olivLaw · US equity research
Rectitude Holdings Ltd. RECT
Cutlery, Handtools & General Hardware · SIC 3420 · Vertical: Cutlery, Handtools & General Hardware (SIC 3420)
Rectitude Holdings Ltd. is a Singapore-based distributor of safety equipment and hardware with operations across Southeast Asia, reporting for fiscal 2026 revenue of 51.3 million S$. The company grew sales by 17.1%, and its relevance lies in its focus on demand from construction and the infrastructure, marine and oil and gas industries.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, Rectitude Holdings Ltd. (RECT) stock was 1.27 USD (+0.79% on the day), with market capitalisation 18.4 m USD, P/E 6.7 on diluted EPS of 0.19 USD over the last 12 months, dividend yield 9.35%, beta 0.24, 52-week range 1.08–2.23 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 49.9
- neutral
- Bollinger (20, 2)
- 1.18 – 1.36
- in the upper half of the band · %B 0.51 · band width 14.5%
- SMA 50 / 200
- 1.29 / 1.34
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -0.01 / -0.01
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +0.8% | −1.1% | +1.9 pp | — |
| 3 months | −0.8% | −0.5% | −0.3 pp | — |
| 6 months | −3.8% | +4.4% | −8.2 pp | — |
| Year to date | −27.8% | +12.3% | −40.2 pp | — |
| 1 year | −40.7% | +13.5% | −54.2 pp | +56.3% |
| 3 years | unavailable | +76.4% | unavailable | +36.3% |
| 5 years | unavailable | +63.7% | unavailable | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 2-quarter history (min 6.3, median 19.8, max 33.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|
| Revenue | unavailable | unavailable | 30.7 m | 32.6 m | 39.7 m |
| Revenue YoY | unavailable | unavailable | unavailable | +6.1% | +22.0% |
| Net income | unavailable | unavailable | 2.5 m | 1.7 m | 2.8 m |
| Net income YoY | unavailable | unavailable | unavailable | −33.2% | +67.2% |
| Diluted EPS | unavailable | unavailable | 0.20 | 0.12 | 0.19 |
| Diluted EPS YoY | unavailable | unavailable | unavailable | −40.0% | +58.3% |
| net % | unavailable | unavailable | 8.1% | 5.1% | 7.0% |
| Free cash flow | unavailable | unavailable | 2.9 m | -309.2 k | -1.8 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 31 Mar 2026
- Cash
- 4.7 m USD
- Financial debt
- 3.1 m USD
- Net debt
- -1.6 m USD
- Equity
- 21.7 m USD
- Total assets
- 37.7 m USD
- Debt / equity
- 0.14x
- Current ratio
- 2.53x
- ROE
- 13.9%
- ROA
- 7.9%
- FCF margin
- -4.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 30.7 m | 32.6 m | 39.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Cost of revenue | 19.8 m | 21.6 m | 27.0 m | SEC (XBRL)· 30 Jul 2026verified |
| Gross profit | 10.9 m | 11.0 m | 12.8 m | SEC (XBRL)· 30 Jul 2026verified |
| Research & development | 56.7 k | 116.7 k | — | SEC (XBRL)· 31 Jul 2025verified |
| Operating income | 3.1 m | 1.7 m | 3.3 m | SEC (XBRL)· 30 Jul 2026verified |
| Depreciation & amortisation | 397.8 k | 453.5 k | 528.9 k | SEC (XBRL)· 30 Jul 2026verified |
| EBITDA | 3.5 m ≈ | 2.1 m ≈ | 3.8 m ≈ | SEC (XBRL)· 30 Jul 2026derived |
| Interest expense | 159.2 k | 149.2 k | 135.8 k | SEC (XBRL)· 30 Jul 2026verified |
| Pre-tax income | 3.1 m | 1.8 m | 3.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Income tax | 587.9 k | 163.6 k | 899.4 k | SEC (XBRL)· 30 Jul 2026verified |
| Net income | 2.5 m | 1.7 m | 2.8 m | SEC (XBRL)· 30 Jul 2026verified |
| Diluted EPS | 0.20 | 0.12 | 0.19 | SEC (XBRL)· 30 Jul 2026verified |
