| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 25.15 | 62775 |
| Intrinsic value (DCF) | 2.80 | 6900 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 0.10 | 150 |
Reklaim Ltd. (TSXV: MYID) is a pioneering consumer data and privacy technology company headquartered in Toronto, Canada, operating in the high-growth data privacy and compliance sector. The company has developed a unique dual-sided platform that serves both consumers and enterprises. For consumers, Reklaim provides transparency and control over their personal data through identity verification tools that reveal what information has been collected and sold by data brokers, complemented by privacy protection services including data breach monitoring and VPN services. For businesses, Reklaim offers compliant, verified first-party data to brands, agencies, and data companies seeking ethically sourced consumer information in an increasingly regulated privacy landscape. Operating in both Canada and the United States, Reklaim addresses the critical market need for privacy-compliant data solutions following the implementation of regulations like GDPR, CCPA, and PIPEDA. The company's innovative approach positions it at the intersection of data analytics and privacy technology, serving the growing demand for transparent data practices while enabling legitimate marketing and analytics use cases.
Reklaim presents a high-risk, high-potential investment opportunity in the emerging privacy-tech space. The company achieved profitability in FY2024 with net income of CAD$373,353 on revenue of CAD$5.08 million, demonstrating its ability to monetize its unique data platform. Positive operating cash flow of CAD$223,617 and a reasonable cash position of CAD$587,717 provide some financial stability. However, investors should note the company's micro-cap status (CAD$10.1 million market cap) and trading on the TSX Venture Exchange, which typically carries higher volatility and liquidity risks. The negative beta of -0.138 suggests the stock may move counter to broader market trends, potentially offering diversification benefits but also indicating unusual trading patterns. The absence of debt and dividend payments reduces financial risk, but the company's success is heavily dependent on continued regulatory tailwinds favoring privacy-focused data solutions and its ability to scale against larger competitors in the crowded data and privacy technology market.
Reklaim competes in the fragmented privacy technology and compliant data marketplace, leveraging its unique consumer-centric model as a key differentiator. The company's competitive advantage stems from its dual-platform approach that directly engages consumers while serving enterprise data needs, creating a virtuous cycle where consumer participation enhances data quality and compliance. This model addresses growing regulatory requirements for explicit consumer consent and transparency, positioning Reklaim favorably compared to traditional data brokers that face increasing scrutiny. However, the company operates at a significant scale disadvantage compared to established players in both the data analytics and privacy technology sectors. Reklaim's focus on first-party, compliant data is strategically sound given regulatory trends, but execution risk remains high as the company must simultaneously attract sufficient consumer participation to build valuable data assets while convincing enterprises to adopt its platform over more established alternatives. The company's technology stack, including browser extensions and identity verification tools, provides technical barriers to entry, but sustained competitive advantage will depend on network effects – achieving critical mass on both sides of its platform. Reklaim's Canadian origins may provide regulatory familiarity advantages in Commonwealth jurisdictions, but expansion into larger markets like the US requires competing against well-funded incumbents with broader data sets and existing enterprise relationships.