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Rekor Systems, Inc. (REKR) stock analysis

REKRNasdaqCommunications Equipment, NECFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 12, 2026Score 8/3063% below fair value
$0.32−0.01 (-2.02%)

Close on Nov 12, 2026Market cap $43.99MP/E –Yield –

StockData Score

Prices as of Nov 12, 2026How the score works

Value3Growth2Performance1Health2Dividend0

Weak8 of 30 checks passed

Rekor Systems passes 8 of the 30 checks behind our score; 12 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
2/6
Past performance
1/6
Financial health
2/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 63.0% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $0.32 is below our fair value estimate of $0.86.

  • Low debt

    Debt is 0.2% of shareholders' equity, under the 40% we consider low.

  • Revenue growing 10%+ a year

    Revenue grew 34.5% a year over the last three fiscal years.

What to watch

  • Return on equity under 15%

    Return on equity was -60.3% over the last twelve months and averaged -105% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -47.4%, below the 10% that usually covers the cost of capital.

  • Interest not well covered

    Operating income covers interest expense -8.6 times; we look for at least 5.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals -21567% of total debt; we look for at least 20%.

Valuation3/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B below the industry

    Rekor Systems's price-to-book of 1.39 is below the Communications Equipment median of 2.38.

  • Trading below fair value

    The share price of $0.32 is below our fair value estimate of $0.86.

  • Margin of safety over 20%

    The price is 63.0% below fair value, more than the 20% cushion we look for.

Growth2/6

  • Revenue growing 10%+ a year

    Revenue grew 34.5% a year over the last three fiscal years.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings acceleration

    Needs positive net income now, a year ago and five years ago.

  • Growing slower than the industry

    Revenue grew -5.1% over the last twelve months; the Communications Equipment median is 10.1%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin improving

    Gross margin was 54.3% over the last twelve months, against 53.9% a year earlier.

Past performance1/6

  • Return on equity under 15%

    Return on equity was -60.3% over the last twelve months and averaged -105% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -47.4%, below the 10% that usually covers the cost of capital.

  • Return on equity below the industry

    Rekor Systems's return on equity of -60.3% is below the Communications Equipment median of -3.7%.

  • Earnings over 5 years

    Needs positive net income five years ago and in the latest year.

  • Net margin above its 5-year average

    Net margin was -44.2% over the last twelve months, against a 5-year average of -196%.

  • Net margin below the industry

    Rekor Systems's net margin of -44.2% is below the Communications Equipment median of -2.2%.

Financial health2/6

  • Low debt

    Debt is 0.2% of shareholders' equity, under the 40% we consider low.

  • Debt falling against equity

    Debt to equity fell from 3.9% five years ago to 0.2%.

  • Debt not well covered by cash flow

    Operating cash flow over the last twelve months equals -21567% of total debt; we look for at least 20%.

  • Interest not well covered

    Operating income covers interest expense -8.6 times; we look for at least 5.

  • Short-term assets don't cover short-term debts

    Current assets are 0.61 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is -6.54; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Rekor Systems has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$0.86

The share price is 63% below this estimate.

20%+ below
Near fair value
20%+ above
$0.32Price$0.86Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B2.5×2.6×2.4×$0.5850%
P/S3.4×4.0×2.8×$1.1550%
Fair value$0.86100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/B at month end
  • Own 5-year median 2.6
  • Communications Equipment median 2.4

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

High risk

Average value traded per day
$790.32K
Value traded per 1% price move
$149.15K

Downside

High risk

Typical loss in a bad month
45.7%
Volatility (annualized)
82%
Sharpe ratio, 1 year
-1.09
Beta to the S&P 500 (5Y)
2.17

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2015 to 2025

Gross margin

55.9%−5.9 pts over 5 years

Operating margin

-59.6%+68.7 pts over 5 years

Net margin

-64.9%+88.7 pts over 5 years

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