| Weighted average diluted shares | 12.5 m | 14.1 m | 14.5 m | SEC (XBRL)· 30 Jul 2026verified |
| Dividend per share | 0.12 | — | — | SEC (XBRL)· 26 Jul 2024derived |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 2.6 m | 5.2 m | 4.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Receivables | 8.5 m | 8.6 m | 12.0 m | SEC (XBRL)· 30 Jul 2026verified |
| Inventories | 4.6 m | 5.6 m | 6.3 m | SEC (XBRL)· 30 Jul 2026verified |
| Current assets | 17.5 m | 20.4 m | 26.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Property, plant & equipment, net | 4.3 m | 4.8 m | 5.8 m | SEC (XBRL)· 30 Jul 2026verified |
| Total assets | 25.4 m | 32.5 m | 37.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Accounts payable | 4.8 m | 5.6 m | 6.9 m | SEC (XBRL)· 30 Jul 2026verified |
| Short-term debt | 444.4 k | — | — | SEC (XBRL)· 26 Jul 2024verified |
| Long-term debt | 2.7 m | 2.4 m | 3.1 m | SEC (XBRL)· 30 Jul 2026verified |
| Current liabilities | 9.4 m | 9.0 m | 10.6 m | SEC (XBRL)· 30 Jul 2026verified |
| Total liabilities | 14.6 m | 14.1 m | 15.9 m | SEC (XBRL)· 30 Jul 2026verified |
| Equity | 10.8 m † | 18.4 m † | 21.7 m † | SEC (XBRL)· 30 Jul 2026verified |
| Shares outstanding at year end | 12.5 m | 14.5 m | 14.5 m | SEC (XBRL)· 30 Jul 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 3.1 m | 148.9 k | -1.7 m | SEC (XBRL)· 30 Jul 2026verified |
| Capex | 174.7 k | 458.0 k | 153.0 k | SEC (XBRL)· 30 Jul 2026verified |
| Free cash flow | 2.9 m ≈ | -309.2 k ≈ | -1.8 m ≈ | SEC (XBRL)· 30 Jul 2026derived |
| Investing cash flow | -170.9 k | -4.3 m | 1.8 m | SEC (XBRL)· 30 Jul 2026verified |
| Financing cash flow | -2.2 m | 6.5 m | -569.0 k | SEC (XBRL)· 30 Jul 2026verified |
| Dividends paid | 1.5 m | — | — | SEC (XBRL)· 26 Jul 2024verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
Risk
Valuation
olivLaw classification
Score: 63 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 18.4 m USD
Key indicators
Coverage and freshness
Score by group
- Quality40
- Valuation61
- Balance sheet92
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 1.56 – 4.36 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · the base of the ratio is not positive
- Peers: EV/EBITDA3.53 – 3.76 (Mid 3.63)5 companies used · median multiple 13.3x · quartiles 12.9x – 13.8xACU, EML, HLMN, SNA, SSD
- Peers: P/E4.04 – 4.36 (Mid 4.17)6 companies used · median multiple 21.9x · quartiles 21.2x – 22.9xACU, CIX, EML, SNA, SSD, SWK
- Dividend discount (DDM)1.56 – 2.10 (Mid 1.79)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 63/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 13.9% | 50 (vs peers) | 14% |
| Net margin · Quality | 7.0% | 63 (vs peers) | 9% |
| FCF conversion · Quality | -65.5% | 0 (on a fixed band) | 9% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | -0.4x | 83 (vs peers) | 14% |
| Interest coverage · Balance sheet | 24.3x | 100 (on a fixed band) | 9% |
| Current ratio · Balance sheet | 2.5x | 100 (on a fixed band) | 6% |
| P/E (TTM) · Valuation | 6.7x | 88 (vs peers) | 14% |
| EV/EBITDA · Valuation | 4.4x | 83 (vs peers) | 14% |
| FCF yield · Valuation | -9.9% | 0 (on a fixed band) | 11% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet92/100 · 3/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality40/100 · 3/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation61/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Rectitude Holdings Ltd (RECT). Latest full fiscal year: 2026; data up to 2026-03-31.
