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REKO

Reko International Group TSXV:REKO Stock Report

Last Price

CA$4.65

Market Cap

CA$26.7m

7D

-2.3%

1Y

-1.9%

Updated

28 Sep, 2022

Data

Company Financials
REKO fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance3/6
Financial Health4/6
Dividends0/6

REKO Stock Overview

Reko International Group Inc. designs and manufactures various engineered products and services for original equipment manufacturers and their tier suppliers in Canada and the United States.

Reko International Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Reko International Group
Historical stock prices
Current Share PriceCA$4.65
52 Week HighCA$5.38
52 Week LowCA$4.14
Beta1.24
1 Month Change1.09%
3 Month Change0%
1 Year Change-1.90%
3 Year Change32.86%
5 Year Change23.34%
Change since IPO-31.11%

Recent News & Updates

Jun 11
Is Now The Time To Put Reko International Group (CVE:REKO) On Your Watchlist?

Is Now The Time To Put Reko International Group (CVE:REKO) On Your Watchlist?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

May 13
Reko International Group (CVE:REKO) Has A Pretty Healthy Balance Sheet

Reko International Group (CVE:REKO) Has A Pretty Healthy Balance Sheet

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

Shareholder Returns

REKOCA MachineryCA Market
7D-2.3%-2.8%-2.9%
1Y-1.9%-39.5%-5.6%

Return vs Industry: REKO exceeded the Canadian Machinery industry which returned -40.6% over the past year.

Return vs Market: REKO exceeded the Canadian Market which returned -7.3% over the past year.

Price Volatility

Is REKO's price volatile compared to industry and market?
REKO volatility
REKO Average Weekly Movementn/a
Machinery Industry Average Movement9.4%
Market Average Movement9.8%
10% most volatile stocks in CA Market18.2%
10% least volatile stocks in CA Market3.8%

Stable Share Price: Insufficient data to determine REKO's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine REKO's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
1976n/aDiane Rekohttps://www.rekointl.com

Reko International Group Inc. designs and manufactures various engineered products and services for original equipment manufacturers and their tier suppliers in Canada and the United States. The company engages in the design and construction of specialty machines and lean cell factory automation solutions, and robotics integration; high precision custom machining of critical components and assemblies; and plastic injection and compression acoustic molds. It also provides specialty machines for gas tank assembly lines, material handling applications, and work cell solutions, as well as compression molds and plastic injection molds.

Reko International Group Fundamentals Summary

How do Reko International Group's earnings and revenue compare to its market cap?
REKO fundamental statistics
Market CapCA$26.67m
Earnings (TTM)CA$1.95m
Revenue (TTM)CA$47.84m

13.7x

P/E Ratio

0.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
REKO income statement (TTM)
RevenueCA$47.84m
Cost of RevenueCA$37.58m
Gross ProfitCA$10.26m
Other ExpensesCA$8.31m
EarningsCA$1.95m

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)0.34
Gross Margin21.45%
Net Profit Margin4.07%
Debt/Equity Ratio19.1%

How did REKO perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is REKO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REKO?

Other financial metrics that can be useful for relative valuation.

REKO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA7x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does REKO's PE Ratio compare to its peers?

REKO PE Ratio vs Peers
The above table shows the PE ratio for REKO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27x
APL Appulse
15.1xn/aCA$3.6m
CNO California Nanotechnologies
7.6xn/aCA$2.7m
HEO H2O Innovation
38.1x30.9%CA$194.4m
SIS Savaria
47.2x48.6%CA$904.8m
REKO Reko International Group
13.7xn/aCA$26.7m

Price-To-Earnings vs Peers: REKO is good value based on its Price-To-Earnings Ratio (13.7x) compared to the peer average (27x).


Price to Earnings Ratio vs Industry

How does REKO's PE Ratio compare vs other companies in the North American Machinery Industry?

Price-To-Earnings vs Industry: REKO is good value based on its Price-To-Earnings Ratio (13.7x) compared to the North American Machinery industry average (18.1x)


Price to Earnings Ratio vs Fair Ratio

What is REKO's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REKO PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.7x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate REKO's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of REKO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate REKO's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate REKO's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Reko International Group forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


48.1%

Forecasted Capital Goods industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Reko International Group has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Discover growth companies

  • Examine Reko International Group's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  • Reko International Group competitive advantages and company strategy can generally be found in its financial reports archived here.

Past Performance

How has Reko International Group performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: REKO has a large one-off gain of CA$2.5M impacting its April 30 2022 financial results.

Growing Profit Margin: REKO's current net profit margins (4.1%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: REKO's earnings have declined by 22.4% per year over the past 5 years.

Accelerating Growth: REKO's earnings growth over the past year (122.7%) exceeds its 5-year average (-22.4% per year).

Earnings vs Industry: REKO earnings growth over the past year (122.7%) exceeded the Machinery industry -7.3%.


Return on Equity

High ROE: REKO's Return on Equity (4.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Reko International Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: REKO's short term assets (CA$35.9M) exceed its short term liabilities (CA$15.0M).

Long Term Liabilities: REKO's short term assets (CA$35.9M) exceed its long term liabilities (CA$5.5M).


