NasdaqCM:REKR

Stock Analysis Report

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Executive Summary

Rekor Systems, Inc., through its subsidiaries, provides vehicle identification and management systems based on artificial intelligence in the United States, Canada, and internationally. More Details


Snowflake Analysis

Limited growth with weak fundamentals.


Similar Companies

Share Price & News

How has Rekor Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: REKR's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-13.6%

REKR

-2.7%

US Professional Services

-2.4%

US Market


1 Year Return

185.0%

REKR

15.4%

US Professional Services

18.2%

US Market

Return vs Industry: REKR exceeded the US Professional Services industry which returned 16.4% over the past year.

Return vs Market: REKR exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

REKRIndustryMarket
7 Day-13.6%-2.7%-2.4%
30 Day-26.5%2.8%4.2%
90 Day44.3%5.2%6.3%
1 Year185.0%185.0%16.2%15.4%20.9%18.2%
3 Year14.0%14.0%52.1%47.4%41.2%31.8%
5 Yearn/a90.3%80.2%84.8%63.9%

Price Volatility Vs. Market

How volatile is Rekor Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Rekor Systems undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Rekor Systems is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Rekor Systems has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Rekor Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

93.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: REKR's revenue (46.2% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: REKR's revenue (46.2% per year) 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 REKR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rekor Systems performed over the past 5 years?

-57.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REKR is currently unprofitable.

Growing Profit Margin: REKR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: REKR is unprofitable, and losses have increased over the past 5 years at a rate of 57.9% per year.

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

Earnings vs Industry: REKR is unprofitable, making it difficult to compare its past year earnings growth to the Professional Services industry (-1.7%).


Return on Equity

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


Next Steps

Financial Health

How is Rekor Systems's financial position?


Financial Position Analysis

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

Long Term Liabilities: REKR 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: REKR has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: REKR'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: REKR has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: REKR has less than a year of cash runway if free cash flow continues to reduce at historical rates of 69.7% each year


Next Steps

Dividend

What is Rekor Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if REKR'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 REKR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Robert Berman (59 yo)

4.58yrs

Tenure

US$518,004

Compensation

Mr. Robert Alan Berman has been Chief Executive Officer of Rekor Systems, Inc. (formerly known as Novume Solutions, Inc.) since March 16, 2016 and has been its President since October 29, 2018 and has been ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD518.00K) is below average for companies of similar size in the US market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Berman
Executive Chairman4.58yrsUS$518.00k18.43%
$ 34.6m
Eyal Hen
CFO, Principal Financial & Accounting Officer1.42yrsUS$350.20k0%
$ 0
Riaz Latifullah
Executive Vice President of Corporate Development3.17yrsUS$317.95k0%
$ 0
Rodney Hillman
Chief Operating Officer1.42yrsno data0.046%
$ 86.8k
Christopher Kadoch
Chief Technology Officer0.67yrno datano data
Mathew Hill
Chief Science Officer1.92yrsno data4.82%
$ 9.0m
Claud V. Eley
Outside General Counsel1.42yrsno datano data
Charles Degliomini
Executive Vice President of Government Relations & Corporate Communications1.42yrsno datano data
Susan Crandall
Chief Marketing Officer0.58yrno datano data
Scott Rutherford
Chief Innovation Officer0.75yrno datano data
Greg McCarthy
Chief Executive Officer of AOC Key Solutions Inc4.75yrsUS$288.56kno data
Kevin Berrigan
SVP & CFO of AOC Key Solutionsno dataUS$251.29kno data

1.4yrs

Average Tenure

58yo

Average Age

Experienced Management: REKR's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Robert Berman
Executive Chairman4.58yrsUS$518.00k18.43%
$ 34.6m
David Hanlon
Independent Director1.92yrsUS$51.22k0%
$ 0
Paul de Bary
Independent Lead Director2.92yrsUS$103.28k0.030%
$ 57.0k
Steven Croxton
Independent Director1.33yrsUS$62.88k0%
$ 0
Christine Harada
Independent Director3.17yrsUS$63.72k0%
$ 0
Richard Nathan
Director4.58yrsUS$30.00k4.84%
$ 9.1m
Glenn Goord
Independent Director4.58yrsUS$58.47k0.24%
$ 456.0k

2.9yrs

Average Tenure

68yo

Average Age

Experienced Board: REKR's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: REKR insiders have bought and sold the same number of shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 62.3%.


Top Shareholders

Company Information

Rekor Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Rekor Systems, Inc.
  • Ticker: REKR
  • Exchange: NasdaqCM
  • Founded: 2017
  • Industry: Research and Consulting Services
  • Sector: Commercial Services
  • Market Cap: US$187.488m
  • Shares outstanding: 32.89m
  • Website: https://www.rekorsystems.com

Number of Employees


Location

  • Rekor Systems, Inc.
  • 7172 Columbia Gateway Drive
  • Suite 400
  • Columbia
  • Maryland
  • 21046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REKR.POTCPK (Pink Sheets LLC)CUM CNV PFD AUSUSDAug 2017
REKRNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDAug 2017
38EDB (Deutsche Boerse AG)YesNew Common StockDEEURAug 2017

Biography

Rekor Systems, Inc., through its subsidiaries, provides vehicle identification and management systems based on artificial intelligence in the United States, Canada, and internationally. The company operate ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 01:10
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.