Reko International Group, Inc. (REKO) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Why is Reko International Group, Inc. ?

Company has a low Debt to Equity ratio (avg) at times

The company has declared positive results in Jan'2025 after 7 consecutive negative quarters

PRE-TAX PROFIT(Q) At CAD 0.47 MM has Grown at 368.66%
ROCE(HY) Highest at 3.19%
DIVIDEND PAYOUT RATIO(Y) Highest at 286.12%

With ROE of 3.26%, it has a very attractive valuation with a 0.52 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 42.96%, its profits have risen by 134.8% ; the PEG ratio of the company is 0.1

Market Beating Performance

The stock has generated a return of 42.96% in the last 1 year, much higher than market (S&P/TSX 60) returns of 21.87%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Reko International Group, Inc. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Reko International Group, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Reko International Group, Inc.

-100.0%

-0.31

48.30%

S&P/TSX 60

21.87%

1.42

15.41%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.60%

EBIT Growth (5y)

18.42%

EBIT to Interest (avg)

0.40

Debt to EBITDA (avg)

0.43

Net Debt to Equity (avg)

-0.25

Sales to Capital Employed (avg)

0.81

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

ROCE (avg)

1.39%

ROE (avg)

1.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.52

EV to EBIT

14.74

EV to EBITDA

3.31

EV to Capital Employed

0.42

EV to Sales

0.37

PEG Ratio

0.12

Dividend Yield

ROCE (Latest)

2.22%

ROE (Latest)

3.26%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bearish

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Bearish

No Trend

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

19What is working for the Company

PRE-TAX PROFIT(Q)

At CAD 0.47 MM has Grown at 368.66%

ROCE(HY)

Highest at 3.19%

DIVIDEND PAYOUT RATIO(Y)

Highest at 286.12%

CASH AND EQV(HY)

Highest at CAD 30.5 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 2.63 times

DIVIDEND PER SHARE(HY)

Highest at CAD 2.63

NET PROFIT(Q)

At CAD 0.38 MM has Grown at 50.88%

-5What is not working for the Company

INTEREST(9M)

At CAD 0.29 MM has Grown at 14.96%

RAW MATERIAL COST(Y)

Grown by 14.15% (YoY

NET SALES(Q)

Lowest at CAD 9.05 MM

Here's what is working for Reko International Group, Inc.

Pre-Tax Profit

At CAD 0.47 MM has Grown at 368.66%

over average net sales of the previous four periods of CAD 0.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 0.38 MM has Grown at 50.88%

over average net sales of the previous four periods of CAD 0.25 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Cash and Eqv

Highest at CAD 30.5 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 2.63 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at CAD 2.63

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Dividend Payout Ratio

Highest at 286.12%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Reko International Group, Inc.

Interest

At CAD 0.29 MM has Grown at 14.96%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Net Sales

Lowest at CAD 9.05 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Net Sales

At CAD 9.05 MM has Fallen at -14.11%

over average net sales of the previous four periods of CAD 10.54 MM

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Raw Material Cost

Grown by 14.15% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales