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RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis

TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD

38.03  -0.23 (-0.6%)

Fundamental Rating

5

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. While RCH has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, RCH is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

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.
Of the past 5 years RCH 4 years had a positive operating cash flow.
RCH.CA Yearly Net Income VS EBIT VS OCF VS FCFRCH.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M

1.2 Ratios

With a decent Return On Assets value of 6.15%, RCH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.26%, RCH is in line with its industry, outperforming 46.15% of the companies in the same industry.
RCH has a Return On Invested Capital (8.40%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCH is above the industry average of 8.17%.
Industry RankSector Rank
ROA 6.15%
ROE 9.26%
ROIC 8.4%
ROA(3y)9.25%
ROA(5y)10.7%
ROE(3y)14.06%
ROE(5y)15.78%
ROIC(3y)12.04%
ROIC(5y)13.7%
RCH.CA Yearly ROA, ROE, ROICRCH.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

RCH has a better Profit Margin (4.68%) than 84.62% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
The Operating Margin of RCH (7.23%) is better than 76.92% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
RCH's Gross Margin of 10.99% is on the low side compared to the rest of the industry. RCH is outperformed by 84.62% of its industry peers.
In the last couple of years the Gross Margin of RCH has declined.
Industry RankSector Rank
OM 7.23%
PM (TTM) 4.68%
GM 10.99%
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%
RCH.CA Yearly Profit, Operating, Gross MarginsRCH.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

7

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.
The number of shares outstanding for RCH has been reduced compared to 1 year ago.
The number of shares outstanding for RCH has been reduced compared to 5 years ago.
The debt/assets ratio for RCH is higher compared to a year ago.
RCH.CA Yearly Shares OutstandingRCH.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
RCH.CA Yearly Total Debt VS Total AssetsRCH.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.2 Solvency

RCH has an Altman-Z score of 5.66. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCH (5.66) is better than 92.31% of its industry peers.
The Debt to FCF ratio of RCH is 2.57, which is a good value as it means it would take RCH, 2.57 years of fcf income to pay off all of its debts.
RCH's Debt to FCF ratio of 2.57 is fine compared to the rest of the industry. RCH outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RCH is not too dependend on debt financing.
RCH's Debt to Equity ratio of 0.24 is fine compared to the rest of the industry. RCH outperforms 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.57
Altman-Z 5.66
ROIC/WACC0.92
WACC9.16%
RCH.CA Yearly LT Debt VS Equity VS FCFRCH.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M 800M

2.3 Liquidity

A Current Ratio of 3.12 indicates that RCH has no problem at all paying its short term obligations.
RCH's Current ratio of 3.12 is fine compared to the rest of the industry. RCH outperforms 69.23% of its industry peers.
RCH has a Quick Ratio of 1.05. 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 (1.05) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 3.12
Quick Ratio 1.05
RCH.CA Yearly Current Assets VS Current LiabilitesRCH.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

4

3. Growth

3.1 Past

The earnings per share for RCH have decreased strongly by -22.61% 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.
RCH shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
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)-22.61%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-13.73%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%4.99%

3.2 Future

RCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.71% yearly.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y21%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
EPS Next 5Y9.71%
Revenue Next Year8.11%
Revenue Next 2Y6%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
RCH.CA Yearly Revenue VS EstimatesRCH.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 500M 1B 1.5B 2B
RCH.CA Yearly EPS VS EstimatesRCH.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0.5 1 1.5 2 2.5

2

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 24.69 indicates a rather expensive valuation of RCH.
Based on the Price/Earnings ratio, RCH is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 30.19, RCH is valued at the same level.
The Price/Forward Earnings ratio is 20.41, which indicates a rather expensive current valuation of RCH.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
RCH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.58.
Industry RankSector Rank
PE 24.69
Fwd PE 20.41
RCH.CA Price Earnings VS Forward Price EarningsRCH.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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.
61.54% of the companies in the same industry are more expensive than RCH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.41
EV/EBITDA 11.28
RCH.CA Per share dataRCH.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.18
PEG (5Y)4.67
EPS Next 2Y20.26%
EPS Next 3Y10.37%

