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Rectitude Holdings (RECT) Fair Value & Analysis

Consumer Cyclical · US · Market cap $18.6M

RH Rectitude Holdings logo Rectitude Holdings RECT · US
Price$1.24
Fair Value$2.03
Upside+63.7%
Quality35/100
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Expensive Growth
Thin margins · 8.1% net margin
Low debt · negative free cash flow
Ranks above peers (11/12)
Moderate moat 48/100
Evidence: High Range $1.52 – $2.54 Share as image

Fair value as of: Jul 25, 2026

From 15 valuation models · updated 16 days ago

Fair value updated Jul 25, 2026, revised from $2.02 to $2.03 (+0.5%) since Jun 25, 2026. Share price −1.6% over the past month.

Below-average quality, screening 64% undervalued on our models.

What matters now

  • The large discount to fair value meets weak quality (35/100). That raises the risk this is a value trap rather than a bargain.
  • The price is below even our cautious bear case ($1.52). The market is more pessimistic than our downside scenario.
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Price vs Fair Value (2 years)

$7.42 $1.08 Fair Value $2.03 Jun 2024 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 25, 2026.

How to read this chart

26‑month range $1.08 – $7.42 · fair‑value band $1.52 – $2.54 · the $1.24 price screens below the $2.03 fair value. Dashed = 300-day average. As of Jul 25, 2026.

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Analysis

Rectitude Holdings (RECT) currently trades at $1.24, while our model-based Fair Value estimate is $2.03, implying the stock looks roughly 63.7% undervalued today. The Quality Score stands at 35/100 (below-average quality), in the Consumer Cyclical sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Rectitude Holdings generated revenue of $46.2M at a net margin of 8.1%. Revenue grew 10.8% year over year. It earns a return on equity of 14.9%. Net debt stands at $2.0M. Fundamentals as of Jul 25, 2026

Our scenario range runs from $1.52 (bear case) to $2.54 (bull case); at $1.24, the current price sits below that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 75% below its 52-week high and 29% above its 52-week low, currently below its 200-day average. For context, the median of 10 Consumer Cyclical peers we cover trades at -24% fair-value upside, at 64%, RECT screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Residual Income $1.31 $1.38 $1.44 76
ROIC Compounder $1.25 $1.37 $1.47 72
Growth-Adj P/E $2.93 $4.19 $5.45 68
All 15 models by family
DCF Models
Owner Earnings $2.95 $5.52 $9.97 31
Earnings-Based
Graham-Dodd $1.05 $7.25 $10.17 54
Lynch FV $2.14 $3.05 $3.97 50
PEG = 1.0 $2.14 $3.05 $3.97 46
EPV $1.25 $1.37 $1.47 59
Multiples
P/E Multiple $2.43 $3.24 $4.05 63
P/S Multiple $1.97 $2.62 $3.28 58
P/B Multiple $1.97 $2.62 $3.28 55
EV/EBIT $2.23 $2.89 $3.54 53
EV/EBITDA $3.05 $3.97 $4.90 54
EV/Revenue $1.67 $2.27 $2.87 43
Asset-Based
NCAV (Graham) $0.8500 $1.14 $1.71 50
Economic Profit
Residual Income $1.31 $1.38 $1.44 76
ROIC Compounder $1.25 $1.37 $1.47 72
Growth Earnings
Growth-Adj P/E $2.93 $4.19 $5.45 68

Widest divergence: DCF Models ($5.52) versus Asset-Based ($1.14). Highest evidence: Residual Income (76).

Key figures & financial health

Revenue (TTM) $46.2M
Revenue growth (YoY) +10.8%
Net margin 8.1%
Return on equity 14.9%
Free cash flow −$416K FY2025
P/E ratio 6.4
More key figures
Operating margin 11.2%
EPS (TTM) $0.2000
EPS growth (YoY) +125%
Net debt $2.0M FY2025

Figures from reported company fundamentals · as of Jul 25, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 35/100

Of which business quality 37 · Market factors (momentum, volatility) 7

Profitability 50
Margins and returns on capital today
Quality Growth 16
Are margins and returns improving?
Cashflow 7
Earnings quality: real cash, not paper profit
Fin. Strength 77
Balance sheet, leverage, solvency risk
Investment 33
Disciplined investing over empire-building
Low Volatility 0
Calm price path (market factor)
Momentum 14
Price trend over the last 3–12 months (market factor)
52W Momentum 4
Distance to the 52-week high (market factor)
Net Issuance 27
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Rectitude Holdings Ltd, an investment holding company, engages in the wholesale and supply of safety equipment in Singapore.

