REKO INTERNATIONAL GROUP INC (REKO.CA) Stock Fundamental Analysis
Canada • TSX Venture Exchange • TSX-V:REKO • CA75941H1064
4.2 CAD
-0.04 (-0.94%)
Last: Jan 29, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to REKO. REKO was compared to 23 industry peers in the Machinery industry. REKO has an excellent financial health rating, but there are some minor concerns on its profitability. REKO is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- REKO had positive earnings in the past year.
- REKO had a positive operating cash flow in the past year.
- REKO had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years REKO had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 2.50%, REKO belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
- REKO has a Return On Equity of 3.16%. This is amongst the best in the industry. REKO outperforms 82.61% of its industry peers.
- REKO has a Return On Invested Capital (0.71%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.5% | ||
| ROE | 3.16% | ||
| ROIC | 0.71% |
ROA(3y)-1.01%
ROA(5y)0.31%
ROE(3y)-1.35%
ROE(5y)0.47%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- REKO has a better Profit Margin (3.27%) than 86.96% of its industry peers.
- In the last couple of years the Profit Margin of REKO has grown nicely.
- REKO's Operating Margin of 1.14% is in line compared to the rest of the industry. REKO outperforms 52.17% of its industry peers.
- REKO's Operating Margin has declined in the last couple of years.
- REKO's Gross Margin of 16.44% is on the low side compared to the rest of the industry. REKO is outperformed by 69.57% of its industry peers.
- REKO's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.14% | ||
| PM (TTM) | 3.27% | ||
| GM | 16.44% |
OM growth 3Y-28.69%
OM growth 5YN/A
PM growth 3Y-14.28%
PM growth 5Y5.5%
GM growth 3Y1.81%
GM growth 5Y9.12%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), REKO is destroying value.
- Compared to 1 year ago, REKO has less shares outstanding
- The number of shares outstanding for REKO has been reduced compared to 5 years ago.
- The debt/assets ratio for REKO has been reduced compared to a year ago.
2.2 Solvency
- REKO has an Altman-Z score of 3.18. This indicates that REKO is financially healthy and has little risk of bankruptcy at the moment.
- REKO has a Altman-Z score of 3.18. This is amongst the best in the industry. REKO outperforms 82.61% of its industry peers.
- The Debt to FCF ratio of REKO is 2.81, which is a good value as it means it would take REKO, 2.81 years of fcf income to pay off all of its debts.
- REKO has a Debt to FCF ratio of 2.81. This is amongst the best in the industry. REKO outperforms 86.96% of its industry peers.
- A Debt/Equity ratio of 0.12 indicates that REKO is not too dependend on debt financing.
- With an excellent Debt to Equity ratio value of 0.12, REKO belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.81 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.08
WACC8.39%
2.3 Liquidity
- REKO has a Current Ratio of 4.40. This indicates that REKO is financially healthy and has no problem in meeting its short term obligations.
- REKO has a Current ratio of 4.40. This is amongst the best in the industry. REKO outperforms 91.30% of its industry peers.
- A Quick Ratio of 3.68 indicates that REKO has no problem at all paying its short term obligations.
- With an excellent Quick ratio value of 3.68, REKO belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.4 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 132.34% over the past year.
- Measured over the past years, REKO shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.59% on average per year.
- Looking at the last year, REKO shows a small growth in Revenue. The Revenue has grown by 0.38% in the last year.
- Measured over the past years, REKO shows a small growth in Revenue. The Revenue has been growing by 0.94% on average per year.
EPS 1Y (TTM)132.34%
EPS 3Y-18.36%
EPS 5Y9.59%
EPS Q2Q%353.9%
Revenue 1Y (TTM)0.38%
Revenue growth 3Y-7.86%
Revenue growth 5Y0.94%
Sales Q2Q%-11.58%
3.2 Future
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
- No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
- No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 17.50, which indicates a rather expensive current valuation of REKO.
- 86.96% of the companies in the same industry are more expensive than REKO, based on the Price/Earnings ratio.
- REKO's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.5 | ||
| Fwd PE | N/A |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, REKO is valued cheaper than 100.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of REKO indicates a rather cheap valuation: REKO is cheaper than 91.30% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.14 | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
- The decent profitability rating of REKO may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 4.76%, REKO is a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 0.93, REKO pays a better dividend. On top of this REKO pays more dividend than 95.65% of the companies listed in the same industry.
- REKO's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.76% |
5.2 History
- REKO has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DP0%
EPS Next 2YN/A
EPS Next 3YN/A
REKO INTERNATIONAL GROUP INC / REKO.CA FAQ
What is the ChartMill fundamental rating of REKO INTERNATIONAL GROUP INC (REKO.CA) stock?
ChartMill assigns a fundamental rating of 6 / 10 to REKO.CA.
What is the valuation status of REKO INTERNATIONAL GROUP INC (REKO.CA) stock?
ChartMill assigns a valuation rating of 4 / 10 to REKO INTERNATIONAL GROUP INC (REKO.CA). This can be considered as Fairly Valued.
How profitable is REKO INTERNATIONAL GROUP INC (REKO.CA) stock?
REKO INTERNATIONAL GROUP INC (REKO.CA) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for REKO stock?
The Price/Earnings (PE) ratio for REKO INTERNATIONAL GROUP INC (REKO.CA) is 17.5 and the Price/Book (PB) ratio is 0.54.
Can you provide the dividend sustainability for REKO stock?
The dividend rating of REKO INTERNATIONAL GROUP INC (REKO.CA) is 5 / 10 and the dividend payout ratio is 0%.