Reko International Group Inc (TSE:REKO)
:REKO
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Reko International
(REKO)
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Rating:65Neutral
Price Target:
C$5.00
▲(36.61% Upside)
Action:ReiteratedDate:03/06/26
The score is driven primarily by improving profitability and a conservatively financed balance sheet, tempered by thin margins, weak multi-year revenue trajectory, and negative TTM free cash flow. Technicals are mildly positive with price above major moving averages, and valuation is supported by a reasonable P/E and strong dividend yield.
Positive Factors
Conservative Balance Sheet
Low debt relative to equity provides enduring financial flexibility. With debt-to-equity near 0.15, Reko can fund project timing mismatches, absorb demand shocks, and pursue necessary tooling investments or small acquisitions without material refinancing risk, supporting stability over months.
Negative Factors
Declining Revenue Trend
A multi-year top-line decline reduces scale benefits for custom tooling and weakens pricing leverage. Falling revenue tightens margins, raises per-project overhead, and increases dependence on a smaller set of contracts, making sustainable margin improvement and growth harder to achieve.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative Balance Sheet
Low debt relative to equity provides enduring financial flexibility. With debt-to-equity near 0.15, Reko can fund project timing mismatches, absorb demand shocks, and pursue necessary tooling investments or small acquisitions without material refinancing risk, supporting stability over months.
Read all positive factors
Reko International (REKO) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$21.17M
Dividend YieldN/A
Average Volume (3M)443.00
Price to Earnings (P/E)15.3
Beta (1Y)-0.05
Revenue Growth1.76%
EPS GrowthN/A
CountryCA
Employees400
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.26
Shares Outstanding5,485,013
10 Day Avg. Volume50
30 Day Avg. Volume443
Financial Highlights & Ratios
PEG Ratio-0.15
Price to Book (P/B)0.48
Price to Sales (P/S)0.49
P/FCF Ratio2.72
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reko International Business Overview & Revenue Model
Company Description
Reko International (REKO) is a leading provider of innovative manufacturing solutions, specializing in the design and production of high-precision components and assemblies for various industries, including automotive, aerospace, and industrial se...
How the Company Makes Money
REKO makes money primarily by (1) selling custom-built industrial tooling and automated production systems and (2) providing related engineering and support services. Revenue is typically generated on a project/contract basis: customers place orde...
Reko International Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
76
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.35M | 42.15M | 44.28M | 46.75M | 53.88M | 39.20M |
| Gross Profit | 6.67M | 7.20M | 4.85M | 7.09M | 8.73M | 4.83M |
| EBITDA | 5.30M | 4.76M | 3.03M | 5.52M | 6.33M | 4.19M |
| Net Income | 1.41M | 1.04M | -3.89M | 1.32M | 2.12M | 864.00K |
Balance Sheet | ||||||
| Total Assets | 53.07M | 56.92M | 58.03M | 62.79M | 66.89M | 62.36M |
| Cash, Cash Equivalents and Short-Term Investments | 13.01M | 18.00M | 11.43M | 12.14M | 14.02M | 10.71M |
| Total Debt | 5.91M | 9.40M | 10.96M | 12.06M | 12.97M | 9.08M |
| Total Liabilities | 11.28M | 14.71M | 16.65M | 16.88M | 20.48M | 15.30M |
| Stockholders Equity | 41.78M | 42.21M | 41.38M | 45.91M | 46.41M | 47.06M |
Cash Flow | ||||||
| Free Cash Flow | -685.00K | 7.52M | 1.02M | 1.04M | 2.44M | 2.69M |
| Operating Cash Flow | 4.85M | 10.40M | 3.24M | 4.47M | 7.80M | 5.78M |
| Investing Cash Flow | -4.56M | -2.04M | -1.81M | -3.10M | -788.00K | -2.76M |
| Financing Cash Flow | -5.45M | -1.81M | -2.13M | -3.26M | 797.00K | -1.25M |
Reko International Technical Analysis
Positive
3.66
Price Trends
4.00
Positive
3.94
Positive
3.86
Positive
Market Momentum
0.18
Negative
89.62
Negative
100.00
Negative
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 3.66 is below the 20-day moving average (MA) of 4.06, below the 50-day MA of 4.00, and below the 200-day MA of 3.86, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 89.62 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REKO.
Reko International Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | C$21.17M | 15.29 | 3.19% | ― | 1.76% | ― | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
48 Neutral | C$13.13M | -17.77 | -2.57% | ― | -14.47% | -235.13% | |
43 Neutral | C$71.16M | -4.20 | 6908.84% | ― | -59.80% | 10.13% | |
43 Neutral | C$33.83M | -9.73 | -5.73% | ― | 76.04% | 68.65% | |
42 Neutral | C$38.05M | -1.79 | ― | ― | 151.13% | 48.52% | |
40 Underperform | C$78.51M | -4.02 | 161.82% | ― | -19.68% | -106.23% |
* Industrials Sector Average
TSE:REKO
Reko International
3.86
0.35
9.97%
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Reko International Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
Reko International Lifts Profit Despite Lower Q2 Sales and Macro Headwinds
Positive
Mar 5, 2026
Reko International reported second-quarter fiscal 2026 sales of $10.2 million, down 5.8% from a year earlier, as lower volumes and earlier-stage project timing reduced recognized revenue. Despite the top-line decline, net income rose 20.4% to $377...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.