TSXV:RGI

Stock Analysis Report

Reco International Group

Executive Summary

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

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

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


Market Performance


7 Day Return

0%

RGI

1.3%

CA Construction

-0.2%

CA Market


1 Year Return

n/a

RGI

-20.1%

CA Construction

1.5%

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%1.3%-0.2%
30 Day0%-3.5%-3.5%
90 Day16.7%-6.3%-1.8%
1 Yearn/a-18.6%-20.1%5.1%1.5%
3 Yearn/a-7.9%-13.8%13.3%3.2%
5 Year133.3%133.3%9.6%-3.1%25.2%7.2%

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

Valuation

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

4.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RGI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RGI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RGI is unprofitable, so we can't compare its PE Ratio to the 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 is overvalued based on its PB Ratio (4.3x) compared to the CA Construction industry average (2.1x).


Next Steps

Future Growth

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

61.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RGI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RGI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if RGI's revenue is forecast to grow faster than the Canadian market.

High Growth Revenue: Insufficient data to determine if RGI's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RGI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

40.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RGI is unprofitable, but has reduced losses over the past 5 years at a rate of 40.2% 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 (5.4%).


Return on Equity

High ROE: RGI has a negative Return on Equity (-144.77%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: RGI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RGI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Reco International Group's financial position?


Financial Position Analysis

Short Term Liabilities: RGI's short term assets (CA$667.2K) do not cover its short term liabilities (CA$740.3K)

Long Term Liabilities: RGI has no long term liabilities


Debt to Equity History and Analysis

Debt Level: RGI's debt to equity ratio (273.1%) is considered high

Reducing Debt: RGI's debt to equity ratio has reduced from 5024.9% to 273.1% over the past 5 years.


Balance Sheet

Inventory Level: RGI has a low level of unsold assets or inventory.

Debt Coverage by Assets: RGI's debt is covered by short term assets (assets are 1.166430x debt).


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: Insufficient data to determine if RGI has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if RGI has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%6.0%industryaverage1.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of Reco International Group's salary, the management and board of directors tenure and is there insider trading?

14.1yrs

Average board tenure


CEO

Hugh Zhen 0

15.2yrs

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. Mr. Zhen has been President of Reco Decorati ...


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 Age and Tenure

14.1yrs

Average Tenure

Experienced Board: RGI's board of directors are seasoned and experienced ( 14.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Quang Quin

    CFO & Executive Director

    • Tenure: 16.2yrs
    • Compensation: CA$179.64k
  • Hugh Zhen

    Executive Chairman

    • Tenure: 15.2yrs
    • Compensation: CA$236.19k

Board Members

  • Quang Quin

    CFO & Executive Director

    • Tenure: 16.2yrs
    • Compensation: CA$179.64k
  • Hugh Zhen

    Executive Chairman

    • Tenure: 15.2yrs
    • Compensation: CA$236.19k
  • Lyn Jones

    Director

    • Tenure: 13.1yrs
  • David Malicki

    Director

    • Tenure: 11.8yrs

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$897.247k
  • Shares outstanding: 25.64m
  • Website: https://www.recodeco.com

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGITSXV (TSX Venture Exchange)YesCommon SharesCACADDec 2003

Biography

Reco International Group Inc., together with its subsidiaries, engages in the commercial and residential construction activities in British Columbia. It is also involved in the millwork operations. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:58
End of Day Share Price2019/10/02 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.