Q: Good morning 5i Team
Please comment on MEQ.CA latest earnings.
Thank you.
Please comment on MEQ.CA latest earnings.
Thank you.
5i Research Answer:
MEQ reported solid results in the most recent quarter and is now trading at 1.2x times price/Book. In the 2Q, MEQ’s revenue grew 22% to $63M compared to last year's $51.7M. Funds from operation (FFO) per share grew strongly by 34% to $2.04 compared to last year's $1.52. The share count slightly went down as the company bought back shares. MEQ is a leveraged business with a long-term debt/ equity of 1.0x. MEQ consistently grew through property acquisitions over the years, and has managed to grow rental revenue and FFO per share organically while the share count remains flat to down slightly. The stock is doing well and it has adapted to higher rates very well. This was the tenth quarter of double-digit growth. Insiders own 48%.