# Mainstreet Equity Corp. (MEQ.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Real Estate / Real Estate Management & Development. Price C$168.71, market value C$1.6 billion.

## Valuation
- **P/E (trailing): 9.0×** (5-yr avg 7.7×, 3-yr avg 8.7×). Mainstreet Equity Corp. trades at 9.0× trailing earnings, close to its own five-year average of 7.7×. The Real Estate median in the September 2026 study was 25.2×. Forward P/E is 16.4×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.38**. A PEG of 0.38 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 5.5×**. Each dollar of revenue is priced at 5.5×.
- **Price / book: 0.8×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 11.3×**. Enterprise value is 11.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.9%** (5-yr avg 5.0%). Free cash flow equals 6.9% of the market value, above its five-year average of 5.0%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.1%**. The inverse of the P/E: 11.1% of the price is earned each year.

## Profitability
- **Gross margin: 67.6%**. Mainstreet Equity Corp. keeps 67.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 60.3%**. 60.3% of revenue is left after running the business, an exceptional level.
- **Net margin: 103.9%**. 103.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 15.9%**. 15.9% on shareholders' equity is solid.
- **Return on invested capital: 4.1%**. Return on all capital, debt included, is 4.1%: close to or below the cost of capital, so growth may not create value.
- **Return on assets: 4.3%**. Each dollar of assets produces 4.3% of profit.

## Growth
- **Revenue growth (1 yr): 10.6%** (3-yr 15.2%/yr, 5-yr 13.0%/yr). Revenue grew 10.6% over the last year, against 13.0% a year compounded over five years.
- **EPS growth (1 yr): 43.6%** (3-yr 33.7%/yr, 5-yr 33.3%/yr). Earnings per share rose 43.6%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 17.7%/yr**. Free cash flow has compounded at 17.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 1.06**. Debt is 1.06 times equity, a leveraged balance sheet, which is normal for real estate.
- **Net debt / EBITDA: 5.7×**. It would take 5.7 years of operating earnings to repay net borrowings, above the 3× level most lenders treat as comfortable.
- **Interest coverage: 2.7×**. Operating profit covers interest 2.7×, thin but manageable.
- **Current ratio: 1.13** (quick 1.13). Current assets cover the next year's liabilities 1.13 times.
- **Altman Z-score: 1.24**. A Z-score of 1.24 is in the distress zone, a signal to examine the balance sheet closely.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 0.19%** (C$0.28 per share, trailing). Mainstreet Equity Corp. yields 0.19%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 0%** (2% of free cash flow). 0% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Shareholder yield: 0.8%**. Dividends plus net buybacks return 0.8% of the market value a year.

## Price and momentum
- **Total return (1 yr): -14.7%** (YTD -7.8%, 3-mo 0.6%). The shares are down 14.7% over twelve months including dividends.
- **From 52-week high: -16.1%** (5.4% above the low). Trading 16% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 49**. An RSI of 49 is neutral.
- **Beta (1 yr): 0.35** (volatility 18%). Beta of 0.35 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MEQ.TO · Page: https://foliofundamentals.com/stocks/meq.to

Not investment advice.