Figures computed from the financial statements: revenue 39.7 m USD in 2026; YoY growth 22.0%; net margin 7.0%; ROE 13.9%; net debt/EBITDA -0.4x.
The estimated value range is 3.53–3.76 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 3.63 USD, the price of 1.27 USD leaves a potential of 185.5% (value / price − 1) and a margin of safety of 65.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 63/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net debt / EBITDA: -0.4x
- Interest coverage: 24.3x
- Current ratio: 2.5x
- P/E (TTM): 6.7x
- EV/EBITDA: 4.4x
- The price is below the estimated value range
What contradicts it
- FCF conversion: -65.5%
- FCF yield: -9.9%
Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Cutlery, Handtools & General Hardware (SIC 3420) · same industry (4-digit SIC) · compared with 8 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| SNASnap-on Inc | 19.0 bn | 19.2 | 17.0% | 19.2% | unavailable | +8% / +34% |
| SWKStanley Black & Decker, Inc. | 17.6 bn | 21.2 | 9.4% | 5.5% | unavailable | +65% / +30% |
| SSDSimpson Manufacturing Co., Inc. | 8.4 bn | 22.4 | 18.7% | 15.6% | +4.5% | +23% / +23% |
| HLMNHillman Solutions Corp. | 1.7 bn | 68.6 | 2.0% | 1.5% | +5.4% | +0% / +20% |
| CIXCompx International Inc | 457.6 m | 23.1 | 16.3% | 14.0% | +8.5% | +65% / +58% |
| ACUAcme United Corp | 271.2 m | 29.7 | 8.4% | 4.6% | +1.1% | +91% / +97% |
| LCUTLifetime Brands, Inc. | 204.4 m | 6.2 | 15.8% | 4.8% | −5.1% | +133% / +38% |
| EMLThe Eastern Company | 173.4 m | 21.4 | 6.3% | 3.4% | unavailable | +48% / +59% |
| RECTRectitude Holdings Ltd | 18.4 m | 6.7 | 13.9% | 7.0% | +22.0% | −41% / unavailable |
1- and 3-year price returns: for RECT from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 0.84 Total return -34% · Per year -34% | 1.48 Total return 16% · Per year 16% | 2.21 Total return 74% · Per year 74% |
| 3 years | 0.99 Total return -22% · Per year -8% | 1.95 Total return 54% · Per year 15% | 3.19 Total return 151% · Per year 36% |
| 5 years | 1.18 Total return -7% · Per year -1% | 2.58 Total return 103% · Per year 15% | 4.59 Total return 261% · Per year 29% |
- Exit P/E± 0.49
- Net margin± 0.34
- Annual revenue growth± 0.25
- Annual dilution± 0.03
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 6-K (02 Nov 2026), 6-K (28 Oct 2026), 6-K (18 Sept 2026), 6-K (05 Aug 2026).
In brief
Rectitude Holdings Ltd. is a Singapore-based distributor of safety equipment and hardware with operations across Southeast Asia, reporting for fiscal 2026 revenue of 51.3 million S$ 1. The company grew sales by 17.1% 1, and its relevance lies in its focus on demand from construction and the infrastructure, marine and oil and gas industries 1.
SWOT
Strengths
Weaknesses
Opportunities
Risks
- Product liabilityhigh
If distributed equipment is found defective or causes injury, the company could face claims, and insurance might not fully cover the losses 1.
- Supplier dependencemedium
Operational or financial problems at third-party manufacturers could affect deliveries and customer relationships 1.
- Geographic concentrationmedium
Almost all revenue comes from Singapore, making the company sensitive to one market 1.
- Shareholder dilutionmedium
The equity incentive plan could lead to dilution, as equity financing arrangements have carried a similar risk 1.
