RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
39.28 CAD
+0.56 (+1.45%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, RCH is valued expensive at the moment.
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
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.
RCH's Return On Invested Capital of 8.34% is in line compared to the rest of the industry. RCH outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCH is above the industry average of 8.04%.
| 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 better Profit Margin (4.39%) than 75.00% 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 6.99%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RCH has declined.
The Gross Margin of RCH (10.83%) is worse than 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
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
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 5.66. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
RCH has a better Altman-Z score (5.66) than 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.
RCH has a better Debt to Equity ratio (0.23) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.66 |
ROIC/WACC0.95
WACC8.8%
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 1.12. This is a normal value and indicates that RCH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.12, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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%.
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.
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
RCH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
Based on estimates for the next years, RCH will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
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.
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
The Price/Earnings ratio is 25.67, which means the current valuation is very expensive for RCH.
RCH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. RCH is around the same levels.
RCH is valuated rather expensively with a Price/Forward Earnings ratio of 21.61.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, RCH is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 21.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCH is on the same level as its industry peers.
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 | 15 | ||
| EV/EBITDA | 11.28 |
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)25.67
PEG (5Y)4.85
EPS Next 2Y8.65%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, RCH has a reasonable but not impressive dividend return.
RCH's Dividend Yield is comparable with the industry average which is at 8.34.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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 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 3Y7.99%
TSX:RCH (11/28/2025, 7:00:00 PM)
39.28
+0.56 (+1.45%)
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 Cap2.16B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target31.62 (-19.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-16.22%
PT rev (3m)-16.22%
EPS NQ rev (1m)1.11%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)3.36%
EPS NY rev (3m)3.36%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.67 | ||
| Fwd PE | 21.61 | ||
| P/S | 1.12 | ||
| P/FCF | 15 | ||
| P/OCF | 13.45 | ||
| P/B | 2.26 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 11.28 |
EPS(TTM)1.53
EY3.9%
EPS(NY)1.82
Fwd EY4.63%
FCF(TTM)2.62
FCFY6.67%
OCF(TTM)2.92
OCFY7.44%
SpS35.04
BVpS17.36
TBVpS13.41
PEG (NY)25.67
PEG (5Y)4.85
Graham Number24.44
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 | 5.66 |
F-Score5
WACC8.8%
ROIC/WACC0.95
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.