Reco International GroupTSXV:RGI Gross Margin % is 41.37% as of Mar. 2026, which is 1% above its 10-year median of 41.05. The stock has 6 warning signs investors should review. Among 1,718 Construction companies, Reco International Group ranks worse than 66.76% on this metric.
TSXV:RGI's Gross Margin % is ranked worse than 66.76% of 1718
companies
in the Construction industry
Industry Median: 20.72
vs TSXV:RGI: 14.38
Reco International Group had a gross margin of 41.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Reco International Group was -24.60% per year.
Reco International Group (TSXV:RGI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Reco International Group had a gross margin of 41.37% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Reco International Group Gross Margin % Related Terms
Reco International Group Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSXV:RGI vs PWR, FIX, EME: Gross Margin % Comparison
For the Engineering & Construction subindustry, Reco International Group's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reco International Group Gross Margin % vs Construction Industry
For the Construction industry and Industrials sector, Reco International Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Reco International Group's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Reco International Group (TSXV:RGI) has a Gross Margin % of 41.37% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Reco International Group and its competitors. This is near median its historical median of 41.05. Over the past decade, Reco International Group's Gross Margin % has ranged from 5.86 to 70.94. According to the industry distribution chart, Reco International Group ranks #1147 out of 1718 companies in the Construction industry, placing it in the top 66.8%.
Is Reco International Group's Gross Margin % too high?
Reco International Group's current Gross Margin % of 41.37% is near median its 10-year median of 41.05. Over the past 10 years, this metric has ranged from a low of 5.86 to a high of 70.94. The Construction industry median Gross Margin % is 20.72. Reco International Group's value of 41.37% is 99.7% above this industry median. Based on the distribution chart, Reco International Group ranks #1147 out of 1718 companies in the Construction industry, which is below the industry midpoint.
How does Reco International Group's Gross Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Reco International Group ranks #1147 out of 1718 companies for Gross Margin %. This places Reco International Group in the lower half of its industry. The industry median Gross Margin % is 20.72. Reco International Group's value of 41.37% is 99.7% above this benchmark. Historically, Reco International Group's own Gross Margin % has ranged from 5.86 to 70.94 over the past decade. While the company's 10-year median is 41.05 vs. the industry median of 20.72, Reco International Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Construction company?
The median Gross Margin % among Construction companies is 20.72, based on 1,718 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reco International Group's current Gross Margin % of 41.37% is 99.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Reco International Group and its competitors. For the Construction industry, the median Gross Margin % is 20.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reco International Group's current Gross Margin % is 41.37%, which is near median its own 10-year median of 41.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reco International Group stock overvalued right now?
Based on GuruFocus' analysis, Reco International Group (TSXV:RGI) is currently considered Fairly Valued. The stock's GF Value™ is C$0.01, compared to a current price of C$0.01 — trading right at its estimated fair value. The current Gross Margin % is 41.37%, which is near median its 10-year median of 41.05 and 99.7% above the Construction industry median of 20.72. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Reco International Group (TSXV:RGI), the current Gross Margin % is 41.37% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Reco International Group Inc together with its subsidiaries, operates commercial and residential construction and millwork businesses in British Columbia, Canada. The company's services include project management, pre-design and build, interior design and build, tenant improvements, general contracting, construction set of drawings, site measurement, CAD drawings, space planning, 3D renderings, furniture layout and specifications, millwork design, procurement, finishing work, and upholstery. Its services are utilized in retail and supermarket projects, as well as in commercial and institutional sectors, including food services, schools, hospitals, and government services.
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