RICHELIEU HARDWARE LTD (RCH.CA) Fundamental Analysis & Valuation
TSX:RCH • CA76329W1032
Current stock price
39.13 CAD
+0.33 (+0.85%)
Last:
This RCH.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RCH.CA Profitability Analysis
1.1 Basic Checks
- In the past year RCH was profitable.
- In the past year RCH had a positive cash flow from operations.
- In the past 5 years RCH has always 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 5.94%. This is in the better half of the industry: RCH outperforms 75.00% of its industry peers.
- RCH has a Return On Equity (8.92%) which is in line with its industry peers.
- Looking at the Return On Invested Capital, with a value of 8.51%, 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 9.42%. This is in line with the industry average of 7.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.94% | ||
| ROE | 8.92% | ||
| ROIC | 8.51% |
ROA(3y)6.86%
ROA(5y)9.68%
ROE(3y)10.17%
ROE(5y)14.48%
ROIC(3y)9.42%
ROIC(5y)12.77%
1.3 Margins
- RCH's Profit Margin of 4.37% is fine compared to the rest of the industry. RCH outperforms 75.00% of its industry peers.
- RCH's Profit Margin has declined in the last couple of years.
- RCH's Operating Margin of 7.03% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
- In the last couple of years the Operating Margin of RCH has declined.
- RCH's Gross Margin of 10.89% is on the low side compared to the rest of the industry. RCH is outperformed by 83.33% of its industry peers.
- In the last couple of years the Gross Margin of RCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 4.37% | ||
| GM | 10.89% |
OM growth 3Y-19.04%
OM growth 5Y-6.95%
PM growth 3Y-22.37%
PM growth 5Y-10.37%
GM growth 3Y-11.93%
GM growth 5Y-3.61%
2. RCH.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH 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.
- The debt/assets ratio for RCH is higher compared to a year ago.
2.2 Solvency
- RCH has an Altman-Z score of 5.68. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
- RCH's Altman-Z score of 5.68 is fine compared to the rest of the industry. RCH outperforms 75.00% of its industry peers.
- The Debt to FCF ratio of RCH is 1.48, which is an excellent value as it means it would take RCH, only 1.48 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.48, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
- RCH has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- RCH has a better Debt to Equity ratio (0.23) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.68 |
ROIC/WACC1.13
WACC7.52%
2.3 Liquidity
- A Current Ratio of 3.29 indicates that RCH has no problem at all paying its short term obligations.
- RCH has a Current ratio of 3.29. This is amongst the best in the industry. RCH outperforms 100.00% of its industry peers.
- A Quick Ratio of 1.18 indicates that RCH should not have too much problems paying its short term obligations.
- The Quick ratio of RCH (1.18) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.18 |
3. RCH.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 0.65% over the past year.
- The Earnings Per Share has been growing slightly by 0.66% on average over the past years.
- Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 7.19% in the last year.
- Measured over the past years, RCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.73% on average per year.
EPS 1Y (TTM)0.65%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4.55%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%7.28%
3.2 Future
- The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
- The Revenue is expected to grow by 4.74% on average over the next years.
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y4.74%
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.
- 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. RCH.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.25, the valuation of RCH can be described as expensive.
- RCH's Price/Earnings ratio is a bit more expensive when compared to the industry. RCH is more expensive than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.78, RCH is valued at the same level.
