TSXV:RGI

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Reco International Group

Market Cap

CA$1.2m

Last Updated

2021/06/20 22:14 UTC

Data Sources

Company Financials

Executive Summary

Reco International Group Inc., together with its subsidiaries, engages in the commercial and residential construction activities in British Columbia. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.

Share Price & News

How has Reco International Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

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

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


Market Performance


7 Day Return

0%

RGI

-2.0%

CA Construction

-2.1%

CA Market


1 Year Return

n/a

RGI

55.7%

CA Construction

33.6%

CA Market

Return vs Industry: Insufficient data to determine how RGI performed against the Canadian Construction industry.

Return vs Market: Insufficient data to determine how RGI performed against the Canadian Market.


Shareholder returns

RGIIndustryMarket
7 Day0%-2.0%-2.1%
30 Day0%-0.3%1.0%
90 Day-30.8%9.5%4.2%
1 Yearn/a58.0%55.7%38.0%33.6%
3 Year-35.7%-35.7%19.3%14.1%28.7%16.4%
5 Year350.0%350.0%64.7%49.9%59.6%35.6%

Long-Term Price Volatility Vs. Market

How volatile is Reco International Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Reco International Group undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGI (CA$0.05) is trading below our estimate of fair value (CA$0.33)

Significantly Below Fair Value: RGI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RGI is unprofitable, so we can't compare its PE Ratio to the Canadian Construction industry average.

PE vs Market: RGI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RGI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RGI has negative assets, so we can't compare its PB Ratio to the CA Construction industry average.


Future Growth

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

22.4%

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 Reco 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.


Past Performance

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

-40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGI is currently unprofitable.

Growing Profit Margin: RGI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RGI is unprofitable, and losses have increased over the past 5 years at a rate of 40% per year.

Accelerating Growth: Unable to compare RGI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RGI is unprofitable, making it difficult to compare its past year earnings growth to the Construction industry (20.7%).


Return on Equity

High ROE: RGI's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Reco International Group's financial position?


Financial Position Analysis

Short Term Liabilities: RGI has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RGI has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RGI has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RGI's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable RGI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: RGI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 4.9% per year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate RGI'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 RGI's dividends per share have been stable in the past.

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RGI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

15.8yrs

Average board tenure


CEO

Hugh Zhen (62 yo)

16.83yrs

Tenure

CA$236,190

Compensation

Mr. Yu Guang Zhen, also known as Hugh, has been Executive Chairman, Chief Executive Officer and President of Reco International Group Inc. since August 4, 2004. In 1989 he started a new company Yin Furnitu...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Hugh's total compensation is reasonable compared to companies of similar size in the Canadian market.

Compensation vs Earnings: Hugh's compensation has increased whilst the company is unprofitable.


Board Members

Experienced Board: RGI's board of directors are seasoned and experienced ( 15.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Reco International Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Reco International Group Inc.
  • Ticker: RGI
  • Exchange: TSXV
  • Founded: 1999
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: CA$1.154m
  • Shares outstanding: 25.64m
  • Website: https://recodesignbuild.com

Location

  • Reco International Group Inc.
  • 2051 Viceroy Place
  • Suite 100
  • Richmond
  • British Columbia
  • V6V 1Y9
  • Canada

Listings


Biography

Reco International Group Inc., together with its subsidiaries, engages in the commercial and residential construction activities in British Columbia. The company’s services include project management, pre-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 22:14
End of Day Share Price2021/05/17 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.