RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RCH • CA76329W1032
42.36 CAD
-0.04 (-0.09%)
Last: Feb 6, 2026, 07:00 PM
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 has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, RCH is valued expensive at the moment.
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.
- 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 5.94%, RCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- RCH's Return On Equity of 8.92% is in line compared to the rest of the industry. RCH outperforms 58.33% of its industry peers.
- RCH's Return On Invested Capital of 8.51% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for RCH is in line with the industry average of 8.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.94% | ||
| ROE | 8.92% | ||
| ROIC | 8.51% |
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
- Looking at the Profit Margin, with a value of 4.37%, RCH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
- RCH's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 7.03%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- RCH's Operating Margin has declined in the last couple of years.
- With a Gross Margin value of 10.89%, RCH is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
- RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.03% | ||
| PM (TTM) | 4.37% | ||
| GM | 10.89% |
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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH is creating some value.
- RCH has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, RCH has less shares outstanding
- RCH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.90 indicates that RCH is not in any danger for bankruptcy at the moment.
- RCH has a better Altman-Z score (5.90) than 83.33% of its industry peers.
- RCH has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
- RCH's Debt to FCF ratio of 1.48 is amongst the best of the industry. RCH outperforms 100.00% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.23, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.9 |
ROIC/WACC0.98
WACC8.65%
2.3 Liquidity
- RCH has a Current Ratio of 3.29. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
- RCH has a Current ratio of 3.29. This is amongst the best in the industry. RCH outperforms 91.67% of its industry peers.
- A Quick Ratio of 1.18 indicates that RCH should not have too much problems paying its short term obligations.
- RCH's Quick ratio of 1.18 is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.65% over the past year.
- The Earnings Per Share has been growing slightly by 0.66% on average over the past years.
- RCH shows a small growth in Revenue. In the last year, the Revenue has grown by 7.19%.
- Measured over the past years, RCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.73% on average per year.
EPS 1Y (TTM)0.65%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4.55%
Revenue 1Y (TTM)7.19%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%7.28%
3.2 Future
- The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
- RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.34% yearly.
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year4.74%
Revenue Next 2Y4.34%
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.
- 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
- A Price/Earnings ratio of 27.33 indicates a quite expensive valuation of RCH.
- The rest of the industry has a similar Price/Earnings ratio as RCH.
- RCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.92.
- With a Price/Forward Earnings ratio of 23.24, RCH is valued on the expensive side.
- 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 27.78, RCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are cheaper than RCH, based on the Enterprise Value to EBITDA ratio.
- 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 | 12.43 | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.55
PEG (5Y)41.54
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
- RCH has a Yearly Dividend Yield of 1.48%. Purely for dividend investing, there may be better candidates out there.
- RCH's Dividend Yield is comparable with the industry average which is at 5.96.
- Compared to an average S&P500 Dividend Yield of 1.81, RCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
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.
- RCH has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)25%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- RCH pays out 39.48% of its income as dividend. This is a sustainable payout ratio.
- The dividend of RCH is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
TSX:RCH (2/6/2026, 7:00:00 PM)
42.36
-0.04 (-0.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-15 2026-01-15/dmh
Earnings (Next)04-08 2026-04-08
Inst Owners55.84%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.33B
Revenue(TTM)1.96B
Net Income(TTM)85.82M
Analysts47.5
Price Target41.31 (-2.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
Yearly Dividend0.62
Dividend Growth(5Y)25%
DP39.48%
Div Incr Years0
Div Non Decr Years4
Ex-Date01-29 2026-01-29 (0.1566)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.61%
Min EPS beat(2)0.1%
Max EPS beat(2)5.12%
EPS beat(4)2
Avg EPS beat(4)-5.49%
Min EPS beat(4)-23.84%
Max EPS beat(4)5.12%
EPS beat(8)3
Avg EPS beat(8)-5.32%
EPS beat(12)4
Avg EPS beat(12)-4.06%
EPS beat(16)7
Avg EPS beat(16)-1.87%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.06%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.47%
Revenue beat(8)1
Avg Revenue beat(8)-0.74%
Revenue beat(12)3
Avg Revenue beat(12)0.08%
Revenue beat(16)5
Avg Revenue beat(16)0.45%
PT rev (1m)0%
PT rev (3m)-13.89%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.28%
EPS NY rev (3m)-3.22%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.33 | ||
| Fwd PE | 23.24 | ||
| P/S | 1.18 | ||
| P/FCF | 12.43 | ||
| P/OCF | 11.49 | ||
| P/B | 2.42 | ||
| P/tB | 3.15 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)1.55
EY3.66%
EPS(NY)1.82
Fwd EY4.3%
FCF(TTM)3.41
FCFY8.05%
OCF(TTM)3.69
OCFY8.7%
SpS35.77
BVpS17.52
TBVpS13.44
PEG (NY)1.55
PEG (5Y)41.54
Graham Number24.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.94% | ||
| ROE | 8.92% | ||
| ROCE | 11.78% | ||
| ROIC | 8.51% | ||
| ROICexc | 8.85% | ||
| ROICexgc | 10.99% | ||
| OM | 7.03% | ||
| PM (TTM) | 4.37% | ||
| GM | 10.89% | ||
| FCFM | 9.53% |
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-Score6
Asset Turnover1.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 20.05% | ||
| Cap/Sales | 0.77% | ||
| Interest Coverage | 42.6 | ||
| Cash Conversion | 94.62% | ||
| Profit Quality | 218.09% | ||
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.18 | ||
| Altman-Z | 5.9 |
F-Score6
WACC8.65%
ROIC/WACC0.98
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)0.65%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4.55%
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue 1Y (TTM)7.19%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%7.28%
Revenue Next Year4.74%
Revenue Next 2Y4.34%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y-16.7%
EBIT growth 5Y3.97%
EBIT Next Year67.83%
EBIT Next 3Y21.75%
EBIT Next 5YN/A
FCF growth 1Y81.72%
FCF growth 3YN/A
FCF growth 5Y7.02%
OCF growth 1Y51.53%
OCF growth 3YN/A
OCF growth 5Y6.79%
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 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.
Can you provide the profitability details for RICHELIEU HARDWARE LTD?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of RICHELIEU HARDWARE LTD (RCH.CA) stock?
The Price/Earnings (PE) ratio for RICHELIEU HARDWARE LTD (RCH.CA) is 27.33 and the Price/Book (PB) ratio is 2.42.
How sustainable is the dividend of RICHELIEU HARDWARE LTD (RCH.CA) stock?
The dividend rating of RICHELIEU HARDWARE LTD (RCH.CA) is 5 / 10 and the dividend payout ratio is 39.48%.