- The Price/Forward Earnings ratio is 21.46, 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 23.54, RCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 21.46 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCH is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
- RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.5 | ||
| EV/EBITDA | 11.04 |
4.3 Compensation for Growth
- RCH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.43
PEG (5Y)38.37
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. RCH.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.61%, RCH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.75, RCH has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, RCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
5.2 History
- On average, the dividend of RCH grows each year by 25.00%, 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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)25%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- 39.48% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
- The dividend of RCH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
RCH.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RCH (4/10/2026, 7:00:00 PM)
39.13
+0.33 (+0.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)04-09 2026-04-09
Earnings (Next)07-08 2026-07-08
Inst Owners57.88%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.15B
Revenue(TTM)1.96B
Net Income(TTM)85.82M
Analysts47.5
Price Target42.84 (9.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.62
Dividend Growth(5Y)25%
DP39.48%
Div Incr Years1
Div Non Decr Years5
Ex-Date01-29 2026-01-29 (0.1566)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.61%
Min EPS beat(2)0.1%
Max EPS beat(2)5.12%
EPS beat(4)2
Avg EPS beat(4)-5.49%
Min EPS beat(4)-23.84%
Max EPS beat(4)5.12%
EPS beat(8)3
Avg EPS beat(8)-5.32%
EPS beat(12)4
Avg EPS beat(12)-4.06%
EPS beat(16)7
Avg EPS beat(16)-1.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.47%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)3
Avg Revenue beat(12)0.08%
Revenue beat(16)5
Avg Revenue beat(16)0.45%
PT rev (1m)0%
PT rev (3m)35.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.25 | ||
| Fwd PE | 21.46 | ||
| P/S | 1.1 | ||
| P/FCF | 11.5 | ||
| P/OCF | 10.63 | ||
| P/B | 2.24 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 11.04 |
EPS(TTM)1.55
EY3.96%
EPS(NY)1.82
Fwd EY4.66%
FCF(TTM)3.4
FCFY8.7%
OCF(TTM)3.68
OCFY9.41%
SpS35.72
BVpS17.49
TBVpS13.42
PEG (NY)1.43
PEG (5Y)38.37
Graham Number24.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.94% | ||
| ROE | 8.92% | ||
| ROCE | 11.78% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.85% | ||
| ROICexgc | 10.99% | ||
| OM | 7.03% | ||
| PM (TTM) | 4.37% | ||
| GM | 10.89% | ||
| FCFM | 9.53% |
ROA(3y)6.86%
ROA(5y)9.68%
ROE(3y)10.17%
ROE(5y)14.48%
ROIC(3y)9.42%
ROIC(5y)12.77%
ROICexc(3y)9.81%
ROICexc(5y)13.38%
ROICexgc(3y)12.12%
ROICexgc(5y)16.8%
ROCE(3y)13.17%
ROCE(5y)18.19%
ROICexgc growth 3Y-18.9%
ROICexgc growth 5Y-11.03%
ROICexc growth 3Y-19.23%
ROICexc growth 5Y-10.21%
OM growth 3Y-19.04%
OM growth 5Y-6.95%
PM growth 3Y-22.37%
PM growth 5Y-10.37%
GM growth 3Y-11.93%
GM growth 5Y-3.61%
F-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 42.6 | ||
| Cash Conversion | 94.62% | ||
| Profit Quality | 218.09% | ||
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.68 |
F-Score6
WACC7.52%
ROIC/WACC1.13
Cap/Depr(3y)44.48%
Cap/Depr(5y)45.2%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.45%
Profit Quality(3y)181.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)0.65%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4.55%
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue 1Y (TTM)7.19%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%7.28%
Revenue Next Year5.94%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y-16.7%
EBIT growth 5Y3.97%
EBIT Next Year68.88%
EBIT Next 3Y21.09%
EBIT Next 5YN/A
FCF growth 1Y81.72%
FCF growth 3YN/A
FCF growth 5Y7.02%
OCF growth 1Y51.53%
OCF growth 3YN/A
OCF growth 5Y6.79%
RICHELIEU HARDWARE LTD / RCH.CA Fundamental Analysis 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 of RICHELIEU HARDWARE LTD (RCH.CA) stock?
ChartMill assigns a valuation rating of 2 / 10 to RICHELIEU HARDWARE LTD (RCH.CA). This can be considered as Overvalued.
What is the profitability of RCH stock?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for RCH stock?
The financial health rating of RICHELIEU HARDWARE LTD (RCH.CA) is 8 / 10.
Is the dividend of RICHELIEU HARDWARE LTD sustainable?
The dividend rating of RICHELIEU HARDWARE LTD (RCH.CA) is 5 / 10 and the dividend payout ratio is 39.48%.