WinstonWınston
Rectitude Holdings Ltd Ordinary Shares logo

Rectitude Holdings Ltd Ordinary Shares

RECT
49
Industrial - Distribution · Industrials
Price
$1.27
+0.03 (+2.10%)
Market Cap
$18.4M
Exchange
NASDAQ Capital Market
Winston Score
49
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+8.9% over 3y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 12.5M (2022) → 13.6M (2025)

Rectitude Holdings Ltd is an industrial distribution company that sources and supplies a range of industrial products to businesses and commercial customers. These products typically include tools, equipment, safety gear, and maintenance supplies used by manufacturers, contractors, and other industrial end users. The company operates within the broader industrial distribution sector, acting as a middleman between product manufacturers and the businesses that need those goods.

Rectitude generates revenue by buying products in bulk and reselling them at a markup, with a gross margin around 31% suggesting a modest but typical spread for this type of business. The company appears to be relatively small, with a market cap near zero indicating it is a micro-cap or early-stage public entity. Industrial distributors generally compete on pricing, product availability, and customer relationships, making scale and supplier access key advantages. The main risk for Rectitude is its small size, which limits bargaining power with suppliers and makes it harder to compete against larger, well-established distributors.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-14.2% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+70.7% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$156,947/ year

Rising (+105% vs prior year)

0.4% of revenue

Below sector average (4%)

R&D investment increasing — building for the future

Insider Activity

83.7%ownership

Insiders own a meaningful stake in the company

Cash Runway

~17 months

$8M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Adequate runway but may need to raise capital within 2 years

Revenue declining

Rectitude Holdings Ltd Ordinary Shares's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Gross Margin
28.7%
Modest — 28.7% gross margin
Operating Margin
11.2%
Modest — 11.2% operating margin
ROCE
8.4%
Below par — 8.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Growth

Sales YoY
+54.6%
Fast-growing sales (54.6% YoY)
EPS YoY
+3.8%
Modest earnings growth (3.8% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Cash Flow

Cash Conversion
-29%
Weak — only -29% of profit becomes cash
FCF Margin
-2.6%
Burning cash (-2.6%)

Free cash flow is negative. They are burning cash, not generating it.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Stability

Debt / Equity
0.20
Conservative — low debt load (0.20)
Interest Cover
19.34x
Comfortably covers interest (19.3x)

Interest coverage above 8. Profits cover interest many times over.

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Valuation

P/E Ratio (TTM)
3.6x
Attractive valuation — P/E 3.6

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

Full breakdown available with your free trial

See every metric, trend, and what it means for this stock.

Try free

Dividends

Not applicable for this business.
🔒 See full fundamentals and if they are improving or declining — click here for your free trial now.
Start free trial