RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
Overall RCH gets a fundamental rating of 5 out of 10. We evaluated RCH against 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.
1. Profitability
1.1 Basic Checks
RCH had positive earnings in the past year.
In the past year RCH had a positive cash flow from operations.
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
RCH has a Return On Assets of 5.68%. This is in the better half of the industry: RCH outperforms 69.23% of its industry peers.
RCH's Return On Equity of 8.85% is fine compared to the rest of the industry. RCH outperforms 61.54% of its industry peers.
RCH's Return On Invested Capital of 7.90% is fine compared to the rest of the industry. RCH outperforms 76.92% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCH is above the industry average of 7.25%.
The 3 year average ROIC (12.04%) for RCH is well above the current ROIC(7.90%). The reason for the recent decline needs to be investigated.
| 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 76.92% of the companies in the same industry.
RCH's Profit Margin has declined in the last couple of years.
RCH's Operating Margin of 6.96% is fine compared to the rest of the industry. RCH outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of RCH has declined.
The Gross Margin of RCH (10.79%) 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 | 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
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.
RCH has less shares outstanding than it did 5 years ago.
RCH has a worse debt/assets ratio than last year.
2.2 Solvency
RCH has an Altman-Z score of 5.12. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
RCH has a better Altman-Z score (5.12) than 84.62% of its industry peers.
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.
RCH has a Debt to FCF ratio of 3.02. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
RCH has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
RCH has a better Debt to Equity ratio (0.29) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 5.12 |
ROIC/WACC0.9
WACC8.78%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RCH has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.91, RCH is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
RCH has a Quick Ratio of 1.00. This is a normal value and indicates that RCH is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, RCH perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
RCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.61%.
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 5.38% in the past year.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
EPS 1Y (TTM)-22.61%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.36%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
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 8.76% yearly.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.76%
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.
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
Based on the Price/Earnings ratio of 23.16, the valuation of RCH can be described as rather expensive.
Based on the Price/Earnings ratio, RCH is valued a bit more expensive than 61.54% of the companies in the same industry.
RCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.35.
RCH is valuated correctly with a Price/Forward Earnings ratio of 16.31.
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 rather cheap valuation when compared to the S&P500 average which is at 37.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 16.31 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCH.
RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.2 | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
RCH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of RCH may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)4.38
EPS Next 2Y19.16%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.76%.
RCH's Dividend Yield is comparable with the industry average which is at 8.72.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
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
RCH pays out 40.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of RCH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP40.28%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
TSX:RCH (7/24/2025, 7:00:00 PM)
35.66
-0.09 (-0.25%)
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 Cap1.97B
Analysts47.5
Price Target37.74 (5.83%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP40.28%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-1.15%
Min Revenue beat(2)-1.76%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.4%
Revenue beat(12)4
Avg Revenue beat(12)0.51%
Revenue beat(16)7
Avg Revenue beat(16)1.16%
PT rev (1m)-1.99%
PT rev (3m)-14.45%
EPS NQ rev (1m)-7.07%
EPS NQ rev (3m)-7.07%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.23%
Revenue NQ rev (3m)-1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.16 | ||
| Fwd PE | 16.31 | ||
| P/S | 1.04 | ||
| P/FCF | 18.2 | ||
| P/OCF | 15.37 | ||
| P/B | 2.09 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 10.67 |
EPS(TTM)1.54
EY4.32%
EPS(NY)2.19
Fwd EY6.13%
FCF(TTM)1.96
FCFY5.5%
OCF(TTM)2.32
OCFY6.51%
SpS34.31
BVpS17.05
TBVpS13.07
PEG (NY)1.41
PEG (5Y)4.38
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 | 5.12 |
F-Score4
WACC8.78%
ROIC/WACC0.9
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%-2.36%
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.76%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
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%