RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
39.59 CAD
-0.36 (-0.9%)
We assign a fundamental rating of 5 out of 10 to RCH. 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
RCH had positive earnings in the past year.
RCH had a positive operating cash flow in the past year.
In the past 5 years RCH has always been profitable.
Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.87%, RCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.86%, RCH is in line with its industry, outperforming 58.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.34%, RCH is in line with its industry, outperforming 58.33% of the companies in the same industry.
RCH had an Average Return On Invested Capital over the past 3 years of 12.04%. This is above the industry average of 8.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 8.86% | ||
| ROIC | 8.34% |
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
The Profit Margin of RCH (4.39%) is better than 75.00% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
The Operating Margin of RCH (6.99%) is better than 66.67% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 10.83%, RCH is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of RCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.99% | ||
| PM (TTM) | 4.39% | ||
| GM | 10.83% |
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.
The number of shares outstanding for RCH has been reduced compared to 1 year ago.
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 5.70 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH's Altman-Z score of 5.70 is amongst the best of the industry. RCH outperforms 83.33% of its industry peers.
The Debt to FCF ratio of RCH is 1.89, which is an excellent value as it means it would take RCH, only 1.89 years of fcf income to pay off all of its debts.
RCH has a Debt to FCF ratio of 1.89. This is amongst the best in the industry. RCH outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.99
WACC8.41%
2.3 Liquidity
A Current Ratio of 3.21 indicates that RCH has no problem at all paying its short term obligations.
RCH has a better Current ratio (3.21) than 91.67% of its industry peers.
RCH has a Quick Ratio of 1.12. This is a normal value and indicates that RCH is financially healthy and should not expect problems in meeting its short term obligations.
RCH has a Quick ratio of 1.12. This is in the better half of the industry: RCH outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased by -4.97% in the last year.
RCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
The Revenue has been growing slightly by 6.61% in the past year.
RCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.96% yearly.
EPS 1Y (TTM)-4.97%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%4.88%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
3.2 Future
RCH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
EPS Next Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
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
With a Price/Earnings ratio of 25.88, RCH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of RCH is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.77. RCH is around the same levels.
With a Price/Forward Earnings ratio of 21.78, RCH is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
The average S&P500 Price/Forward Earnings ratio is at 23.35. RCH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 21.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCH is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.08 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RCH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)19.49
PEG (5Y)4.89
EPS Next 2Y8.65%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.54%, RCH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.26, RCH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.00, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
5.2 History
On average, the dividend of RCH grows each year by 18.82%, which is quite nice.
RCH has paid a dividend for at least 10 years, which is 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
39.86% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.86%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
TSX:RCH (12/30/2025, 7:00:00 PM)
39.59
-0.36 (-0.9%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.85%
Inst Owner ChangeN/A
Ins Owners8.05%
Ins Owner ChangeN/A
Market Cap2.17B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target31.62 (-20.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.86%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.89%
Min EPS beat(2)-3.35%
Max EPS beat(2)5.12%
EPS beat(4)2
Avg EPS beat(4)-3.95%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)2
Avg EPS beat(8)-5.93%
EPS beat(12)4
Avg EPS beat(12)-3.54%
EPS beat(16)7
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.47%
Revenue beat(4)1
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.4%
Revenue beat(12)3
Avg Revenue beat(12)0.03%
Revenue beat(16)6
Avg Revenue beat(16)1.02%
PT rev (1m)0%
PT rev (3m)-16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.88 | ||
| Fwd PE | 21.78 | ||
| P/S | 1.13 | ||
| P/FCF | 15.08 | ||
| P/OCF | 13.52 | ||
| P/B | 2.27 | ||
| P/tB | 2.95 | ||
| EV/EBITDA | 11.43 |
EPS(TTM)1.53
EY3.86%
EPS(NY)1.82
Fwd EY4.59%
FCF(TTM)2.63
FCFY6.63%
OCF(TTM)2.93
OCFY7.4%
SpS35.14
BVpS17.41
TBVpS13.44
PEG (NY)19.49
PEG (5Y)4.89
Graham Number24.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 8.86% | ||
| ROCE | 11.68% | ||
| ROIC | 8.34% | ||
| ROICexc | 8.67% | ||
| ROICexgc | 10.72% | ||
| OM | 6.99% | ||
| PM (TTM) | 4.39% | ||
| GM | 10.83% | ||
| FCFM | 7.47% |
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%
ROICexgc growth 3Y-26.6%
ROICexgc 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-Score5
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 22.45% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 38.13 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | 170.34% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 5.7 |
F-Score5
WACC8.41%
ROIC/WACC0.99
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)-4.97%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%4.88%
EPS Next Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-2.56%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.97%
EBIT Next 3Y23.64%
EBIT Next 5Y17.2%
FCF growth 1Y-12.79%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y-16.97%
OCF growth 3Y8.55%
OCF growth 5Y8.65%
RICHELIEU HARDWARE LTD / RCH.CA FAQ
Can you provide the ChartMill fundamental rating for RICHELIEU HARDWARE LTD?
ChartMill assigns a fundamental rating of 5 / 10 to RCH.CA.
What is the valuation status for RCH stock?
ChartMill assigns a valuation rating of 2 / 10 to RICHELIEU HARDWARE LTD (RCH.CA). This can be considered as Overvalued.
Can you provide the profitability details for RICHELIEU HARDWARE LTD?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
How financially healthy is RICHELIEU HARDWARE LTD?
The financial health rating of RICHELIEU HARDWARE LTD (RCH.CA) is 8 / 10.
Can you provide the expected EPS growth for RCH stock?
The Earnings per Share (EPS) of RICHELIEU HARDWARE LTD (RCH.CA) is expected to grow by 1.33% in the next year.