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Reko International
(REKO)
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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)
Market Cap
C$27.15M
Dividend Yield4.04%
Average Volume (3M)144.00
Price to Earnings (P/E)8.6
Beta (1Y)-0.10
Revenue Growth7.21%
EPS GrowthN/A
CountryCA
Employees37
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.53
Shares Outstanding5,484,313
10 Day Avg. Volume192
30 Day Avg. Volume144
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
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
Income Statement
62
Positive
Balance Sheet
78
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 43.30M | 42.15M | 44.28M | 46.75M | 53.88M | 39.20M |
| Gross Profit | 6.80M | 7.20M | 4.85M | 7.09M | 8.73M | 4.83M |
| EBITDA | 6.46M | 4.76M | 3.03M | 5.52M | 6.33M | 4.19M |
| Net Income | 2.90M | 1.04M | -3.89M | 1.32M | 2.12M | 864.00K |
Balance Sheet | ||||||
| Total Assets | 53.78M | 56.92M | 58.03M | 62.79M | 66.89M | 62.36M |
| Cash, Cash Equivalents and Short-Term Investments | 9.81M | 18.00M | 11.43M | 12.14M | 14.02M | 10.71M |
| Total Debt | 5.58M | 9.40M | 10.96M | 12.06M | 12.97M | 9.08M |
| Total Liabilities | 10.83M | 14.71M | 16.65M | 16.88M | 20.48M | 15.30M |
| Stockholders Equity | 42.94M | 42.21M | 41.38M | 45.91M | 46.41M | 47.06M |
Cash Flow | ||||||
| Free Cash Flow | -5.46M | 7.52M | 1.02M | 1.04M | 2.44M | 2.69M |
| Operating Cash Flow | 1.91M | 10.40M | 3.24M | 4.47M | 7.80M | 5.78M |
| Investing Cash Flow | -6.66M | -2.04M | -1.81M | -3.10M | -788.00K | -2.76M |
| Financing Cash Flow | -5.42M | -1.81M | -2.13M | -3.26M | 797.00K | -1.25M |
Reko International Technical Analysis
Neutral
3.66
Price Trends
4.65
Negative
4.43
Positive
4.19
Positive
Market Momentum
0.01
Positive
45.36
Neutral
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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | C$27.15M | 8.65 | 6.20% | 4.04% | 7.21% | ― | |
53 Neutral | C$26.71M | -14.33 | -16.94% | ― | 9.31% | -124.29% | |
50 Neutral | C$45.27M | -4.07 | 112.32% | ― | 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 | -5.44 | 718.52% | ― | -57.68% | 24.90% |
* Industrials Sector Average
TSE:REKO
Reko International
4.50
0.25
5.88%
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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.