Rectitude Holdings Ltd Ordinary Shares (RECT)

FairStock Score: 59/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that are understandable, durable, and bought at a sensible price. Rectitude Holdings is understandable enough: it wholesales safety equipment in Singapore, including protective clothing, gloves, footwear, fall-arrest gear, fire extinguishers, and traffic products, with 144 employees. But I see little evidence of a moat. Wholesale distribution of safety supplies is competitive, and a $20.6M market cap offers no obvious pricing power. The numbers are mixed. FairStock's calculated P/E is 6.35 and P/B is 0.84 at the 2026-10-13 close of $1.27. The dividend yield is 7.43%, and ROE is 13.60%, which sounds respectable. But ROCE is only 5.77%, and debt-to-equity is 0.33, so the business is not earning high returns on total capital. The Piotroski F-Score is 3/9, and the Altman Z-Score is 1.60, both signals of financial fragility. The Graham Number of $2.95 gives a margin of safety of 56.95%, but Graham also wanted stable earnings and a long record; here there are only 0 years of filed results, so no Lynch category can be computed and growth is N/A. So this is not a wonderful business at a fair price. It could be a statistically cheap asset play if book value is real and earnings hold. But weak financial-health scores, low ROCE, no filed history, and a 52-week range of $0.96 to $4.45 argue for caution. I would want several years of filed results before trusting the apparent discount.

In plain English: Rectitude Holdings sells safety equipment like protective clothing, gloves, footwear, and fire-safety products in Singapore. Its profits and returns look modest, and some financial-health checks are weak, so the business does not look especially strong. Still, at $1.27 the shares look cheap compared with book value and a simple valuation check, though the lack of a long filed history makes that cheapness uncertain.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer