Latest Ratios: P/E Ratio 10.2x · EV/EBITDA 6.2x · ROE 13.7%. (2022–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Market Cap | $18M | $54M | — | — | — |
| Enterprise Value | $20M | $57M | — | — | — |
| P/E Ratio → | 10.23 | 25.00 | — | — | — |
| P/S Ratio | 0.54 | 1.24 | — | — | — |
| P/B Ratio | 0.90 | 2.20 | — | — | — |
| P/FCF | — | — | — | — | — |
| P/OCF | 118.64 | 272.11 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| EV / Revenue | — | 1.29 | — | — | — |
| EV / EBITDA | 6.23 | 13.65 | — | — | — |
| EV / EBIT | 11.53 | 21.25 | — | — | — |
| EV / FCF | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Gross Margin | 33.7% | 33.7% | 35.6% | 29.7% | 29.3% |
| Operating Margin | 5.1% | 5.1% | 10.1% | 12.7% | 8.4% |
| Net Profit Margin | 5.1% | 5.1% | 8.1% | 10.4% | 7.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| ROE | 13.7% | 13.7% | 46.7% | 27.2% | 22.0% |
| ROA | 5.7% | 5.7% | 13.3% | 10.4% | 8.2% |
| ROIC | 8.3% | 8.3% | 27.8% | 15.8% | 11.9% |
| ROCE | 8.4% | 8.4% | 26.7% | 21.2% | 16.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Debt / Equity | 0.35 | 0.35 | 1.12 | 0.63 | 0.80 |
| Debt / EBITDA | 2.10 | 2.10 | 1.57 | 1.28 | 2.10 |
| Net Debt / Equity | — | 0.08 | 0.68 | 0.42 | 0.68 |
| Net Debt / EBITDA | 0.49 | 0.49 | 0.96 | 0.85 | 1.78 |
| Debt / FCF | — | — | 1.38 | 1.33 | 5.64 |
| Interest Coverage | 13.25 | 13.25 | 20.34 | 33.56 | 21.02 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Current Ratio | 2.26 | 2.26 | 1.86 | 1.70 | 1.65 |
| Quick Ratio | 1.64 | 1.64 | 1.37 | 1.21 | 1.10 |
| Cash Ratio | 0.55 | 0.55 | 0.27 | 0.21 | 0.11 |
| Asset Turnover | — | 1.00 | 1.21 | 1.27 | 1.18 |
| Inventory Turnover | 3.83 | 3.83 | 4.26 | 4.43 | 3.75 |
| Days Sales Outstanding | — | 108.28 | 105.96 | 193.40 | 114.95 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — |
| Payout Ratio | — | — | 59.6% | 53.5% | 45.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 |
|---|---|---|---|---|---|
| Earnings Yield | 9.8% | 4.0% | — | — | — |
| FCF Yield | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $14M | $13M | $15M | $13M |
Singapore construction sector concentration
Based on current market data, RECT trades at a P/E of 9.70 and an EV/EBITDA of 5.93, suggesting that investors are pricing in significant cyclical risk relative to broader industrial peers despite the company's proprietary brand portfolio and its role in mandatory safety compliance.
The current valuation multiples appear to reflect a market skepticism regarding the sustainability of earnings in a construction-dependent model. Investors should monitor whether this discount persists as the company matures as a Nasdaq-listed entity or if it represents a structural mispricing of its regulatory-driven moat.
As reported in financial statements, RECT's ROIC has fluctuated significantly, peaking at 11.7% in 2024Q2 before declining to 6.3% in 2026Q2, which indicates that the company is struggling to consistently compound capital returns amidst its volatile transactional revenue cycle and shifting operational overhead.
The variability in ROIC suggests that management's capital allocation is highly sensitive to the timing of infrastructure projects in Singapore. Without more stable margins, the company may find it difficult to generate sustained value for shareholders, as returns remain tethered to the cyclical nature of its primary market.
According to historical data, RECT's cash conversion cycle has been highly unstable, ranging from 42 days in 2024Q2 to 62 days in 2026Q2, highlighting the operational challenges of managing inventory and receivables within the Singaporean construction market during periods of fluctuating demand.
The widening of the cash conversion cycle suggests that the company is facing increased pressure to extend credit to customers or is struggling to optimize its inventory turnover. This inefficiency directly impacts cash flow, necessitating a closer look at the company's ability to manage its working capital effectively.
Based on recent filings, RECT has maintained a disciplined debt-to-equity ratio of 0.35 as of 2026Q2, which represents a significant improvement from the 1.12 ratio observed in 2024Q4, indicating a strategic shift toward reducing financial risk in a highly cyclical and sensitive industrial environment.
The company's low leverage profile appears to be a deliberate defensive strategy, providing a necessary cushion against the volatility inherent in the Singaporean construction sector. This conservative stance may limit growth potential but serves to protect the balance sheet from interest rate shocks and liquidity constraints.
The market frequently misapplies generic industrial distribution valuation multiples to RECT, failing to account for the regulatory-driven nature of its proprietary safety brands which creates a more durable, compliance-based earnings stream than traditional commodity hardware distributors typically exhibit in the current competitive landscape.
Investors should prioritize evaluating the company based on its proprietary brand mix and regulatory capture rather than simple P/S or P/E ratios. Using standard distribution metrics obscures the value of the company's safety certifications, which act as a barrier to entry that generic distributors cannot easily replicate.
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Quick answers to the most common questions about buying RECT stock.
Rectitude Holdings Ltd Ordinary Shares's current P/E ratio is 10.2x. The historical average is 25.0x.
Rectitude Holdings Ltd Ordinary Shares's current EV/EBITDA is 6.2x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 13.7x.
Rectitude Holdings Ltd Ordinary Shares's return on equity (ROE) is 13.7%. The historical average is 27.4%.
Based on historical data, Rectitude Holdings Ltd Ordinary Shares is trading at a P/E of 10.2x. Compare with industry peers and growth rates for a complete picture.
Rectitude Holdings Ltd Ordinary Shares has 33.7% gross margin and 5.1% operating margin.
Rectitude Holdings Ltd Ordinary Shares's Debt/EBITDA ratio is 2.1x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.