RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
RCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Trading Companies & Distributors industry. RCH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RCH is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCH was profitable.
In the past year RCH had a positive cash flow from operations.
RCH had positive earnings in each of the past 5 years.
RCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.68%, RCH is doing good in the industry, outperforming 69.23% of the companies in the same industry.
With a decent Return On Equity value of 8.85%, RCH is doing good in the industry, outperforming 61.54% of the companies in the same industry.
RCH has a Return On Invested Capital of 7.90%. 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 7.25%.
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
RCH has a better Profit Margin (4.40%) than 76.92% of its industry peers.
In the last couple of years the Profit Margin of RCH has declined.
RCH has a better Operating Margin (6.96%) than 69.23% of its industry peers.
In the last couple of years the Operating Margin of RCH has declined.
Looking at the Gross Margin, with a value of 10.79%, 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 | 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 5.06 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH has a Altman-Z score of 5.06. This is amongst the best in the industry. RCH outperforms 84.62% of its industry peers.
The Debt to FCF ratio of RCH is 3.02, which is a good value as it means it would take RCH, 3.02 years of fcf income to pay off all of its debts.
RCH's Debt to FCF ratio of 3.02 is fine compared to the rest of the industry. RCH outperforms 61.54% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that RCH is not too dependend on debt financing.
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 | 5.06 |
ROIC/WACC0.9
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.91 indicates that RCH has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.91, RCH is doing good in 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
The earnings per share for RCH have decreased strongly by -12.72% in the last year.
RCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 5.38% 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)-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 8.76% 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 5Y8.76%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.96, RCH is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of RCH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.25, RCH is valued at the same level.
The Price/Forward Earnings ratio is 15.86, which indicates a correct valuation of RCH.
RCH's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of RCH to the average of the S&P500 Index (36.80), we can say RCH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 15.86 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.69 | ||
| EV/EBITDA | 10.38 |
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)1.4
PEG (5Y)4.34
EPS Next 2Y19.16%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.71%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.78, RCH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 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 (7/31/2025, 7:00:00 PM)
34.67
-0.18 (-0.52%)
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 Cap1.92B
Analysts47.5
Price Target37.74 (8.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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)-1.99%
PT rev (3m)-1.99%
EPS NQ rev (1m)-18.18%
EPS NQ rev (3m)-18.18%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.9%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.96 | ||
| Fwd PE | 15.86 | ||
| P/S | 1.01 | ||
| P/FCF | 17.69 | ||
| P/OCF | 14.95 | ||
| P/B | 2.03 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 10.38 |
EPS(TTM)1.51
EY4.36%
EPS(NY)2.19
Fwd EY6.31%
FCF(TTM)1.96
FCFY5.65%
OCF(TTM)2.32
OCFY6.69%
SpS34.31
BVpS17.05
TBVpS13.07
PEG (NY)1.4
PEG (5Y)4.34
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 | 5.06 |
F-Score4
WACC8.75%
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)-12.72%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-2.38%
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%