Full company description

Rectitude Holdings Ltd, an investment holding company, engages in the wholesale and supply of safety equipment in Singapore. The company offers personal protective clothing; hand gloves; step platform ladders; safety footwear; travel restraint and personal fall arrest equipment; portable fire extinguishers, firefighting equipment, and fire related safety products; traffic products; and industrial hardware tools, electrical products, and accessories. It sells its products under the D&D, SkyHawk, Super Sun, STRIKERS, Osprey, HORNET, and DADE brands. It serves wholesalers, distributors, and end users. Rectitude Holdings Ltd was founded in 1997 and is based in Singapore.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2025 · reported fiscal years

Rectitude Holdings reported revenue of $43.8M in FY2025 versus $29.8M in FY2022, a compound +13.7%/yr. Reported net income was $2.2M in FY2025, compounding +2.5%/yr from FY2022.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$43.8M
Latest YoY
+5.9%
Avg. growth/yr (3Y)
+13.7%
Revenue +13.7%/yr
FY22 $29.8M
FY23 $20.6M
FY24 $41.4M
FY25 $43.8M
Net income +2.5%/yr
FY22 $2.1M
FY23 $2.1M
FY24 $3.4M
FY25 $2.2M

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Cite: Fair Value Calculator (2026). "Rectitude Holdings Fair Value". https://www.fairvalue-calculator.com/stock/RECT

Peer Group

Specialty Retail · 221 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 35 · Bottom 25%
Fair Value upside +64% · Top 25%
Return on equity (TTM) 15% · Above median
Return on assets 5% · Above median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 11% · Top 25%
Revenue growth 11% · Above median
Debt / equity 0.11× · Lower than median

Valuation Multiples vs Specialty Retail median · lower = cheaper

P/E (TTM) 6.4× · Cheaper than 75% of peers
P/B 0.75× · Cheaper than median
P/S (TTM) 0.40× · Cheaper than median
EV/EBITDA 3.4× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 31
FUTURE 54 · sector 23
PAST 60 · sector 27
HEALTH 94 · sector 94
DIVIDEND 0 · sector 51

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Specialty Retail stocks, each showing price versus our Fair Value estimate (as of Jul 25, 2026).

Stock Price Fair Value vs Fair Value
Casey's General Stores, Inc CASY $827.04 $405.44 -51%
Williams-Sonoma, Inc WSM $222.84 $164.16 -26%
Ulta Beauty, Inc ULTA $479.57 $488.39 +2%
DICK'S Sporting Goods, Inc DKS $208.89 $181.10 -13%
Best Buy Co BBY $83.98 $109.12 +30%
China Tourism Group 601888 ¥52.90 ¥40.40 -24%
Tractor Supply Company TSCO $31.01 $35.52 +15%
Murphy USA Inc MUSA $618.57 $423.35 -32%
Five Below, Inc FIVE $197.71 $117.29 -41%
Taiwan Mobile Co 3045 110.50 TWD 80.98 TWD -27%

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Frequently asked questions

Is Rectitude Holdings (RECT) overvalued or undervalued?
As of Jul 25, 2026, our model estimates a fair value of $2.03 versus a price of $1.24, about +64% (undervalued).
What is the fair value of RECT?
Our model-based fair value for Rectitude Holdings is $2.03 (as of Jul 25, 2026), built from audited fundamentals. The current price is $1.24.
What is the quality score of RECT?
Rectitude Holdings has a Quality Score of 35/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rectitude Holdings (RECT)?
Rectitude Holdings reported trailing-twelve-month revenue of about $46.2M (latest available figure, as of Jul 25, 2026).
What is the net profit margin of RECT?
The net profit margin of Rectitude Holdings is about 8.1%, meaning it keeps roughly 8.1% of revenue as net income. Based on the latest reported figures.

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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