RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
36.32 CAD
+0.53 (+1.48%)
RCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Trading Companies & Distributors industry. RCH has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, RCH is valued expensive at the moment.
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
RCH's Return On Assets of 5.68% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
RCH has a Return On Equity of 8.85%. This is comparable to the rest of the industry: RCH outperforms 58.33% of its industry peers.
With a Return On Invested Capital value of 7.90%, RCH perfoms like the industry average, outperforming 50.00% 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 7.67%.
The last Return On Invested Capital (7.90%) for RCH is well below the 3 year average (12.04%), which needs to be investigated, but indicates that RCH had better years and this may not be a problem.
| 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
Looking at the Profit Margin, with a value of 4.40%, RCH is in the better half of the industry, outperforming 75.00% 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 66.67% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
The Gross Margin of RCH (10.79%) is worse than 83.33% of its industry peers.
In the last couple of years the Gross Margin of RCH has declined.
| 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
RCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, RCH has less shares outstanding
RCH has less shares outstanding than it did 5 years ago.
RCH has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.12 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH has a better Altman-Z score (5.12) than 83.33% 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.
The Debt to FCF ratio of RCH (3.02) is better than 75.00% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 5.12 |
ROIC/WACC0.94
WACC8.39%
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 belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that RCH should not have too much problems paying its short term obligations.
RCH's Quick ratio of 1.00 is in line compared to the rest of the industry. RCH outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased strongly by -12.72% 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.
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)-12.72%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.38%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
3.2 Future
The Earnings Per Share is expected to grow by 7.97% on average over the next years.
The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.97%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.05, the valuation of RCH can be described as rather expensive.
RCH's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.40, RCH is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.28, the valuation of RCH can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, RCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 19.28 |
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.
RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.5 | ||
| EV/EBITDA | 10.67 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.55
EPS Next 2Y10.6%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.79%, RCH has a reasonable but not impressive dividend return.
RCH's Dividend Yield is comparable with the industry average which is at 8.32.
Compared to the average S&P500 Dividend Yield of 2.38, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
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
RCH pays out 40.28% of its income as dividend. This is a bit on the high side, but may be sustainable.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP40.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
TSX:RCH (10/17/2025, 7:00:00 PM)
36.32
+0.53 (+1.48%)
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 Cap2.01B
Analysts47.5
Price Target37.74 (3.91%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.79% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP40.28%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-13.59%
Min EPS beat(2)-23.84%
Max EPS beat(2)-3.35%
EPS beat(4)1
Avg EPS beat(4)-8.41%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)1
Avg EPS beat(8)-6.81%
EPS beat(12)4
Avg EPS beat(12)-2.4%
EPS beat(16)7
Avg EPS beat(16)1.2%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.38%
Revenue beat(12)4
Avg Revenue beat(12)0.52%
Revenue beat(16)7
Avg Revenue beat(16)1.17%
PT rev (1m)0%
PT rev (3m)-1.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.96%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-0.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.05 | ||
| Fwd PE | 19.28 | ||
| P/S | 1.06 | ||
| P/FCF | 18.5 | ||
| P/OCF | 15.63 | ||
| P/B | 2.13 | ||
| P/tB | 2.77 | ||
| EV/EBITDA | 10.67 |
EPS(TTM)1.51
EY4.16%
EPS(NY)1.88
Fwd EY5.19%
FCF(TTM)1.96
FCFY5.4%
OCF(TTM)2.32
OCFY6.4%
SpS34.37
BVpS17.08
TBVpS13.09
PEG (NY)N/A
PEG (5Y)4.55
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
WACC8.39%
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)-12.72%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.38%
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.97%
Revenue 1Y (TTM)5.38%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.39%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-10.78%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year57.61%
EBIT Next 3Y21.03%
EBIT Next 5Y17.2%
FCF growth 1Y64.26%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y38.25%
OCF growth 3Y8.55%
OCF growth 5Y8.65%