RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to RCH. RCH was compared to 13 industry peers in the Trading Companies & Distributors industry. Both the profitability and the financial health of RCH get a neutral evaluation. Nothing too spectacular is happening here. RCH is valied quite expensively at the moment, while 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.
Each year in the past 5 years RCH has been profitable.
RCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.70%, RCH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
RCH has a Return On Equity of 8.93%. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
RCH has a better Return On Invested Capital (7.86%) than 76.92% of its industry peers.
RCH had an Average Return On Invested Capital over the past 3 years of 12.04%. This is above the industry average of 7.36%.
The 3 year average ROIC (12.04%) for RCH is well above the current ROIC(7.86%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 8.93% | ||
| ROIC | 7.86% |
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
RCH has a Profit Margin of 4.52%. This is in the better half of the industry: RCH outperforms 76.92% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
RCH has a better Operating Margin (7.09%) than 69.23% of its industry peers.
In the last couple of years the Operating Margin of RCH has declined.
The Gross Margin of RCH (10.89%) is worse than 84.62% of its industry peers.
RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.09% | ||
| PM (TTM) | 4.52% | ||
| GM | 10.89% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCH is still creating some value.
Compared to 1 year ago, RCH has less shares outstanding
Compared to 5 years ago, RCH has less shares outstanding
The debt/assets ratio for RCH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.94 indicates that RCH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.94, RCH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
The Debt to FCF ratio of RCH is 3.06, which is a good value as it means it would take RCH, 3.06 years of fcf income to pay off all of its debts.
RCH has a Debt to FCF ratio of 3.06. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that RCH is not too dependend on debt financing.
RCH has a Debt to Equity ratio of 0.30. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.94
WACC8.38%
2.3 Liquidity
A Current Ratio of 2.85 indicates that RCH has no problem at all paying its short term obligations.
RCH's Current ratio of 2.85 is fine compared to the rest of the industry. RCH outperforms 69.23% of its industry peers.
RCH has a Quick Ratio of 2.85. This is a bad value and indicates that RCH is not financially healthy enough and could expect problems in meeting its short term obligations.
RCH has a Quick ratio (0.93) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
RCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.28%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
RCH shows a small growth in Revenue. In the last year, the Revenue has grown by 4.21%.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-18.28%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%8.56%
3.2 Future
The Earnings Per Share is expected to grow by 8.77% on average over the next years. This is quite good.
Based on estimates for the next years, RCH will show a small growth in Revenue. The Revenue will grow by 5.69% on average per year.
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.77%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
RCH is valuated rather expensively with a Price/Earnings ratio of 22.50.
61.54% of the companies in the same industry are cheaper than RCH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.32. RCH is around the same levels.
With a Price/Forward Earnings ratio of 15.64, RCH is valued correctly.
RCH's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. RCH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 15.64 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA is on the same level as the industry average.
RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.3 | ||
| EV/EBITDA | 10.33 |
4.3 Compensation for Growth
RCH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RCH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.37
PEG (5Y)4.25
EPS Next 2Y19.16%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.88, RCH has a dividend in line with its industry peers.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
5.2 History
The dividend of RCH is nicely growing with an annual growth rate of 18.82%!
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
39.77% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
The dividend of RCH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.77%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
TSX:RCH (6/17/2025, 7:00:00 PM)
34.2
-0.57 (-1.64%)
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 Cap1.89B
Analysts47.5
Price Target38.51 (12.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.77%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.79%
Min EPS beat(2)-23.84%
Max EPS beat(2)6.25%
EPS beat(4)1
Avg EPS beat(4)-8.39%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)1
Avg EPS beat(8)-6.51%
EPS beat(12)5
Avg EPS beat(12)-1.44%
EPS beat(16)8
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)1.17%
Revenue beat(16)8
Avg Revenue beat(16)2.03%
PT rev (1m)0%
PT rev (3m)-12.72%
EPS NQ rev (1m)-7.53%
EPS NQ rev (3m)-12.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.5 | ||
| Fwd PE | 15.64 | ||
| P/S | 1.01 | ||
| P/FCF | 17.3 | ||
| P/OCF | 13.83 | ||
| P/B | 2 | ||
| P/tB | 2.6 | ||
| EV/EBITDA | 10.33 |
EPS(TTM)1.52
EY4.44%
EPS(NY)2.19
Fwd EY6.39%
FCF(TTM)1.98
FCFY5.78%
OCF(TTM)2.47
OCFY7.23%
SpS33.76
BVpS17.08
TBVpS13.15
PEG (NY)1.37
PEG (5Y)4.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 8.93% | ||
| ROCE | 11.54% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 9.86% | ||
| OM | 7.09% | ||
| PM (TTM) | 4.52% | ||
| GM | 10.89% | ||
| FCFM | 5.86% |
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 Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 38.6% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 44.05 | ||
| Cash Conversion | 67.21% | ||
| Profit Quality | 129.55% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 4.94 |
F-Score4
WACC8.38%
ROIC/WACC0.94
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)-18.28%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-7.41%
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.77%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%8.56%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.31%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.33%
EBIT Next 3Y21.71%
EBIT Next 5Y16.86%
FCF growth 1Y1571.72%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y667.64%
OCF growth 3Y8.55%
OCF growth 5Y8.65%