RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
38.7 CAD
+0.19 (+0.49%)
RCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 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 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.
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
Looking at the Return On Assets, with a value of 5.87%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
RCH has a Return On Equity of 8.86%. This is comparable to the rest of the industry: RCH outperforms 58.33% of its industry peers.
The Return On Invested Capital of RCH (8.34%) 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 8.03%.
| 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
RCH has a Profit Margin of 4.39%. This is in the better half of the industry: RCH outperforms 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.
RCH has a Gross Margin of 10.83%. 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 | 6.99% | ||
| 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.
Compared to 5 years ago, RCH has less shares outstanding
Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.61 indicates that RCH is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.61, RCH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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.
The Debt to FCF ratio of RCH (1.89) is better than 91.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.23, RCH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.61 |
ROIC/WACC1.04
WACC8.05%
2.3 Liquidity
RCH has a Current Ratio of 3.21. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.21, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that RCH should not have too much problems paying its short term obligations.
RCH has a Quick ratio of 1.12. This is in the better half of the industry: RCH outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
RCH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.97%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
The Revenue has been growing slightly by 6.61% in the past 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)-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.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
EPS Next Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
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
A Price/Earnings ratio of 25.29 indicates a quite expensive valuation of RCH.
RCH's Price/Earnings ratio is in line with the industry average.
RCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.46.
RCH is valuated rather expensively with a Price/Forward Earnings ratio of 21.29.
RCH's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of RCH to the average of the S&P500 Index (36.10), we can say RCH is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCH is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.74 | ||
| EV/EBITDA | 11.1 |
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)19.05
PEG (5Y)4.78
EPS Next 2Y8.65%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.59%.
RCH's Dividend Yield is comparable with the industry average which is at 8.77.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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 39.86% 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.
DP39.86%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
TSX:RCH (12/5/2025, 7:00:00 PM)
38.7
+0.19 (+0.49%)
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 Cap2.13B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target31.62 (-18.29%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
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)-13.89%
PT rev (3m)-16.22%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 21.29 | ||
| P/S | 1.1 | ||
| P/FCF | 14.74 | ||
| P/OCF | 13.21 | ||
| P/B | 2.22 | ||
| P/tB | 2.88 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)1.53
EY3.95%
EPS(NY)1.82
Fwd EY4.7%
FCF(TTM)2.63
FCFY6.79%
OCF(TTM)2.93
OCFY7.57%
SpS35.14
BVpS17.41
TBVpS13.44
PEG (NY)19.05
PEG (5Y)4.78
Graham Number24.48
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 | 5.61 |
F-Score5
WACC8.05%
ROIC/WACC1.04
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 Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-2.56%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.97%
EBIT Next 3Y23.64%
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 1.33% in the next year.