RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
35.27 CAD
+0.21 (+0.6%)
Overall RCH gets a fundamental rating of 5 out of 10. We evaluated RCH 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 quite expensive at the moment. It does show 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.
Each year in the past 5 years RCH has been profitable.
RCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCH's Return On Assets of 5.68% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
RCH has a Return On Equity of 8.85%. This is comparable to the rest of the industry: RCH outperforms 58.33% of its industry peers.
RCH's Return On Invested Capital of 7.90% is in line compared to the rest of the industry. RCH outperforms 50.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCH is above the industry average of 7.81%.
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
With a decent Profit Margin value of 4.40%, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Profit Margin of RCH has declined.
RCH's Operating Margin of 6.96% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
RCH's Gross Margin of 10.79% is on the low side compared to the rest of the industry. RCH is outperformed by 83.33% of its industry peers.
In the last couple of years the Gross Margin of RCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.96% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH 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
An Altman-Z score of 5.09 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH has a better Altman-Z score (5.09) than 83.33% 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.
The Debt to FCF ratio of RCH (3.02) is better than 75.00% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.02 | ||
| Altman-Z | 5.09 |
ROIC/WACC0.92
WACC8.55%
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.
With an excellent Current ratio value of 2.91, RCH belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 1.00 indicates that RCH should not have too much problems paying 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
RCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -12.72%.
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.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 5.12% on average over the next years.
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
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.36, RCH is valued on the expensive side.
RCH's Price/Earnings ratio is in line with the industry average.
RCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 18.72, RCH is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
RCH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.36 | ||
| Fwd PE | 18.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCH is valued a bit more expensive than 66.67% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.97 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.41
EPS Next 2Y10.6%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.74%, RCH has a reasonable but not impressive dividend return.
RCH's Dividend Yield is comparable with the industry average which is at 8.10.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
The dividend of RCH is nicely growing with an annual growth rate of 18.82%!
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 (9/17/2025, 7:00:00 PM)
35.27
+0.21 (+0.6%)
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 Cap1.95B
Analysts47.5
Price Target37.74 (7%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
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)-16.06%
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 | 23.36 | ||
| Fwd PE | 18.72 | ||
| P/S | 1.03 | ||
| P/FCF | 17.97 | ||
| P/OCF | 15.18 | ||
| P/B | 2.06 | ||
| P/tB | 2.69 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)1.51
EY4.28%
EPS(NY)1.88
Fwd EY5.34%
FCF(TTM)1.96
FCFY5.57%
OCF(TTM)2.32
OCFY6.59%
SpS34.37
BVpS17.08
TBVpS13.09
PEG (NY)N/A
PEG (5Y)4.41
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 | 5.09 |
F-Score4
WACC8.55%
ROIC/WACC0.92
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%