RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
Taking everything into account, RCH scores 5 out of 10 in our fundamental rating. 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. While showing a medium growth rate, RCH is valued expensive at the moment.
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
RCH has a better Return On Assets (5.70%) than 76.92% of its industry peers.
RCH's Return On Equity of 8.93% is fine compared to the rest of the industry. RCH outperforms 69.23% of its industry peers.
RCH has a Return On Invested Capital of 7.86%. This is in the better half of the industry: RCH outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCH is above the industry average of 7.31%.
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
Looking at the Profit Margin, with a value of 4.52%, RCH is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Profit Margin of RCH has declined.
RCH has a Operating Margin of 7.09%. This is in the better half of the industry: RCH outperforms 76.92% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 10.89%, RCH is doing worse than 84.62% of the companies in the same industry.
In the last couple of years the Gross Margin of RCH has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH is creating some value.
RCH has less shares outstanding than it did 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
RCH has an Altman-Z score of 4.94. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCH (4.94) is better than 76.92% of its industry peers.
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.
RCH has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, RCH is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.96
WACC8.19%
2.3 Liquidity
RCH has a Current Ratio of 2.85. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
RCH has a better Current ratio (2.85) than 69.23% of its industry peers.
A Quick Ratio of 0.93 indicates that RCH may have some problems paying its short term obligations.
The Quick ratio of RCH (0.93) is comparable to the rest of the industry.
| 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.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 4.21% 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)-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 8.88% 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 5Y8.88%
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 22.66.
RCH's Price/Earnings ratio is a bit more expensive when compared to the industry. RCH is more expensive than 69.23% of the companies in the same industry.
When comparing the Price/Earnings ratio of RCH to the average of the S&P500 Index (25.91), we can say RCH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 15.75, the valuation of RCH can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.85. RCH is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 15.75 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RCH is more expensive than 61.54% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.42 | ||
| EV/EBITDA | 10.34 |
4.3 Compensation for Growth
The 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)1.38
PEG (5Y)4.28
EPS Next 2Y19.16%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, RCH has a reasonable but not impressive dividend return.
RCH's Dividend Yield is comparable with the industry average which is at 3.63.
Compared to the average S&P500 Dividend Yield of 2.36, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
RCH pays out 39.77% of its income as dividend. This is a 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 (5/22/2025, 7:00:00 PM)
34.44
+0.2 (+0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.7%
Inst Owner ChangeN/A
Ins Owners8.03%
Ins Owner ChangeN/A
Market Cap1.90B
Analysts47.5
Price Target38.51 (11.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.77%
Div Incr Years3
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)-12.72%
PT rev (3m)-12.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.1%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)1.37%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 15.75 | ||
| P/S | 1.02 | ||
| P/FCF | 17.42 | ||
| P/OCF | 13.93 | ||
| P/B | 2.02 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 10.34 |
EPS(TTM)1.52
EY4.41%
EPS(NY)2.19
Fwd EY6.35%
FCF(TTM)1.98
FCFY5.74%
OCF(TTM)2.47
OCFY7.18%
SpS33.76
BVpS17.08
TBVpS13.15
PEG (NY)1.38
PEG (5Y)4.28
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
WACC8.19%
ROIC/WACC0.96
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 5Y8.88%
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 Year71.71%
EBIT Next 3Y21.71%
EBIT Next 5Y15.92%
FCF growth 1Y1571.72%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y667.64%
OCF growth 3Y8.55%
OCF growth 5Y8.65%