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Reko International Group (REKO) Fair Value & Analysis

Industrials · CA · Market cap C$28.8M

RI Reko International Group REKO · V
PriceC$5.25
Fair ValueC$3.24
Upside-38.3%
Quality70/100
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Weak Growth
Thin margins · 6.7% net margin
Low debt · generates free cash flow
Ranks above peers (10/15)
Narrow moat 34/100
Evidence: High Range C$2.43 – C$4.05 Share as image

Fair value as of: Aug 14, 2026

From 22 valuation models · updated yesterday

Share price +19.3% over the past month.

A solid business, but screening 38% overvalued on our models.

What matters now

  • A high-quality business (quality 70/100), yet the market already pays well above fair value. Quality at a full price, with little margin of safety.
  • The price sits above even our optimistic bull case (C$4.05). The favourable scenario is already priced in.
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Price vs Fair Value (5 years)

C$5.45 C$2.55 Fair Value C$3.24 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 14, 2026.

How to read this chart

60‑month range C$2.55 – C$5.45 · fair‑value band C$2.43 – C$4.05 · the C$5.25 price screens above the C$3.24 fair value. Dashed = 300-day average. As of Aug 14, 2026.

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Analysis

Reko International Group (REKO) currently trades at C$5.25, while our model-based Fair Value estimate is C$3.24, implying the stock looks roughly 38.3% overvalued today. The Quality Score stands at 70/100 (solid quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Reko International Group generated revenue of C$43.3M at a net margin of 6.7%. Revenue grew 28.6% year over year. It earns a return on equity of 6.9%. The stock trades on a trailing P/E of 9.9. Fundamentals as of Aug 14, 2026

Our scenario range runs from C$2.43 (bear case) to C$4.05 (bull case); at C$5.25, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 71% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -46% fair-value upside, at -38%, REKO screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF C$12.48 C$14.89 C$18.49 80
Residual Income C$4.93 C$4.53 C$3.19 76
Rev-Margin DCF C$7.56 C$8.53 C$9.90 74
All 22 models by family
DCF Models
FCF DCF C$12.23 C$14.80 C$18.94 38
Owner Earnings C$4.99 C$5.69 C$6.80 31
5Y Revenue Exit C$7.56 C$8.25 C$9.23 39
5Y EBITDA Exit C$10.65 C$13.60 C$17.50 41
5Y P/E Exit C$8.38 C$9.67 C$11.26 38
10Y Revenue Exit C$9.73 C$10.40 C$10.97 36
10Y EBITDA Exit C$11.36 C$13.22 C$15.11 37
10Y P/E Exit C$10.18 C$11.15 C$11.98 35
Earnings-Based
Graham-Dodd C$1.30 C$1.58 C$1.78 54
EPV C$3.10 C$3.19 C$3.26 59
Multiples
P/E Multiple C$3.00 C$4.00 C$5.00 63
P/S Multiple C$2.43 C$3.24 C$4.05 58
P/B Multiple C$2.43 C$3.24 C$4.05 55
EV/EBIT C$3.86 C$4.37 C$4.88 53
EV/EBITDA C$10.37 C$13.05 C$15.73 54
EV/Revenue C$3.42 C$3.89 C$4.36 43
Asset-Based
NCAV (Graham) C$3.85 C$5.16 C$7.70 50
Growth DCF
Growth DCF C$12.48 C$14.89 C$18.49 80
Rev-Margin DCF C$7.56 C$8.53 C$9.90 74
Economic Profit
Residual Income C$4.93 C$4.53 C$3.19 76
ROIC Compounder C$3.10 C$3.19 C$3.26 72
Growth Earnings
Growth-Adj P/E C$2.12 C$3.03 C$3.94 68

Widest divergence: DCF Models (C$10.40) versus Earnings-Based (C$1.58). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) C$43.3M
Revenue growth (YoY) +28.6%
Net margin 6.7%
Return on equity 6.9%
Free cash flow C$7.5M FY2025
P/E ratio 9.9
More key figures
Operating margin 4.8%
EPS (TTM) C$0.5300
EPS growth (YoY) +37.4%
Net cash C$76.0K FY2023

Figures from reported company fundamentals · as of Aug 14, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 70/100

Of which business quality 69 · Market factors (momentum, volatility) 76

Profitability 29
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 81
Earnings quality: real cash, not paper profit
Fin. Strength 80
Balance sheet, leverage, solvency risk
Investment 91
Disciplined investing over empire-building
Low Volatility 56
Calm price path (market factor)
Momentum 80
Price trend over the last 3–12 months (market factor)
52W Momentum 95
Distance to the 52-week high (market factor)
Net Issuance 96
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Reko International Group Inc. designs and manufactures various engineered products and solutions for original equipment manufacturers and other industrial manufacturers and contractors in Canada and the United States.

