Corp.

Tricon Residential, Inc.

FirstService Corp.

Mainstreet Equity Corp.

Morguard Corp.

DREAM Unlimited Corp.

Colliers International Group, Inc.

Wall Financial Corp.

Park Lawn Corp.

Why is Mainstreet Equity Corp. ?

Strong Long Term Fundamental Strength with a 13.05% CAGR growth in Net Sales

Healthy long term growth as Net Sales has grown by an annual rate of 13.05%

Flat results in Mar 26

INTEREST(9M) At CAD 51.85 MM has Grown at 13.48%
ROCE(HY) Lowest at 10.69%
NET PROFIT(Q) Lowest at CAD 0.71 MM

With ROE of 3.86%, it has a attractive valuation with a 0.85 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 -11.08%, its profits have fallen by -0.5%

Below par performance in long term as well as near term

Along with generating -11.08% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

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.

-11.08%

-0.09

17.72%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.05%

EBIT Growth (5y)

17.03%

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

0.85

EV to EBIT

8.36

EV to EBITDA

8.33

EV to Capital Employed

0.84

EV to Sales

5.01

PEG Ratio

Dividend Yield

ROCE (Latest)

10.00%

ROE (Latest)

3.86%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

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

8What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 102.62 MM

NET SALES(Q)

Highest at CAD 72.24 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 559.44%

RAW MATERIAL COST(Y)

Fallen by -3.41% (YoY

DIVIDEND PER SHARE(HY)

Highest at CAD 79.63

-16What is not working for the Company

INTEREST(9M)

At CAD 51.85 MM has Grown at 13.48%

ROCE(HY)

Lowest at 10.69%

NET PROFIT(Q)

Lowest at CAD 0.71 MM

EPS(Q)

Lowest at CAD 0.01

Here's what is working for Mainstreet Equity Corp.

Operating Cash Flow

Highest at CAD 102.62 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 72.24 MM and Grown

In each period in the last five periods

MOJO Watch

Near term sales trend is very positive

Net Sales (CAD MM)

Dividend per share

Highest at CAD 79.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 559.44%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -3.41% (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 0.71 MM has Fallen at -96.48%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Interest

At CAD 51.85 MM has Grown at 13.48%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Profit

Lowest at CAD 0.71 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Non Operating Income

Highest at CAD 0.23 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income