5

5. Dividend

5.1 Amount

RCH has a Yearly Dividend Yield of 1.60%.
RCH's Dividend Yield is comparable with the industry average which is at 4.02.
Compared to the average S&P500 Dividend Yield of 2.30, RCH is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.6%

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
RCH.CA Yearly Dividends per shareRCH.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

RCH pays out 39.07% 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.
DP39.07%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
RCH.CA Yearly Income VS Free CF VS DividendRCH.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M 200M
RCH.CA Dividend Payout.RCH.CA Dividend Payout, showing the Payout Ratio.RCH.CA Dividend Payout.PayoutRetained Earnings

RICHELIEU HARDWARE LTD

TSX:RCH (2/14/2025, 7:00:00 PM)

38.03

-0.23 (-0.6%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-16 2025-01-16/dmh
Earnings (Next)04-09 2025-04-09
Inst Owners54.21%
Inst Owner ChangeN/A
Ins Owners7.97%
Ins Owner ChangeN/A
Market Cap2.10B
Analysts47.5
Price Target44.12 (16.01%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.6%
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.07%
Div Incr Years3
Div Non Decr Years4
Ex-Date01-30 2025-01-30 (0.1533)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.22%
Min EPS beat(2)-12.7%
Max EPS beat(2)6.25%
EPS beat(4)1
Avg EPS beat(4)-5.16%
Min EPS beat(4)-12.7%
Max EPS beat(4)6.25%
EPS beat(8)2
Avg EPS beat(8)-3.34%
EPS beat(12)5
Avg EPS beat(12)-0.66%
EPS beat(16)9
Avg EPS beat(16)7.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)3
Avg Revenue beat(8)0.65%
Revenue beat(12)5
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)2.33%
PT rev (1m)-1.14%
PT rev (3m)-1.14%
EPS NQ rev (1m)-7.14%
EPS NQ rev (3m)N/A
EPS NY rev (1m)2.22%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)4.03%
Revenue NY rev (3m)4.03%
Valuation
Industry RankSector Rank
PE 24.69
Fwd PE 20.41
P/S 1.15
P/FCF 20.41
P/OCF 15.74
P/B 2.27
P/tB 2.91
EV/EBITDA 11.28
EPS(TTM)1.54
EY4.05%
EPS(NY)1.86
Fwd EY4.9%
FCF(TTM)1.86
FCFY4.9%
OCF(TTM)2.42
OCFY6.35%
SpS33.14
BVpS16.76
TBVpS13.05
PEG (NY)1.18
PEG (5Y)4.67
Profitability
Industry RankSector Rank
ROA 6.15%
ROE 9.26%
ROCE 11.98%
ROIC 8.4%
ROICexc 8.71%
ROICexgc 10.67%
OM 7.23%
PM (TTM) 4.68%
GM 10.99%
FCFM 5.62%
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 Turnover1.31
Health
Industry RankSector Rank
Debt/Equity 0.24
Debt/FCF 2.57
Debt/EBITDA 1.09
Cap/Depr 44.31%
Cap/Sales 1.67%
Interest Coverage 56.8
Cash Conversion 66.31%
Profit Quality 120.12%
Current Ratio 3.12
Quick Ratio 1.05
Altman-Z 5.66
F-Score4
WACC9.16%
ROIC/WACC0.92
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)-22.61%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-13.73%
EPS Next Y21%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
EPS Next 5Y9.71%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%4.99%
Revenue Next Year8.11%
Revenue Next 2Y6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.84%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year68.41%
EBIT Next 3Y22.87%
EBIT Next 5Y16.82%
FCF growth 1Y-54.93%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y-50.66%
OCF growth 3Y8.55%
OCF growth 5Y8.65%