Reco International Group (TSXV:RGI) Beneish M-Score: -8.81 (As of Jun. 25, 2026)


What is Reco International Group Beneish M-Score?

Reco International Group TSXV:RGI Beneish M-Score is -8.81 as of Jun. 25, 2026. The stock has 6 warning signs investors should review. Among 1,704 Construction companies, Reco International Group ranks better than 99.3% on this metric.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -8.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Reco International Group's Beneish M-Score or its related term are showing as below:

TSXV:RGI' s Beneish M-Score Range Over the Past 10 Years
Min: -9.74   Med: -3.79   Max: 1.55
Current: -8.81

During the past 13 years, the highest Beneish M-Score of Reco International Group was 1.55. The lowest was -9.74. And the median was -3.79.

Reco International Group Beneish M-Score Historical Data

* Premium members only.

The historical data trend for Reco International Group's Beneish M-Score can be seen below:

* 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.

Reco International Group Beneish M-Score Chart

Reco International Group Annual Data
Trend Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24 Sep25
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -6.28 -2.89 -5.53 -3.36 -7.28

Reco International Group Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.73 0.00 -7.28 -9.74 -8.81

TSXV:RGI vs PWR, FIX, EME: Beneish M-Score Comparison

For the Engineering & Construction subindustry, Reco International Group's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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 Beneish M-Score vs Construction Industry

For the Construction industry and Industrials sector, Reco International Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Reco International Group's Beneish M-Score falls into.


Reco International Group Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Reco International Group for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.9141+0.528 * 1.6053+0.404 * 3.407+0.892 * 0.6336+0.115 * 1.5437
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3677+4.679 * -1.503356-0.327 * 1.56
=-8.81

* 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.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was C$0.29 Mil.
Revenue was 0.759 + 0.534 + 0.547 + 0.949 = C$2.79 Mil.
Gross Profit was 0.314 + 0.143 + -0.1 + 0.044 = C$0.40 Mil.
Total Current Assets was C$0.34 Mil.
Total Assets was C$0.60 Mil.
Property, Plant and Equipment(Net PPE) was C$0.22 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.21 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.10 Mil.
Total Current Liabilities was C$3.34 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.02 Mil.
Net Income was 0.022 + -0.098 + -0.487 + -0.376 = C$-0.94 Mil.
Non Operating Income was -0.011 + 0.05 + -0.018 + -0.014 = C$0.01 Mil.
Cash Flow from Operations was 0.01 + 0.043 + -0.1 + -0.003 = C$-0.05 Mil.
 Total Receivables was C$0.50 Mil.
Revenue was 0.349 + 0.955 + 1.543 + 1.555 = C$4.40 Mil.
Gross Profit was 0.121 + 0.099 + 0.405 + 0.391 = C$1.02 Mil.
Total Current Assets was C$0.60 Mil.
Total Assets was C$0.70 Mil.
Property, Plant and Equipment(Net PPE) was C$0.09 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.25 Mil.
Selling, General, & Admin. Expense(SGA) was C$1.27 Mil.
Total Current Liabilities was C$2.52 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0.289 / 2.789) / (0.499 / 4.402)
=0.103621 / 0.113358
=0.9141

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1.016 / 4.402) / (0.401 / 2.789)
=0.230804 / 0.143779
=1.6053

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0.342 + 0.222) / 0.596) / (1 - (0.6 + 0.087) / 0.698)
=0.053691 / 0.015759
=3.407

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=2.789 / 4.402
=0.6336

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0.254 / (0.254 + 0.087)) / (0.207 / (0.207 + 0.222))
=0.744868 / 0.482517
=1.5437

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1.104 / 2.789) / (1.274 / 4.402)
=0.395841 / 0.289414
=1.3677

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.016 + 3.342) / 0.596) / ((0 + 2.521) / 0.698)
=5.634228 / 3.611748
=1.56

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-0.939 - 0.007 - -0.05) / 0.596
=-1.503356

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Reco International Group has a M-score of -8.81 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -8.81 mean?
Reco International Group (TSXV:RGI) has a Beneish M-Score of -8.81 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Reco International Group and its competitors. According to the industry distribution chart, Reco International Group ranks #12 out of 1704 companies in the Construction industry, placing it in the top 0.7%.
Is Reco International Group's Beneish M-Score too high?
Reco International Group's current Beneish M-Score is -8.81. Based on the distribution chart, Reco International Group ranks #12 out of 1704 companies in the Construction industry, which is in the top quartile — a strong position relative to peers.
How does Reco International Group's Beneish M-Score compare to PWR and FIX?
According to the Construction industry distribution chart, Reco International Group ranks #12 out of 1704 companies for Beneish M-Score. This places Reco International Group in the top 1% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Construction company?
A good Beneish M-Score depends on the Construction industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Reco International Group and its competitors. Reco International Group's current Beneish M-Score is -8.81. 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 Beneish M-Score is -8.81. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Reco International Group (TSXV:RGI), the current Beneish M-Score is -8.81 as of Jun. 25, 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 Business Description

Address 11920 Forge Place, No. 145, Richmond, BC, CAN, V7A 4V9
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.