RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - CA76329W1032 - Common Stock
36.4 CAD
+0.33 (+0.91%)
Taking everything into account, RCH scores 5 out of 10 in our fundamental rating. RCH was compared to 12 industry peers in the Trading Companies & Distributors industry. While RCH has a great health rating, its profitability is only average at the moment. RCH is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCH was profitable.
RCH had a positive operating cash flow in the past year.
RCH had positive earnings in each of the past 5 years.
RCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCH has a better Return On Assets (5.68%) than 66.67% of its industry peers.
RCH has a Return On Equity of 8.85%. This is comparable to the rest of the industry: RCH outperforms 58.33% of its industry peers.
RCH has a Return On Invested Capital (7.90%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for RCH is above the industry average of 7.81%.
The last Return On Invested Capital (7.90%) for RCH is well below the 3 year average (12.04%), which needs to be investigated, but indicates that RCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 8.85% | ||
| ROIC | 7.9% |
ROA(3y)9.25%
ROA(5y)10.7%
ROE(3y)14.06%
ROE(5y)15.78%
ROIC(3y)12.04%
ROIC(5y)13.7%
1.3 Margins
With a decent Profit Margin value of 4.40%, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RCH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.96%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RCH has declined.
RCH has a Gross Margin of 10.79%. This is amonst the worse of the industry: RCH underperforms 83.33% of its industry peers.
RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.96% | ||
| PM (TTM) | 4.4% | ||
| GM | 10.79% |
OM growth 3Y-19.2%
OM growth 5Y-4.56%
PM growth 3Y-21.95%
PM growth 5Y-6.02%
GM growth 3Y-12.26%
GM growth 5Y-1.61%
2. Health
2.1 Basic Checks
RCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
RCH has less shares outstanding than it did 1 year ago.
RCH has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
RCH has an Altman-Z score of 5.14. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.14, RCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
RCH has a debt to FCF ratio of 3.02. This is a good value and a sign of high solvency as RCH would need 3.02 years to pay back of all of its debts.
The Debt to FCF ratio of RCH (3.02) is better than 75.00% of its industry peers.
RCH has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.29, RCH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 5.14 |
ROIC/WACC0.91
WACC8.65%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RCH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 2.91, RCH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that RCH should not have too much problems paying its short term obligations.
The Quick ratio of RCH (1.00) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased strongly by -12.72% in the last year.
Measured over the past 5 years, RCH shows a small growth in Earnings Per Share. The EPS has been growing by 5.29% on average per year.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 5.38% in the last year.
Measured over the past years, RCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.96% on average per year.
EPS 1Y (TTM)-12.72%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.38%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
3.2 Future
The Earnings Per Share is expected to grow by 7.64% on average over the next years.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.64%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.11 indicates a rather expensive valuation of RCH.
The rest of the industry has a similar Price/Earnings ratio as RCH.
Compared to an average S&P500 Price/Earnings ratio of 27.03, RCH is valued at the same level.
With a Price/Forward Earnings ratio of 19.32, RCH is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
When comparing the Price/Forward Earnings ratio of RCH to the average of the S&P500 Index (22.63), we can say RCH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 19.32 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCH indicates a slightly more expensive valuation: RCH is more expensive than 66.67% of the companies listed in the same industry.
RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.55 | ||
| EV/EBITDA | 10.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.56
EPS Next 2Y10.6%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.66%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.18, RCH has a dividend in line with its industry peers.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
5.2 History
On average, the dividend of RCH grows each year by 18.82%, which is quite nice.
RCH has been paying a dividend for at least 10 years, so it has a reliable track record.
RCH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)18.82%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
40.28% of the earnings are spent on dividend by RCH. This is a bit on the high side, but may be sustainable.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
TSX:RCH (9/4/2025, 7:00:00 PM)
36.4
+0.33 (+0.91%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.23%
Inst Owner ChangeN/A
Ins Owners8.03%
Ins Owner ChangeN/A
Market Cap2.01B
Analysts47.5
Price Target37.74 (3.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.66% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP40.28%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.59%
Min EPS beat(2)-23.84%
Max EPS beat(2)-3.35%
EPS beat(4)1
Avg EPS beat(4)-8.41%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)1
Avg EPS beat(8)-6.81%
EPS beat(12)4
Avg EPS beat(12)-2.4%
EPS beat(16)7
Avg EPS beat(16)1.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)0.52%
Revenue beat(16)7
Avg Revenue beat(16)1.17%
PT rev (1m)0%
PT rev (3m)-1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-18.18%
EPS NY rev (1m)-16.06%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 19.32 | ||
| P/S | 1.06 | ||
| P/FCF | 18.55 | ||
| P/OCF | 15.67 | ||
| P/B | 2.13 | ||
| P/tB | 2.78 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)1.51
EY4.15%
EPS(NY)1.88
Fwd EY5.17%
FCF(TTM)1.96
FCFY5.39%
OCF(TTM)2.32
OCFY6.38%
SpS34.36
BVpS17.07
TBVpS13.09
PEG (NY)N/A
PEG (5Y)4.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.68% | ||
| ROE | 8.85% | ||
| ROCE | 11.5% | ||
| ROIC | 7.9% | ||
| ROICexc | 8.15% | ||
| ROICexgc | 10% | ||
| OM | 6.96% | ||
| PM (TTM) | 4.4% | ||
| GM | 10.79% | ||
| FCFM | 5.71% |
ROA(3y)9.25%
ROA(5y)10.7%
ROE(3y)14.06%
ROE(5y)15.78%
ROIC(3y)12.04%
ROIC(5y)13.7%
ROICexc(3y)12.42%
ROICexc(5y)14.61%
ROICexgc(3y)15.29%
ROICexgc(5y)18.5%
ROCE(3y)17.75%
ROCE(5y)19.46%
ROICexcg growth 3Y-26.6%
ROICexcg growth 5Y-8.43%
ROICexc growth 3Y-25%
ROICexc growth 5Y-7.7%
OM growth 3Y-19.2%
OM growth 5Y-4.56%
PM growth 3Y-21.95%
PM growth 5Y-6.02%
GM growth 3Y-12.26%
GM growth 5Y-1.61%
F-Score4
Asset Turnover1.29
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Debt/EBITDA | 1.33 | ||
| Cap/Depr | 27.39% | ||
| Cap/Sales | 1.05% | ||
| Interest Coverage | 37.96 | ||
| Cash Conversion | 62.64% | ||
| Profit Quality | 129.87% | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.14 |
F-Score4
WACC8.65%
ROIC/WACC0.91
Cap/Depr(3y)53.27%
Cap/Depr(5y)48.46%
Cap/Sales(3y)1.76%
Cap/Sales(5y)1.51%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-12.72%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.38%
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.64%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.78%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.33%
EBIT Next 3Y21.71%
EBIT Next 5Y16.85%
FCF growth 1Y64.26%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y38.25%
OCF growth 3Y8.55%
OCF growth 5Y8.65%