Debt to Equity History and Analysis

Debt Level: REKO's net debt to equity ratio (4.5%) is considered satisfactory.

Reducing Debt: REKO's debt to equity ratio has increased from 13.9% to 19.1% over the past 5 years.

Debt Coverage: REKO's debt is not well covered by operating cash flow (12.4%).

Interest Coverage: REKO's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

What is Reko International Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Reko International Group Dividend Yield vs Market
How does Reko International Group dividend yield compare to the market?
SegmentDividend Yield
Company (Reko International Group)n/a
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.0%
Industry Average (Machinery)2.0%
Analyst forecast in 3 Years (Reko International Group)n/a

Notable Dividend: Unable to evaluate REKO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate REKO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if REKO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if REKO's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as REKO has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

26.7yrs

Average board tenure


CEO

Diane Reko

38.67yrs

Tenure

CA$237,170

Compensation

Ms. Diane Reko, B.Comm has been the Chairperson and Chief Executive Officer of Reko International Group Inc. since December 23, 2007 and has also been its Secretary and Treasurer since November 21, 1984. M...


CEO Compensation Analysis

Diane Reko's Compensation vs Reko International Group Earnings
How has Diane Reko's remuneration changed compared to Reko International Group's earnings?
DateTotal Comp.SalaryCompany Earnings
Apr 30 2022n/an/a

CA$2m

Jan 31 2022n/an/a

CA$3m

Oct 31 2021n/an/a

CA$2m

Jul 31 2021CA$237kCA$225k

CA$864k

Apr 30 2021n/an/a

CA$875k

Jan 31 2021n/an/a

CA$138k

Oct 31 2020n/an/a

-CA$273k

Jul 31 2020CA$239kCA$229k

CA$763k

Apr 30 2020n/an/a

CA$786k

Jan 31 2020n/an/a

CA$1m

Oct 31 2019n/an/a

CA$2m

Jul 31 2019CA$234kCA$225k

CA$2m

Apr 30 2019n/an/a

CA$2m

Jan 31 2019n/an/a

CA$2m

Oct 31 2018n/an/a

CA$2m

Jul 31 2018CA$227kCA$225k

CA$2m

Apr 30 2018n/an/a

CA$2m

Jan 31 2018n/an/a

CA$2m

Oct 31 2017n/an/a

CA$2m

Jul 31 2017CA$227kCA$225k

CA$3m

Apr 30 2017n/an/a

CA$6m

Jan 31 2017n/an/a

CA$7m

Oct 31 2016n/an/a

CA$7m

Jul 31 2016CA$283kCA$225k

CA$8m

Compensation vs Market: Diane's total compensation ($USD173.24K) is about average for companies of similar size in the Canadian market ($USD177.09K).

Compensation vs Earnings: Diane's compensation has been consistent with company performance over the past year.


Board Members

Experienced Board: REKO's board of directors are seasoned and experienced ( 26.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSXV:REKO Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
28 Jun 22BuyCA$9,300Roy VerstraeteIndividual2,000CA$4.65
31 Jan 22SellCA$5,555Christine FerrariIndividual1,100CA$5.05
20 Jan 22SellCA$14,056John SartzIndividual2,800CA$5.02
17 Jan 22SellCA$30,000Caterina LongoIndividual6,000CA$5.00
05 Jan 22SellCA$9,690John SartzIndividual1,900CA$5.10
14 Dec 21SellCA$52,981Ernest StajduharIndividual11,000CA$4.86
05 Nov 21SellCA$12,870Paul RauchIndividual2,600CA$4.95

Ownership Breakdown

What is the ownership structure of REKO?
Owner TypeNumber of SharesOwnership Percentage
General Public1,927,36633.6%
Individual Insiders3,808,38466.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 10 shareholders own 66.4% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
64.3%
Diane Reko
3,688,024CA$17.1m0%no data
0.98%
John Sartz
56,400CA$262.3k0%no data
0.59%
Andrew Szonyi
33,560CA$156.1k42.44%no data
0.17%
Chad Willson
10,000CA$46.5k0%no data
0.1%
Dave Romanello
6,000CA$27.9k0%no data
0.087%
Peter Gobel
5,000CA$23.3k0%no data
0.061%
Lauren Brummell-Beaudoin
3,500CA$16.3k0%no data
0.044%
Gennaro Pignanelli
2,500CA$11.6k0%no data
0.035%
Roy Verstraete
2,000CA$9.3k0%no data
0.024%
Christine Ferrari
1,400CA$6.5k0%no data

Company Information

Reko International Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Reko International Group Inc.
  • Ticker: REKO
  • Exchange: TSXV
  • Founded: 1976
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: CA$26.671m
  • Shares outstanding: 5.74m
  • Website: https://www.rekointl.com

Location

  • Reko International Group Inc.
  • 469 Silver Creek Industrial Drive
  • Lakeshore
  • Ontario
  • N8N 4W2
  • Canada


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REKOTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 1994
RKIG.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 1994

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/28 00:00
End of Day Share Price2022/09/28 00:00
Earnings2022/04/30
Annual Earnings2021/07/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.