NasdaqCM:REKR

Stock Analysis Report

Executive Summary

Rekor Systems, Inc., through its subsidiary, Rekor Recognition Systems, Inc., provides artificial intelligence and machine-learning enabled automated license plate recognition (ALPR) systems.

Snowflake

Fundamentals

Limited growth with worrying balance sheet.


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

1.3%

REKR

0.6%

US Professional Services

0.4%

US Market


1 Year Return

220.0%

REKR

19.0%

US Professional Services

13.1%

US Market

Return vs Industry: REKR exceeded the US Professional Services industry which returned 19% over the past year.

Return vs Market: REKR exceeded the US Market which returned 13.1% over the past year.


Shareholder returns

REKRIndustryMarket
7 Day1.3%0.6%0.4%
30 Day6.7%-2.3%4.0%
90 Day-21.1%-1.3%7.4%
1 Year220.0%220.0%20.1%19.0%15.6%13.1%
3 Yearn/a52.4%47.4%48.2%38.6%
5 Yearn/a76.2%66.8%62.6%44.6%

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?

35.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if REKR's forecast earnings growth is above the savings rate (2.7%).

Earnings vs Market: Insufficient data to determine if REKR's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: REKR's revenue (35.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: REKR's revenue (35.2% 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?

-63.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: REKR has large one-off items impacting its financial results.

Growing Profit Margin: REKR's current net profit margins (-23.6%) are lower than last year (-21.4%).


Past Earnings Growth Analysis

Earnings Trend: REKR is unprofitable, and losses have increased over the past 5 years at a rate of -63.4% 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 (23.8%).


Return on Equity

High ROE: REKR has a negative Return on Equity (-571.06%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rekor Systems's financial position?


Financial Position Analysis

Short Term Liabilities: REKR's short term assets ($11.5M) exceeds its short term liabilities ($9.1M)

Long Term Liabilities: REKR's short term assets (11.5M) do not cover its long term liabilities (21.2M)


Debt to Equity History and Analysis

Debt Level: REKR's debt to equity ratio (1238.8%) is considered high

Reducing Debt: Insufficient data to determine if REKR's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: REKR's debt is not covered by short term assets (assets are 0.5x 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: 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 -78.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

What is the CEO of Rekor Systems's salary, the management and board of directors tenure and is there insider trading?

0.8yrs

Average management tenure


CEO

Robert Berman (58yo)

3.7yrs

Tenure

US$395,000

Compensation

Mr. Robert Alan Berman has been Chief Executive Officer of Novume Solutions, Inc. since March 16, 2016 and has been its President since October 29, 2018. Mr. Berman serves as Chief Executive Officer of Key ...


CEO Compensation Analysis

Compensation vs Market: Robert's total compensation ($USD395.00K) is about average for companies of similar size in the US market ($USD509.90K).

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


Management Age and Tenure

0.8yrs

Average Tenure

56yo

Average Age

Experienced Management: REKR's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.0yrs

Average Tenure

67yo

Average Age

Experienced Board: REKR's board of directors are not considered experienced ( 3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellUS$821,20211 Dec 18
Richard Nathan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,593,021
Max PriceUS$0.52
SellUS$1,405,16811 Dec 18
James McCarthy
EntityIndividual
Role
Chairman of the Board
Chairman & Strategic Advisor
Shares2,725,836
Max PriceUS$0.52
BuyUS$28,41010 Dec 18
Glenn Goord
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares50,000
Max PriceUS$0.57
BuyUS$18,62526 Nov 18
Avon Road Partners LP
EntityCompany
Shares22,000
Max PriceUS$0.85
BuyUS$8,60021 Nov 18
Paul de Bary
EntityIndividual
Role
Lead Director
Lead Director
Shares10,000
Max PriceUS$0.86
BuyUS$23,29519 Nov 18
Glenn Goord
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares30,000
Max PriceUS$0.78

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.2%.


Management Team

  • Robert Berman (58yo)

    CEO, President & Director

    • Tenure: 3.7yrs
    • Compensation: US$395.00k
  • Charles Degliomini (60yo)

    Executive Vice President of Government Relations & Corporate Communications

    • Tenure: 0.5yrs
  • Lex Eley

    Outside General Counsel

    • Tenure: 0.5yrs
  • Rod Hillman (53yo)

    Chief Operating Officer

    • Tenure: 0.5yrs
  • Riaz Latifullah (62yo)

    Executive Vice President of Corporate Development

    • Tenure: 2.3yrs
    • Compensation: US$371.67k
  • Greg McCarthy (56yo)

    Chief Executive Officer of AOC Key Solutions Inc

    • Tenure: 3.8yrs
    • Compensation: US$288.56k
  • Kevin Berrigan

    SVP & CFO of AOC Key Solutions

    • Tenure: 0yrs
    • Compensation: US$251.29k
  • Matt Hill (35yo)

    Chief Science Officer

    • Tenure: 1yrs
  • Eyal Hen (46yo)

    CFO, Principal Financial & Accounting Officer

    • Tenure: 0.5yrs

Board Members

  • Dave Hanlon (74yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$38.46k
  • Robert Berman (58yo)

    CEO, President & Director

    • Tenure: 3.7yrs
    • Compensation: US$395.00k
  • Paul de Bary (72yo)

    Lead Director

    • Tenure: 2yrs
    • Compensation: US$65.93k
  • Steve Croxton (56yo)

    Independent Director

    • Tenure: 0.4yrs
  • Christine Harada (46yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$49.72k
  • Jim McCarthy (67yo)

    Chairman & Strategic Advisor

    • Tenure: 3.7yrs
    • Compensation: US$339.63k
  • Richard Nathan (74yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$246.57k
  • Glenn Goord (67yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$49.44k

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$48.648m
  • Shares outstanding: 20.27m
  • Website: https://www.rekorsystems.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REKRNasdaqCM (Nasdaq Capital Market)YesNew Common StockUSUSDAug 2017
38EDB (Deutsche Boerse AG)YesNew Common StockDEEURAug 2017

Biography

Rekor Systems, Inc., through its subsidiary, Rekor Recognition Systems, Inc., provides artificial intelligence and machine-learning enabled automated license plate recognition (ALPR) systems. Its ALPR syst ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:24
End of Day Share Price2019/11/13 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.