RECT (Rectitude Holdings) ROE %: 20.69% (As of Sep. 2025) — 14% Below Median

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RECT Rectitude Holdings Ltd RECT
21 GF Score
Price $1.41
! 2 Warning Signs
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What is Rectitude Holdings ROE %?

Rectitude Holdings RECT -0.01% 21 ROE % is 20.69% as of Sep. 2025, which is 14% below its 10-year median of 23.98. GuruFocus rates RECT with a GF Score™ of 21/100. The stock has 2 warning signs investors should review. Among 1,100 Retail - Cyclical companies, Rectitude Holdings ranks better than 73.18% on this metric.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Rectitude Holdings's annualized net income for the quarter that ended in Sep. 2025 was $4.10 Mil. Rectitude Holdings's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was $19.82 Mil. Therefore, Rectitude Holdings's annualized ROE % for the quarter that ended in Sep. 2025 was 20.69%.

The historical rank and industry rank for Rectitude Holdings's ROE % or its related term are showing as below:

RECT' s ROE % Range Over the Past 10 Years
Min: 11.39   Med: 23.98   Max: 38.21
Current: 15.04

During the past 4 years, Rectitude Holdings's highest ROE % was 38.21%. The lowest was 11.39%. And the median was 23.98%.

RECT's ROE % is ranked better than
73.18% of 1100 companies
in the Retail - Cyclical industry
Industry Median: 6.475 vs RECT: 15.04

Rectitude Holdings  (NAS:RECT) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=4.1/19.8155
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(4.1 / 38.106)*(38.106 / 35.4635)*(35.4635 / 19.8155)
=Net Margin %*Asset Turnover*Equity Multiplier
=10.76 %*1.0745*1.7897
=ROA %*Equity Multiplier
=11.56 %*1.7897
=20.69 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2025 )
=Net Income/Total Stockholders Equity
=4.1/19.8155
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (4.1 / 4.864) * (4.864 / 4.282) * (4.282 / 38.106) * (38.106 / 35.4635) * (35.4635 / 19.8155)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.8429 * 1.1359 * 11.24 % * 1.0745 * 1.7897
=20.69 %

Note: The net income data used here is two times the semi-annual (Sep. 2025) net income data. The Revenue data used here is two times the semi-annual (Sep. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Rectitude Holdings ROE % Related Terms


Rectitude Holdings ROE % Historical Data

* Premium members only.

The historical data trend for Rectitude Holdings's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rectitude Holdings ROE % Chart

Rectitude Holdings Annual Data
Trend Mar22 Mar23 Mar24 Mar25
ROE %
21.97 38.21 25.99 11.39

Rectitude Holdings Semi-Annual Data
Mar22 Sep22 Mar23 Sep23 Mar24 Sep24 Mar25 Sep25
ROE % Get a 7-Day Free Trial 33.90 18.17 11.94 9.18 20.69

RECT vs TLF, BWTL, AETN: ROE % Comparison

For the Specialty Retail subindustry, Rectitude Holdings's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rectitude Holdings ROE % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Rectitude Holdings's ROE % distribution charts can be found below:

* The bar in red indicates where Rectitude Holdings's ROE % falls into.


RECT
21GF Score
Rectitude Holdings Ltd RECT
ROE % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rectitude Holdings ROE % Calculation

Rectitude Holdings's annualized ROE % for the fiscal year that ended in Mar. 2025 is calculated as

ROE %=Net Income (A: Mar. 2025 )/( (Total Stockholders Equity (A: Mar. 2024 )+Total Stockholders Equity (A: Mar. 2025 ))/ count )
=1.676/( (10.879+18.544)/ 2 )
=1.676/14.7115
=11.39 %

Rectitude Holdings's annualized ROE % for the quarter that ended in Sep. 2025 is calculated as

ROE %=Net Income (Q: Sep. 2025 )/( (Total Stockholders Equity (Q: Mar. 2025 )+Total Stockholders Equity (Q: Sep. 2025 ))/ count )
=4.1/( (18.544+21.087)/ 2 )
=4.1/19.8155
=20.69 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Sep. 2025) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 20.69% mean?
Rectitude Holdings (RECT) has a ROE % of 20.69% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rectitude Holdings and its competitors. This is 14% below median its historical median of 23.98. Over the past decade, Rectitude Holdings' ROE % has ranged from 11.39 to 38.21. According to the industry distribution chart, Rectitude Holdings ranks #295 out of 1100 companies in the Retail - Cyclical industry, placing it in the top 26.8%.
Is Rectitude Holdings' ROE % too high?
Rectitude Holdings' current ROE % of 20.69% is 14% below median its 10-year median of 23.98. Over the past 10 years, this metric has ranged from a low of 11.39 to a high of 38.21. The Retail - Cyclical industry median ROE % is 6.48. Rectitude Holdings' value of 20.69% is 219.5% above this industry median. Based on the distribution chart, Rectitude Holdings ranks #295 out of 1100 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Rectitude Holdings has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Rectitude Holdings' ROE % compare to TLF and BWTL?
According to the Retail - Cyclical industry distribution chart, Rectitude Holdings ranks #295 out of 1100 companies for ROE %. This puts Rectitude Holdings in the upper half of its industry. The industry median ROE % is 6.48. Rectitude Holdings' value of 20.69% is 219.5% above this benchmark. Historically, Rectitude Holdings' own ROE % has ranged from 11.39 to 38.21 over the past decade. While the company's 10-year median is 23.98 vs. the industry median of 6.48, Rectitude Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Retail - Cyclical company?
The median ROE % among Retail - Cyclical companies is 6.48, based on 1,100 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rectitude Holdings's current ROE % of 20.69% is 219.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Rectitude Holdings and its competitors. For the Retail - Cyclical industry, the median ROE % is 6.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rectitude Holdings's current ROE % is 20.69%, which is 14% below median its own 10-year median of 23.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rectitude Holdings stock overvalued right now?
Rectitude Holdings (RECT) has a current ROE % of 20.69%. The current ROE % is 20.69%, which is 14% below median its 10-year median of 23.98 and 219.5% above the Retail - Cyclical industry median of 6.48. Rectitude Holdings' overall GF Score™ is 21/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Rectitude Holdings (RECT), the current ROE % is 20.69% as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rectitude Holdings Business Description

Address No. 35 Tampines Industrial Avenue 5, T5 Tampines, Singapore, SGP, 528627
Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, hand gloves, safety footwear, and personal fall arrest systems (a system used to arrest an employee in a fall from a walking-working surface, usually consisting of a body harness, anchorage, and connector), portable fire extinguishers and traffic products such as rubber speed humps, wheel stops and wheel chocks. Additionally the company has added auxiliary products such as industrial hardware tools and electrical hardware required for construction sites.
21GF Score

Get the complete analysis for RECT

ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.41
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