Rectitude (RECT) Fundamental Analysis: Revenue, Earnings & Valuation

2.53 / 10

Underperform

Rectitude's fundamentals are underdeveloped with a 2.5/10 score. Key concerns include low asset and revenue multiples (Asset-MV and Revenue-MV in lower quartiles) and modest year-on-year revenue growth (5.9%). Although cash flow to liabilities and debt ratios look acceptable, they are not strong enough to offset other weaknesses, leading to an Underperform rating.

Analysis Checks(5/9)

Revenue-MV

Value-0.19

Score2/3

Weight15.16%

1M Return6.48%

Total operating revenue (YoY growth rate %)

Value5.91

Score1/3

Weight5.00%

1M Return2.63%

PB-ROE

Value0.66

Score2/3

Weight14.12%

1M Return6.25%

Total profit / EBIT (%)

Value92.45

Score1/3

Weight5.07%

1M Return2.64%

Net cash flow from operating activities / Total liabilities (%)

Value0.01

Score2/3

Weight6.34%

1M Return3.17%

Long-term debt to working capital ratio (%)

Value0.44

Score2/3

Weight5.78%

1M Return2.91%

Operating revenue (YoY growth rate %)

Value5.91

Score1/3

Weight5.00%

1M Return2.63%

Asset-MV

Value-0.07

Score1/3

Weight23.63%

1M Return10.16%

Cash-MV

Value-0.13

Score3/3

Weight19.91%

1M Return9.23%

Is RECT undervalued or overvalued?

RECT scores 2.53/10 on fundamentals and holds a Premium valuation at present. Backed by its 11.37% ROE, 5.11% net margin, 13.42 P/E ratio, 1.21 P/B ratio, and -40.61% earnings growth, these metrics solidify its Underperform investment rating.