RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RCH • CA76329W1032
43.49 CAD
+0.55 (+1.28%)
Last: Feb 10, 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. 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.
- In the past year RCH had a positive cash flow from operations.
- RCH had positive earnings in each of the past 5 years.
- Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
- RCH's Return On Assets of 5.94% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 8.92%, RCH is in line with its industry, outperforming 58.33% of the companies in the same industry.
- The Return On Invested Capital of RCH (8.51%) is better than 66.67% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Profit Margin value of 4.37%, 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.
- 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.
- In the last couple of years the Operating Margin of RCH has declined.
- The Gross Margin of RCH (10.89%) 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 | 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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCH is still creating some value.
- RCH has less shares outstanding than it did 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 5.94 indicates that RCH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RCH (5.94) is better than 83.33% of its industry peers.
- The Debt to FCF ratio of RCH is 1.48, which is an excellent value as it means it would take RCH, only 1.48 years of fcf income to pay off all of its debts.
- RCH has a better Debt to FCF ratio (1.48) than 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.
- 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 | 1.48 | ||
| Altman-Z | 5.94 |
ROIC/WACC0.99
WACC8.6%
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.
- The Current ratio of RCH (3.29) is better than 91.67% of its industry peers.
- RCH has a Quick Ratio of 1.18. 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 1.18, 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 | 3.29 | ||
| Quick Ratio | 1.18 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 0.65% over the past year.
- RCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.66% yearly.
- Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 7.19% 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)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
- 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.
- 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
- 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.
- 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
- With a Price/Earnings ratio of 28.06, RCH can be considered very expensive at the moment.
- RCH's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of RCH to the average of the S&P500 Index (28.03), we can say RCH is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 23.86, the valuation of RCH can be described as rather expensive.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
- RCH is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.97, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.06 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCH is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.76 | ||
| EV/EBITDA | 12 |
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)1.59
PEG (5Y)42.64
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.48%, RCH has a reasonable but not impressive dividend return.
- RCH's Dividend Yield is comparable with the industry average which is at 5.96.
- RCH's Dividend Yield is comparable with the S&P500 average which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.48% |
5.2 History
- The dividend of RCH is nicely growing with an annual growth rate of 25.00%!
- 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.
- RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.48%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
TSX:RCH (2/10/2026, 7:00:00 PM)
43.49
+0.55 (+1.28%)
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 Cap2.39B
Revenue(TTM)1.96B
Net Income(TTM)85.82M
Analysts47.5
Price Target41.31 (-5.01%)
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)30.65%
PT rev (3m)12.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.28%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.06 | ||
| Fwd PE | 23.86 | ||
| P/S | 1.22 | ||
| P/FCF | 12.76 | ||
| P/OCF | 11.8 | ||
| P/B | 2.48 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 12 |
EPS(TTM)1.55
EY3.56%
EPS(NY)1.82
Fwd EY4.19%
FCF(TTM)3.41
FCFY7.84%
OCF(TTM)3.69
OCFY8.47%
SpS35.77
BVpS17.52
TBVpS13.44
PEG (NY)1.59
PEG (5Y)42.64
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 | 5.94 |
F-Score6
WACC8.6%
ROIC/WACC0.99
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 28.06 and the Price/Book (PB) ratio is 2.48.
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%.