Rectitude Holdings Ltd (RECT) AI Stock Analysis
RECT AI stock analysis summary
AI ResearchRectitude Holdings Ltd (RECT) is a Singapore-based distributor of safety equipment and industrial hardware across Southeast Asia. The company generated $51.3M in trailing twelve months revenue with a trailing price-to-earnings ratio of 6.7x. While quarterly revenue expanded 23.5% year-over-year, free cash flow remained negative at -$1.8M in FY2026.
- Market cap
- $19.7M
- Revenue (TTM)
- $51.3M
- P/E
- 6.7x
- 1Y return
- -61.1% S&P 500 16.8%
- Avg. target
- —
Bull case
- Trailing price-to-earnings of 6.7x and enterprise value to EBITDA of 4.0x trade at substantial discounts to the median of its US-listed Consumer Cyclical peers.
- Latest quarterly revenue expanded 23.5% year-over-year, contributing to trailing twelve months revenue of $51.3M.
- The balance sheet maintains healthy short-term liquidity with a current ratio of 2.53 as of June 30, 2026.
Bear case
- Free cash flow remained negative at -$1.8M in FY2026 following -$415,675 in FY2025.
- The stock has dropped 61.1% over the past year and remains down 22.1% year-to-date.
- Net earnings fell 14.6% year-over-year in the latest quarter ending June 30, 2026.
What Rectitude does
Rectitude Holdings Ltd supplies safety equipment essential for industrial applications. Its offerings include personal protective clothing, hand gloves, safety footwear, and personal fall arrest systems. The company also supplies portable fire extinguishers, traffic safety items such as rubber speed humps, wheel stops, and wheel chocks, along with industrial tools and electrical hardware for construction sites. Headquartered in Singapore, Rectitude distributes its solutions through a network across Singapore, Brunei, Cambodia, Malaysia, Indonesia, and Vietnam. Key customers operate in infrastructure development, building construction, marine operations, oil and gas, and broader industrial markets.
Growth and profitability
Revenue grew at a four-year compound annual growth rate of 7.4% from FY2022 to FY2026. After jumping 100.7% to $41.4M in FY2024 and reaching $43.8M in FY2025, revenue contracted 9.4% to $39.7M in FY2026. Gross margin stood at 28.0% in FY2026, down from 33.7% in FY2025, while operating margin rose to 8.3%. Net income for FY2026 was $2.8M, yielding a 7.0% net margin. For the trailing twelve months ended June 30, 2026, revenue totaled $51.3M with an operating margin of 5.7% and diluted earnings per share of $0.19. In the latest quarter, revenue grew 23.5% year-over-year, while quarterly earnings declined 14.6%.
Balance sheet and cash flow
As of June 30, 2026, Rectitude held $4.7M in cash and short-term investments against $7.1M in total debt, leaving net debt at $2.4M. Shareholders' equity totaled $21.7M, and the debt-to-equity ratio was 0.33. The company maintained a current ratio of 2.53. Cash generation softened over recent years, with operating cash flow falling to -$1.6M and free cash flow to -$1.8M in FY2026. Capital expenditures in FY2026 were $152,824, while share count increased 16.0% over five years.
Valuation and performance
At $1.27 per share, Rectitude carries a market capitalization of $19.7M and an enterprise value of $22.1M. The stock trades at a trailing price-to-earnings ratio of 6.7x, below the median of 18.0x for its US-listed Consumer Cyclical peers. Its price-to-sales multiple is 0.4x versus the peer median of 0.7x, and enterprise value to EBITDA is 4.0x compared to 11.1x for peers. Over the past year, RECT shares fell 61.1%, trailing the S&P 500 (SPY) return of 16.8%.
RECT dividend
Rectitude features an annual forward dividend of $0.10, representing a dividend yield of 7.87%. Its last ex-dividend date was September 4, 2026.
What analysts expect
Wall Street coverage for Rectitude is limited, with no formal analyst rating counts or consensus target prices published. Consensus earnings projections and revision trends are not established for the company. Rectitude's next scheduled earnings release date is October 29, 2026.
Key risks and what to watch
- Cash flow generation weakened to -$1.6M in operating cash flow in FY2026, down from $200,134 in FY2025.
- Gross margins narrowed from 35.6% in FY2024 to 28.0% in FY2026.
- Total debt of $7.1M exceeds cash reserves of $4.7M, creating net debt of $2.4M.
- Insider ownership sits at 78.8%, concentrating voting power and leaving institutional ownership at just 0.2%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RECT AI stock analysis
This page is an AI-written research summary of Rectitude Holdings Ltd (RECT). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RECT income statement, RECT balance sheet, RECT key metrics, RECT chart. See the RECT stock overview for the latest quote and news.
RECT AI stock analysis FAQ
What does Rectitude Holdings Ltd do?
Rectitude Holdings Ltd is a Singapore-based supplier of industrial safety equipment, hardware tools, and fire protection equipment serving construction, marine, and oil and gas sectors across Southeast Asia.
What is Rectitude's dividend yield?
Rectitude has an annual forward dividend of $0.10, which corresponds to a dividend yield of 7.87% as of October 16, 2026.
How much debt does RECT have?
As of June 30, 2026, the company held $7.1M in total debt and $4.7M in cash and short-term investments, resulting in net debt of $2.4M and a debt-to-equity ratio of 0.33.
When is RECT's next earnings report?
The company's next earnings date is scheduled for October 29, 2026.