Rectitude Holdings Ltd Ordinary Shares (RECT): fair value, margin of safety and Wheel Score

Is RECT undervalued?

At 1.24 (close of 16 Oct 2026), RECT trades 65% below the GLS average fair value of 3.59. That average comes from 7 models run on the latest filings, and 7 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Rectitude Holdings Ltd Ordinary Shares the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 7 models disagree widely: Lynch gives 1.34 while GLS Growth gives 9.17. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files RECT under High Yield Income: a dividend yield above 4%.

Nine valuation models for RECT

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

Financial health is weak: RECT passes 4 of the nine Piotroski tests. Our screens drop the stock at the health rule; a low score is often the reason a stock looks cheap on the valuation models. The GLS Moat score is low at 1.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are moderate - ROIC 9.7%, ROE 12.8%, ROA 7.4% - with debt at 0.33 times equity and negative free cash flow.

The dividend yield is high at 8.06% (payout ratio 0%). A yield this size is often the market's way of pricing a risk to the payout, so the health score and cash flow matter more than usual. Revenue comes mainly from Other Operating 100% (fiscal year FY2026).

Institutional ownership scores 1/10, insider activity 5/10 and Congressional trading 5/10 on the GLS smart-money scales.

Wheel Score 39: No options

RECT has no listed options in the nightly snapshot, so there is nothing to sell and the stock cannot be wheeled however good the business; the Wheel Score is capped at 39 and shown as "No options" (39 here). The valuation and quality numbers still apply to owning the shares outright.

Volume runs at 4k shares a day on a market cap of $19M, with a beta of 1.04; the Stability part of the Wheel Score gives that 6 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

No upcoming earnings date is recorded for RECT in the nightly calendar.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Industrial - Distribution

The 12 companies below are the closest to Rectitude Holdings Ltd Ordinary Shares by market cap within the Industrial - Distribution industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

⚖ Compare RECT with 7 of them   All Industrials stocks →