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Reko International Group Inc (TSE:REKO)
:REKO
Canadian Market
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Reko International (REKO) AI Stock Analysis

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TSE:REKO

Reko International

(REKO)

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Neutral 61 (OpenAI - Gpt-5.6Sol)
Rating:61Neutral
Price Target:
C$4.50
▲(22.95% Upside)
Action:Reiterated
Date:08/30/26
The score is primarily driven by improving profitability and a low-leverage balance sheet, but is held back by weak cash conversion and negative free cash flow. Technical indicators also point to soft near-term momentum, while the low P/E and strong dividend yield provide a valuation offset.
Positive Factors
Improving Revenue and Profitability
The rebound in revenue and profitability indicates stronger recent operating performance. If sustained through project execution and disciplined pricing, improved margins can strengthen internal funding and provide a firmer base for future growth.
Negative Factors
Weak Cash Conversion
Low operating cash generation relative to earnings and negative free cash flow weaken the quality of reported profits. If the shortfall persists, REKO may face greater working-capital, execution, or external-financing needs despite its low leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Revenue and Profitability
The rebound in revenue and profitability indicates stronger recent operating performance. If sustained through project execution and disciplined pricing, improved margins can strengthen internal funding and provide a firmer base for future growth.
Read all positive factors

Reko International (REKO) vs. iShares MSCI Canada ETF (EWC)

Reko International Business Overview & Revenue Model

Company Description
Headquartered in Lakeshore, Canada, Reko International Group Inc. has been a key provider of engineered products and services since its incorporation in 1976. The company primarily serves original equipment manufacturers (OEMs) throughout Canada a...
How the Company Makes Money
REKO primarily makes money by selling engineered-to-order manufacturing solutions and related services to industrial customers. Key revenue streams typically include: - Custom tooling programs: Revenue from designing and manufacturing specialized...

Reko International Financial Statement Overview

Summary
Operating results improved in the TTM period (revenue +7.3% with better profitability and higher net margin), and the balance sheet is conservatively financed with low leverage (debt-to-equity ~0.13). However, cash flow quality is a key weakness: operating cash flow is low versus net income (~0.28x) and free cash flow is negative (~-$5.5M), which increases execution/financing risk until cash conversion normalizes.
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
BreakdownTTMJul 2025Jul 2024Jul 2023Jul 2022Jul 2021
Income Statement
Total Revenue43.30M42.15M44.28M46.75M53.88M39.20M
Gross Profit6.80M7.20M4.85M7.09M8.73M4.83M
EBITDA6.46M4.76M3.03M5.52M6.33M4.19M
Net Income2.90M1.04M-3.89M1.32M2.12M864.00K
Balance Sheet
Total Assets53.78M56.92M58.03M62.79M66.89M62.36M
Cash, Cash Equivalents and Short-Term Investments9.81M18.00M11.43M12.14M14.02M10.71M
Total Debt5.58M9.40M10.96M12.06M12.97M9.08M
Total Liabilities10.83M14.71M16.65M16.88M20.48M15.30M
Stockholders Equity42.94M42.21M41.38M45.91M46.41M47.06M
Cash Flow
Free Cash Flow-5.46M7.52M1.02M1.04M2.44M2.69M
Operating Cash Flow1.91M10.40M3.24M4.47M7.80M5.78M
Investing Cash Flow-6.66M-2.04M-1.81M-3.10M-788.00K-2.76M
Financing Cash Flow-5.42M-1.81M-2.13M-3.26M797.00K-1.25M

Reko International Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price3.66
Price Trends
50DMA
4.65
Negative
100DMA
4.43
Positive
200DMA
4.19
Positive
Market Momentum
MACD
0.01
Positive
RSI
45.36
Neutral
STOCH
36.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REKO, the sentiment is Neutral. The current price of 3.66 is below the 20-day moving average (MA) of 4.66, below the 50-day MA of 4.65, and below the 200-day MA of 4.19, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 45.36 is Neutral, neither overbought nor oversold. The STOCH value of 36.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:REKO.

Reko International Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
61
Neutral
C$27.15M8.656.20%4.04%7.21%
53
Neutral
C$26.71M-14.33-16.94%9.31%-124.29%
50
Neutral
C$45.27M-4.07112.32%11.62%16.81%
47
Neutral
C$13.40M-15.29-5.66%-8.43%-233.47%
42
Neutral
C$33.63M-2.67-138.91%374.59%74.40%
41
Neutral
C$53.37M-5.44718.52%-57.68%24.90%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:REKO
Reko International
4.50
0.25
5.88%
TSE:DYA
dynaCERT
0.11
-0.04
-25.00%
TSE:ENW
Enwave Corp
0.23
-0.13
-36.62%
TSE:PYR
PyroGenesis Canada
0.20
-0.08
-27.27%
TSE:TLA
Titan Logix
0.50
-0.03
-5.66%
TSE:NXH
Next Hydrogen Solutions Inc
0.37
-0.15
-28.85%
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.Date of analysis: Aug 30, 2026