RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
34.87 CAD
+0.2 (+0.58%)
Overall RCH gets a fundamental rating of 5 out of 10. We evaluated RCH against 12 industry peers in the Trading Companies & Distributors industry. While RCH has a great health rating, its profitability is only average at the moment. RCH is valied quite expensively at the moment, while it does show a decent growth rate.
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.
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
Looking at the Return On Assets, with a value of 5.68%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
With a Return On Equity value of 8.85%, RCH perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
The Return On Invested Capital of RCH (7.90%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for RCH is above the industry average of 7.81%.
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
RCH has a better Profit Margin (4.40%) than 75.00% of its industry peers.
In the last couple of years the Profit Margin of RCH has declined.
RCH has a Operating Margin of 6.96%. This is in the better half of the industry: RCH outperforms 66.67% 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 83.33% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCH is still creating some value.
RCH has less shares outstanding than it did 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
An Altman-Z score of 5.07 indicates that RCH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.07, RCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 3.02, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
RCH has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 5.07 |
ROIC/WACC0.91
WACC8.68%
2.3 Liquidity
RCH has a Current Ratio of 2.91. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
RCH has a Current ratio of 2.91. This is amongst the best in the industry. RCH outperforms 83.33% of its industry peers.
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.
RCH has a Quick ratio (1.00) which is in line with 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.
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.
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)-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
Based on estimates for the next years, RCH will show a small growth in Earnings Per Share. The EPS will grow by 7.54% on average per year.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.12% yearly.
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.54%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
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.
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
The Price/Earnings ratio is 23.09, which indicates a rather expensive current valuation of RCH.
RCH's Price/Earnings is on the same level as the industry average.
RCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 18.51 indicates a rather expensive valuation of RCH.
RCH's Price/Forward Earnings ratio is in line with the industry average.
RCH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 18.51 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA 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.
RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.76 | ||
| EV/EBITDA | 10.42 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.36
EPS Next 2Y10.6%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.73%.
RCH's Dividend Yield is comparable with the industry average which is at 8.08.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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 (9/24/2025, 7:00:00 PM)
34.87
+0.2 (+0.58%)
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 Cap1.93B
Analysts47.5
Price Target37.74 (8.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.73% |
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)-18.18%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.9%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.09 | ||
| Fwd PE | 18.51 | ||
| P/S | 1.01 | ||
| P/FCF | 17.76 | ||
| P/OCF | 15.01 | ||
| P/B | 2.04 | ||
| P/tB | 2.66 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)1.51
EY4.33%
EPS(NY)1.88
Fwd EY5.4%
FCF(TTM)1.96
FCFY5.63%
OCF(TTM)2.32
OCFY6.66%
SpS34.37
BVpS17.08
TBVpS13.09
PEG (NY)N/A
PEG (5Y)4.36
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 | 5.07 |
F-Score4
WACC8.68%
ROIC/WACC0.91
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 5Y7.54%
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 Year61.33%
EBIT Next 3Y21.71%
EBIT Next 5Y16.73%
FCF growth 1Y64.26%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y38.25%
OCF growth 3Y8.55%
OCF growth 5Y8.65%