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Reko International Group

REKO.V
44
Industrial - Machinery · Industrials
Price
C$4.43
+0.00 (+0.00%)
Market Cap
C$24.3M
Exchange
Toronto Stock Exchange Ventures
Winston Score
44
Winston is serious
Mixed quality — meaningful strengths and weaknesses.
Data as of Aug 23, 2026 · filings through Apr 30, 2026
How the score breaks down
Quality
Weak
Growth
Good
Cash Flow
Mixed
Stability
Strong
Valuation
Good
Dividends
Good

Share count falling — buybacks

12.0% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 6.3M (2021) → 5.5M (2025)

Winston Score History

The full picture

Reko International Group is a Canadian industrial manufacturer that designs and builds custom tooling, automation systems, and precision metal components. Its main customers are automakers and their suppliers — companies that need specialized equipment to stamp, mold, or assemble car parts. The company operates primarily in the automotive manufacturing industry, serving clients across Canada and the United States.

Reko makes money by taking on engineering and manufacturing contracts, getting paid when it delivers finished tools, dies, or automated production systems. It is a small company, with operations centered in Ontario, Canada, and its competitive position relies on deep technical expertise and long-standing relationships with major auto industry customers. The biggest risk the business faces is its heavy dependence on the automotive sector, which means a slowdown in vehicle production — or a faster-than-expected shift to electric vehicles that changes tooling demand — could significantly hurt its revenue.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+28.6% YoY

YoY Growth Rate

Revenue accelerating

EPS Growth

+430.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

C$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

81.2%ownership

Insiders own a meaningful stake in the company

Cash Runway

~10 months

C$10M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Short runway — potential dilution ahead through share issuance

Revenue accelerating

Reko International Group grew revenue 29% year-over-year and the growth rate is speeding up. That's the kind of momentum growth investors look for — the question is whether margins can follow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
14.3%
Thin — 14.3% gross margin
Profit after running costs
Operating Margin
4.8%
Thin — 4.8% operating margin
Return on the money invested
ROCE
4.0%
Weak — 4.0% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales growth
Sales YoY
+7.2%
Steady sales growth (+7.2% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
6/8 quarters
Earnings grew in most of the last 8 quarters

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Cash Flow

Profit that turns into cash
Cash Conversion
66%
Modest — 66% of profit becomes cash
Spare cash per sale
FCF Margin
-12.6%
Burning cash (-12.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
0.13
Conservative — low debt load (0.13)
Covers its interest
Interest Cover
6.16x
Adequate interest coverage (6.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

Price vs profit
P/E Ratio (TTM)
8.4x
Attractive valuation — P/E 8.4

P/E under 10. The price tag is small relative to last year's profit.

Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend
Dividend Yield
4.85%
Healthy income — 4.85% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend record
Dividend Growth
N/A
Data not available

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