RICHELIEU HARDWARE LTD (RCH.CA) Fundamental Analysis & Valuation
TSX:RCH • CA76329W1032
Current stock price
39.94 CAD
-0.24 (-0.6%)
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
- RCH had positive earnings in the past year.
- 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 5.95%, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- RCH has a Return On Equity (8.98%) which is comparable to the rest of the industry.
- RCH has a Return On Invested Capital (8.50%) which is comparable to the rest of the 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 7.73%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 8.98% | ||
| ROIC | 8.5% |
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 has a better Profit Margin (4.35%) than 66.67% of its industry peers.
- In the last couple of years the Profit Margin of RCH has declined.
- Looking at the Operating Margin, with a value of 6.95%, RCH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- RCH's Operating Margin has declined in the last couple of years.
- RCH has a Gross Margin of 10.81%. This is amonst the worse of the industry: RCH underperforms 83.33% of its industry peers.
- In the last couple of years the Gross Margin of RCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.95% | ||
| PM (TTM) | 4.35% | ||
| GM | 10.81% |
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
- The number of shares outstanding for RCH has been reduced compared to 5 years ago.
- RCH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.71 indicates that RCH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RCH (5.71) is better than 83.33% of its industry peers.
- RCH has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
- RCH has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. RCH outperforms 100.00% of its industry peers.
- RCH has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
- RCH's Debt to Equity ratio of 0.23 is amongst the best of the industry. RCH outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 5.71 |
ROIC/WACC1.08
WACC7.87%
2.3 Liquidity
- A Current Ratio of 3.21 indicates that RCH has no problem at all paying its short term obligations.
- With an excellent Current ratio value of 3.21, RCH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- RCH has a Quick Ratio of 1.10. 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 (1.10) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.1 |
3. RCH.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.63% 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 6.37% in the last year.
- The Revenue has been growing by 11.73% on average over the past years. This is quite good.
EPS 1Y (TTM)2.63%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%4.96%
3.2 Future
- Based on estimates for the next years, RCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.89% on average per year.
- Based on estimates for the next years, RCH will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year6.04%
Revenue Next 2Y5.13%
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. RCH.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 25.60, which means the current valuation is very expensive for RCH.
- 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.
- RCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.54, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 18.83, RCH is valued on the expensive side.
- The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
- RCH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.6 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
- RCH's Enterprise Value to EBITDA is on the same level as the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as RCH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.86 | ||
| EV/EBITDA | 11.32 |
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)1.45
PEG (5Y)38.91
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. RCH.CA Dividend Analysis
5.1 Amount
- RCH has a Yearly Dividend Yield of 1.56%.
- RCH's Dividend Yield is comparable with the industry average which is at 5.68.
- RCH's Dividend Yield is comparable with the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
- On average, the dividend of RCH grows each year by 25.00%, which is quite nice.
- RCH has paid a dividend for at least 10 years, which is a reliable track record.
- As RCH did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)25%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- RCH pays out 39.38% of its income as dividend. This is a sustainable payout ratio.
- RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.38%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
RCH.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RCH (4/28/2026, 7:00:00 PM)
39.94
-0.24 (-0.6%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Industry Strength71.65
Industry Growth82.84
Earnings (Last)04-09 2026-04-09/dmh
Earnings (Next)07-08 2026-07-08
Inst Owners57.88%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.20B
Revenue(TTM)1.99B
Net Income(TTM)86.37M
Analysts47.5
Price Target42.84 (7.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Yearly Dividend0.62
Dividend Growth(5Y)25%
DP39.38%
Div Incr Years1
Div Non Decr Years5
Ex-Date04-23 2026-04-23 (0.1566)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.05%
Min EPS beat(2)-14.19%
Max EPS beat(2)0.1%
EPS beat(4)2
Avg EPS beat(4)-3.08%
Min EPS beat(4)-14.19%
Max EPS beat(4)5.12%
EPS beat(8)3
Avg EPS beat(8)-5.74%
EPS beat(12)3
Avg EPS beat(12)-5.37%
EPS beat(16)7
Avg EPS beat(16)-1.85%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)2
Avg Revenue beat(12)-0.45%
Revenue beat(16)5
Avg Revenue beat(16)0.63%
PT rev (1m)0%
PT rev (3m)35.48%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)-1.04%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.6 | ||
| Fwd PE | 18.83 | ||
| P/S | 1.11 | ||
| P/FCF | 10.86 | ||
| P/OCF | 10.18 | ||
| P/B | 2.29 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 11.32 |
EPS(TTM)1.56
EY3.91%
EPS(NY)2.12
Fwd EY5.31%
FCF(TTM)3.68
FCFY9.21%
OCF(TTM)3.92
OCFY9.82%
SpS36.1
BVpS17.48
TBVpS13.39
PEG (NY)1.45
PEG (5Y)38.91
Graham Number24.7671 (-37.99%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 8.98% | ||
| ROCE | 11.82% | ||
| ROIC | 8.5% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 10.8% | ||
| OM | 6.95% | ||
| PM (TTM) | 4.35% | ||
| GM | 10.81% | ||
| FCFM | 10.19% |
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-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 17.66% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 56.4 | ||
| Cash Conversion | 100.53% | ||
| Profit Quality | 234.23% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 5.71 |
F-Score7
WACC7.87%
ROIC/WACC1.08
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)2.63%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4%
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue 1Y (TTM)6.37%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%4.96%
Revenue Next Year6.04%
Revenue Next 2Y5.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.26%
EBIT growth 3Y-16.7%
EBIT growth 5Y3.97%
EBIT Next Year68.88%
EBIT Next 3Y21.09%
EBIT Next 5YN/A
FCF growth 1Y-4.14%
FCF growth 3YN/A
FCF growth 5Y7.02%
OCF growth 1Y-15.26%
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 39.38%.