Full company description

Reko International Group Inc. designs and manufactures various engineered products and solutions for original equipment manufacturers and other industrial manufacturers and contractors in Canada and the United States. The company engages in the design and construction of specialty machines and lean cell factory automation, and robotics integration solutions; and high precision, custom machining of critical components and assemblies. It serves various sectors, including automotive, aerospace, rail, power generation, offsite construction, mining, infrastructure, and capital equipment. Reko International Group Inc. was incorporated in 1976 and is headquartered in Lakeshore, Canada. Reko International Group Inc. is a subsidiary of 1000926094 Ontario Inc.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Reko International Group reported revenue of C$42.2M in FY2025 versus C$39.2M in FY2021, a compound +1.8%/yr. Reported net income was C$1.0M in FY2025, compounding +4.9%/yr from FY2021.

Growth Quality 40/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
C$42.2M
Latest YoY
−4.8%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−7.9%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.9%
Avg. growth/yr (28Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−1.0%
Revenue +1.8%/yr
FY21 C$39.2M
FY22 C$53.9M
FY23 C$46.8M
FY24 C$44.3M
FY25 C$42.2M
Net income +4.9%/yr
FY21 C$864K
FY22 C$2.1M
FY23 C$1.3M
FY24 −C$3.9M
FY25 C$1.0M

REKO screens 38% overvalued. Compare with GE Vernova Inc →

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Cite: Fair Value Calculator (2026). "Reko International Group Fair Value". https://www.fairvalue-calculator.com/stock/REKO

Peer Group

Specialty Industrial Machinery · 807 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 70 · Top 25%
Fair Value upside −38% · Above median
Return on equity (TTM) 7% · Below median
Return on assets 1% · Below median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 5% · Below median
Revenue growth 29% · Top 25%
Dividend yield (TTM) 0.0% · Bottom 25%
Debt / equity 0.13× · Higher than median

Valuation Multiples vs Specialty Industrial Machinery median · lower = cheaper

P/E (TTM) 9.9× · Cheaper than 75% of peers
P/B 0.49× · Cheaper than 75% of peers
P/S (TTM) 0.48× · Cheaper than 75% of peers
P/FCF 2.8× · Cheaper than median
EV/EBITDA 1.7× · Cheaper than 75% of peers
PEG 1.48× · Cheaper than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0 · sector 0
FUTURE 100 · sector 22
PAST 28 · sector 28
HEALTH 94 · sector 96
DIVIDEND 0 · sector 24

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Industrial Machinery stocks, each showing price versus our Fair Value estimate (as of Aug 14, 2026).

Stock Price Fair Value vs Fair Value
GE Vernova Inc 1GEV €899.80 €186.93 -79%
1SIE 1SIE €281.75 €91.93 -67%
SMNS SMNS C$31.76 C$22.75 -28%
Atlas Copco AB ATCOA kr 210.00 kr 112.59 -46%
Sandvik AB SAND kr 358.60 kr 193.01 -46%
Zhejiang Sanhua Intelligent Controls Co 002050 ¥39.17 ¥22.68 -42%
NARI Technology Co 600406 ¥24.06 ¥18.71 -22%
ABB India Limited ABB ₹7,700 ₹1,322 -83%
Cummins India Limited CUMMINSIND ₹5,315 ₹1,355 -75%
Bharat Heavy Electricals Limited BHEL ₹420.00 ₹96.51 -77%

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Frequently asked questions

Is Reko International Group (REKO) overvalued or undervalued?
As of Aug 14, 2026, our model estimates a fair value of C$3.24 versus a price of C$5.25, about −38% (overvalued).
What is the fair value of REKO?
Our model-based fair value for Reko International Group is C$3.24 (as of Aug 14, 2026), built from audited fundamentals. The current price is C$5.25.
What is the quality score of REKO?
Reko International Group has a Quality Score of 70/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Reko International Group (REKO)?
Reko International Group reported trailing-twelve-month revenue of about C$43.3M (latest available figure, as of Aug 14, 2026).
What is the net profit margin of REKO?
The net profit margin of Reko International Group is about 6.7%, meaning it keeps roughly 6.7% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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