Reo Plastics, Inc. (REOP) research, news, and more from GeoInvesting

Company description

Mon, 29 Jul 2013 04:00:00 GMT

For over 50 years, we have continued to expand our capabilities and focus on satisfying our customer's needs. We believe that forging relationships with our customers is critical to our mutual success and strive to do so by providing the utmost in Quality, Service, and Productivity. Whether your requirements are for high or low volume, simple or complex parts, or complete assemblies, look to REO Plastics to satisfy your custom plastic injection molding needs.

Research

Mon, 14 Sep 2026 14:31:29 GMT

Reo Plastics, Inc. (OTCID:REOP) ($71.35; $31.7M market cap) announced Q1 2027 results:

Q1 sales of $16.63 million vs. $14.39 million in the prior year
Q1 2027 EPS: $3.72 vs. $2.14 in the prior year
Gross profit increased 45.4% to $3.02 million, with gross margin expanding to 18.2% from 14.4%.
Operating cash flow was negative $590,031 versus positive $4.07 million, primarily amid higher receivables and inventories.

Our Quick Take:

Strong quarter. The drivers are hard to read because management only releases the financials, but gross margin expansion was clearly a big contributor to the swing in EPS.

Gross margin expanded from 14.4% a year ago to 18.2% this quarter. We don't have an explanation for the move, but a few things are worth noting:

The expansion may have been driven by a change in product mix, though we can't confirm this.
It could also reflect efficiency gains from automation capex. We think this is feasible because D&A stood at $473K this period against roughly $1.0M of capex, implying $0.5M of expansion capex, potentially the automation spend in question.

Overall, a very strong quarter, but with only the financials to go on, it's impossible to get a firm read on the drivers.

Reo Plastics, Inc. provides plastic injection molding, tooling, automation, assembly, and value-added manufacturing services for a wide range of industrial, consumer, and medical applications.

Research

Wed, 22 Jul 2026 16:52:41 GMT

Reo Plastics, Inc. (OTCID:REOP) ($54.50; $24.3M market cap) reported fiscal year 2026 results:

Q4 2026 sales of $15.7 million vs. $14.4 million in the prior year
Q4 2026 EPS: $2.95 vs. $2.75 in the prior year
Fiscal 2026 sales of $58.1 million vs. $51.0 million in the prior year
Fiscal 2026 EPS: $9.36 vs. $6.54 in the prior year

Our Quick Take:

REOP does not issue press releases, so we cannot really get a good insight into what management is thinking. That said, the financials speak for themselves: strong quarter. Our one concern is that the easy EPS comps are behind us, so growth will likely slow from here. Even so, the stock is cheap at a trailing P/E of 5.8x.

We also want to track the story very closely because part of the past expansion initiatives included putting the company in a better position to sell more products to its current customers, as well as expand into other markets.

In December 2025, MS Microcaps contributed an article outlining its investment thesis for REOP. It said the company’s expanded manufacturing capacity had created room for continued revenue growth. It also believed that stable overhead could allow higher sales to produce meaningful operating leverage and eventually support a valuation re-rating. The expansion was also expected to help REOP sell more products to existing customers and move into new markets.

REO Plastics is a family-owned custom plastic injection molding company across industries like electronics, healthcare, and industrial products.

Research

Mon, 08 Dec 2025 05:00:00 GMT

Reo Plastics, Inc. (OTC:REOP) ($60.00; $26.7M market cap) announced Q2 2026 results:

Q2 2026 sales of $14.3 million vs. $13.4 million in the prior year
Q2 2026 EPS: $2.32 vs. $1.71 in the prior year

Our Quick Take:

Results were released Friday during the trading day only via the OTC quarterly report. The company does not issue press releases.

This marks the 6th straight quarter of strong growth for the company, with 6-month EPS of $4.46.

With the stock trading below book value of $69.00 and an annual run-rate P/E of 6.4x, we view the shares as still being very cheap, even though they are trading at a new 52-week high.

We are excited to see if recent capacity expansions will translate into accelerated growth and continued operating leverage.

If all goes well, REOP will join Mueller (Paul) Co. (OOTC:MUEL) and CRAWA as illiquid stocks on the OTC that were trading at value-trap valuations and later experienced sharp upward revisions in valuation multiples, as the value-trap labels were eventually “removed.”

Please be aware that the stock is on one of the more illiquid stocks in our coverage universe.

Reo Plastics, Inc. provides plastic injection molding, tooling, automation, assembly, and value-added manufacturing services for a wide range of industrial, consumer, and medical applications