RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
37.31 CAD
+0.38 (+1.03%)
Taking everything into account, RCH scores 5 out of 10 in our fundamental rating. RCH was compared to 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. RCH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year RCH was profitable.
RCH had a positive operating cash flow in the past year.
In the past 5 years RCH has always been profitable.
Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of RCH (5.87%) is better than 66.67% of its industry peers.
RCH has a Return On Equity (8.86%) which is comparable to the rest of the industry.
The Return On Invested Capital of RCH (8.34%) is comparable to the rest of the 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%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 8.86% | ||
| ROIC | 8.34% |
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
The Profit Margin of RCH (4.39%) is better than 75.00% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 6.99%, RCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
RCH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 10.83%, RCH is doing worse than 83.33% of the companies in the same industry.
RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.99% | ||
| PM (TTM) | 4.39% | ||
| GM | 10.83% |
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.
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.
Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
RCH has an Altman-Z score of 5.53. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
RCH's Altman-Z score of 5.53 is amongst the best of the industry. RCH outperforms 83.33% of its industry peers.
The Debt to FCF ratio of RCH is 1.89, which is an excellent value as it means it would take RCH, only 1.89 years of fcf income to pay off all of its debts.
RCH has a better Debt to FCF ratio (1.89) than 91.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
The Debt to Equity ratio of RCH (0.23) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.53 |
ROIC/WACC1.03
WACC8.06%
2.3 Liquidity
A Current Ratio of 3.21 indicates that RCH has no problem at all paying its short term obligations.
RCH has a better Current ratio (3.21) than 91.67% of its industry peers.
RCH has a Quick Ratio of 1.12. This is a normal value and indicates that RCH is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of RCH (1.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased by -4.97% 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.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 6.61% in the last year.
RCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.96% yearly.
EPS 1Y (TTM)-4.97%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%4.88%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
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 4.89% on average over the next years.
EPS Next Y1%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
EPS Next 5Y7.97%
Revenue Next Year7.95%
Revenue Next 2Y6.31%
Revenue Next 3Y4.89%
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
RCH is valuated rather expensively with a Price/Earnings ratio of 24.39.
RCH's Price/Earnings is on the same level as the industry average.
RCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.35, which is the current average of the S&P500 Index.
RCH is valuated rather expensively with a Price/Forward Earnings ratio of 20.52.
RCH's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 33.72, RCH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 20.52 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCH indicates a slightly more expensive valuation: RCH is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.29 | ||
| EV/EBITDA | 10.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)24.39
PEG (5Y)4.61
EPS Next 2Y8.65%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.65%. Purely for dividend investing, there may be better candidates out there.
RCH's Dividend Yield is comparable with the industry average which is at 8.69.
Compared to the average S&P500 Dividend Yield of 2.36, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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
39.86% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.86%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
TSX:RCH (11/10/2025, 7:00:00 PM)
37.31
+0.38 (+1.03%)
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 Cap2.06B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target36.72 (-1.58%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.86%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.89%
Min EPS beat(2)-3.35%
Max EPS beat(2)5.12%
EPS beat(4)2
Avg EPS beat(4)-3.95%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)2
Avg EPS beat(8)-5.93%
EPS beat(12)4
Avg EPS beat(12)-3.54%
EPS beat(16)7
Avg EPS beat(16)-0.24%
Revenue beat(2)0
Avg Revenue beat(2)-1.05%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.47%
Revenue beat(4)1
Avg Revenue beat(4)-0.16%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.4%
Revenue beat(12)3
Avg Revenue beat(12)0.03%
Revenue beat(16)6
Avg Revenue beat(16)1.02%
PT rev (1m)-2.7%
PT rev (3m)-2.7%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)3.36%
EPS NY rev (3m)-13.24%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.39 | ||
| Fwd PE | 20.52 | ||
| P/S | 1.07 | ||
| P/FCF | 14.29 | ||
| P/OCF | 12.81 | ||
| P/B | 2.16 | ||
| P/tB | 2.79 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)1.53
EY4.1%
EPS(NY)1.82
Fwd EY4.87%
FCF(TTM)2.61
FCFY7%
OCF(TTM)2.91
OCFY7.81%
SpS34.94
BVpS17.31
TBVpS13.37
PEG (NY)24.39
PEG (5Y)4.61
Graham Number24.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 8.86% | ||
| ROCE | 11.68% | ||
| ROIC | 8.34% | ||
| ROICexc | 8.67% | ||
| ROICexgc | 10.72% | ||
| OM | 6.99% | ||
| PM (TTM) | 4.39% | ||
| GM | 10.83% | ||
| FCFM | 7.47% |
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%
ROICexgc growth 3Y-26.6%
ROICexgc 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-Score5
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 22.45% | ||
| Cap/Sales | 0.86% | ||
| Interest Coverage | 38.13 | ||
| Cash Conversion | 76.98% | ||
| Profit Quality | 170.34% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 5.53 |
F-Score5
WACC8.06%
ROIC/WACC1.03
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)-4.97%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%4.88%
EPS Next Y1%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year7.95%
Revenue Next 2Y6.31%
Revenue Next 3Y4.89%
Revenue Next 5YN/A
EBIT growth 1Y-2.56%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year57.61%
EBIT Next 3Y21.03%
EBIT Next 5Y17.2%
FCF growth 1Y-12.79%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y-16.97%
OCF growth 3Y8.55%
OCF growth 5Y8.65%
RICHELIEU HARDWARE LTD / RCH.CA 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 for RCH stock?
ChartMill assigns a valuation rating of 2 / 10 to RICHELIEU HARDWARE LTD (RCH.CA). This can be considered as Overvalued.
Can you provide the profitability details for RICHELIEU HARDWARE LTD?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
How financially healthy is RICHELIEU HARDWARE LTD?
The financial health rating of RICHELIEU HARDWARE LTD (RCH.CA) is 8 / 10.
Can you provide the expected EPS growth for RCH stock?
The Earnings per Share (EPS) of RICHELIEU HARDWARE LTD (RCH.CA) is expected to grow by 1% in the next year.