Reko International (REKO) AI Stock Analysis

• Market Cap: C$20.67M
• Dividend Yield: N/A
• Average Volume (3M): 73.00
• Price to Earnings (P/E): ―
• Beta (1Y): -0.37
• Revenue Growth: -12.65%
• EPS Growth: -838.74%
• Country: CA
• Employees: 400
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): -0.06
• Shares Outstanding: 5,512,813
• 10 Day Avg. Volume: 100
• 30 Day Avg. Volume: 73
• PEG Ratio: -0.69
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 49 Neutral
• Price Target: ―

Reko International's stock score reflects significant challenges in financial performance, particularly in revenue growth and profitability. Although cash flow management is strong, technical analysis indicates potential overbought conditions, and valuation metrics paint a concerning picture with a negative P/E ratio. Overall, strategic improvements are needed to enhance the company's financial health and market perception.

Reko International Business Overview & Revenue Model

Company Description

Reko International Group Inc. designs and manufactures various engineered products and services for original equipment manufacturers 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; precision 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. The company was incorporated in 1976 and is headquartered in Lakeshore, Canada. Reko International Group Inc. is a subsidiary of The Reko Family Corporation.

How the Company Makes Money

Reko International makes money through the sale of its precision engineered products and tooling solutions. Its revenue streams are primarily derived from contracts with manufacturers in the automotive industry, which require custom molds and tooling for production processes. The company also generates income from its design and manufacturing services provided to aerospace and consumer product sectors. Additionally, Reko International forms strategic partnerships and collaborates with other industrial firms to enhance its service offerings and expand its customer base, contributing to its overall earnings.

Reko International Financial Statement Overview

Summary

Reko International faces challenges in revenue growth and profitability, as evidenced by a negative income statement score. However, the cash flow score is strong, indicating efficient cash management. The balance sheet is stable but shows declining equity levels that may pose future risks. Overall, strategic improvements in operational efficiency and revenue growth are needed to enhance financial performance.

Income Statement

Reko International's income statement shows declining revenue and profitability. The company's TTM revenue of $39.65 million represents a negative growth trend from the previous year. Gross profit margin is approximately 15.16%, and net profit margin is negative due to a net loss, indicating challenges in cost management and operational efficiency. The negative EBIT and EBITDA margins further highlight operational difficulties.

Balance Sheet

The balance sheet indicates a stable equity position with a debt-to-equity ratio of approximately 0.25, suggesting moderate leverage. The equity ratio is around 69.91%, demonstrating strong equity backing relative to total assets. However, a declining stockholders' equity over recent periods may pose future risks if the trend continues.

Cash Flow

Reko International's cash flow statement is a bright spot, with a significant increase in free cash flow to $14.31 million in the TTM. The operating cash flow to net income ratio is robust, reflecting efficient cash generation in relation to net losses. Free cash flow growth indicates strong cash management and potential for reinvestment or debt reduction.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
39.65M	44.28M	46.75M	53.88M	39.20M	40.23M
	Gross Profit
6.01M	4.85M	7.09M	8.73M	4.83M	4.44M
	EBIT
198.00K	-907.00K	1.26M	2.33M	-580.00K	-654.00K
	EBITDA
2.87M	3.03M	5.52M	6.33M	4.19M	5.27M
	Net Income Common Stockholders
-3.91M	-3.89M	1.32M	2.12M	864.00K	763.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
18.16M	11.43M	12.14M	14.02M	10.71M	9.44M
	Total Assets
59.57M	58.03M	62.79M	66.89M	62.36M	61.30M
	Total Debt
10.45M	10.96M	12.06M	12.97M	9.08M	9.52M
	Net Debt
-7.71M	-475.00K	-76.00K	-1.05M	2.87M	5.08M
	Total Liabilities
17.93M	16.65M	16.88M	20.48M	15.30M	14.39M
	Stockholders Equity
41.64M	41.38M	45.91M	46.41M	47.06M	46.91M
Cash Flow		Free Cash Flow
14.30M	1.02M	1.04M	2.44M	2.69M	4.97M
	Operating Cash Flow
15.10M	3.24M	4.47M	7.80M	5.78M	6.66M
	Investing Cash Flow
-793.00K	-1.81M	-3.10M	-788.00K	-2.76M	-6.56M
	Financing Cash Flow
-1.69M	-2.13M	-3.26M	797.00K	-1.25M	-1.10M

Reko International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REKO, the sentiment is Positive. The current price of 3.75 is above the 20-day moving average (MA) of 3.72, above the 50-day MA of 3.51, and above the 200-day MA of 3.45, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 80.75 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REKO.

Reko International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TLA	70 Outperform	C$22.84M	25.32	5.22%	―	12.31%	―
Sector *	66 Neutral	$4.49B	12.22	5.40%	3.71%	4.17%	-11.97%
ENW	59 Neutral	C$43.33M	354.55	-10.19%	―	89.54%	―
REKO	49 Neutral	C$20.67M	―	-7.92%	―	-12.65%	-838.74%
PYR	48 Neutral	C$89.61M	―	-5701.32%	―	14.45%	76.75%
NXH	46 Neutral	C$12.83M	―	-525.98%	―	-24.60%	-11.26%
DYA	41 Neutral	C$68.87M	―	-1898.77%	―	408.78%	-20.74%

Reko International Corporate Events

Reko International Reports Q3 Sales Growth Amid Economic Challenges

Reko International Group Inc., facing economic challenges, reported a 7.7% increase in third-quarter sales compared to the previous year, despite a year-to-date sales decline of 11% due to reduced project volumes in the automotive sector. The company improved its gross profit margin significantly to 17.1% from 4.4% by executing fixed-price contracts more effectively and adopting a selective market strategy. However, restructuring costs impacted earnings per share negatively. Reko’s strategic restructuring aims to align its cost base with current economic conditions and position the company for long-term growth.