- Finance leadership changelow
The departure of the chief financial officer and an interim appointment could create governance and reporting challenges 1.
Investment thesis
What would need to be true (bull case)
- Revenue grew in fiscal 2026 and net profit rose sharply, suggesting construction demand is supporting the business 1.
- The branch network and long-standing customer relationships could support market share in Singapore 1.
- Expansion into new lines and Southeast Asian markets could diversify revenue sources 1.
What to watch
- Trend in gross margin and procurement costsnext 10-K
- Share of revenue from outside Singapore2027
- Implementation of the equity incentive plan and any dilution2027
- Appointment of a permanent chief financial officernext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 30 Jul 2026; since then the company filed 6-K (02 Nov 2026), 6-K (28 Oct 2026), 6-K (18 Sept 2026), 6-K (05 Aug 2026).
The business
The company supplies personal protective equipment such as protective clothing, gloves, safety footwear and fall arrest systems, along with fire extinguishers, traffic products and industrial hardware for construction sites 1. Operations run through three Singapore subsidiaries, RPL, PTH and ALS, transferred to the company in the January 2024 reorganization 1. Products are sold through distributors and end users, and also via e-commerce platforms such as Shopee and Lazada 1.
For fiscal 2026 revenue was 51.3 million S$ and net profit was 3.6 million S$ 1. Gross margin fell to about 32% from 34%, which the company attributed to competitive pricing 1. Selling and marketing expenses rose 11.0% 1, while general and administrative expenses fell 8.6% 1.
Sales are heavily concentrated in Singapore, which generated 96.0% of revenue in fiscal 2026 1. The company adopted a 2026 equity incentive plan, and management indicated it could expand into new lines such as green energy storage if market conditions are favourable 1.
Segments
Market context
The company operates in the safety equipment market in Singapore and Southeast Asia, which the filing describes as growing and increasingly competitive 1. Its main customers come from infrastructure, construction, marine, and oil and gas sectors 1.
Competition includes online and offline merchants targeting the same customers, and some rivals could have greater financial resources 1. The company relies on its network of twelve Singapore branches to stay competitive 1.
Trends
- Singapore construction activitytailwind
Demand from construction projects supported sales growth in fiscal 2026 1.
- Margin pressureheadwind
Competitive pricing reduced gross margin, and procurement costs could rise if raw material prices change 1.
- Workplace safety regulationtailwind
Singapore codes of practice set precise standards for protective equipment, which could favour certified suppliers 1.
- Dilution from equity arrangementsmixed
The equity incentive plan and the standby equity arrangement could dilute existing shareholders, although the arrangement was terminated in October 2025 1.
Competitive position
The company competes with online and offline merchants for the same customers, and some competitors may have greater financial resources or distribution reach 1. Its stated advantages include stable supplier relationships, its branch network and its broad product range 1.
The company believes it can remain competitive through pricing, quality and local availability, but an ineffective pricing strategy could weaken results 1.
- Online merchants on e-commerce platforms
Sellers of safety equipment on Shopee and Lazada targeting the same end users 1.
- Offline safety equipment retailers
Physical stores competing for the same construction and industrial customers 1.
- Better-funded suppliers
Rivals that could have larger marketing and distribution resources, according to the filing 1.
- Regional distributors in Southeast Asia
Local players in markets such as Malaysia, Indonesia and Vietnam serving the same industrial sectors 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report (foreign issuer)02 Nov 2026
- Current report (foreign issuer)28 Oct 2026
- Current report (foreign issuer)18 Sept 2026
- Current report (foreign issuer)05 Aug 2026
- Annual report (foreign issuer)30 Jul 2026
- Current report (foreign issuer)20 Mar 2026
- Current report (foreign issuer)10 Mar 2026
- Current report (foreign issuer)27 Oct 2025
- Current report (foreign issuer)03 Oct 2025
- Current report (foreign issuer)08 Sept 2025
Sources
- [1] Form 20-F, fiscal year ended 2026-03-31 · SEC / Rectitude Holdings Ltd. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.