RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
39.28 CAD
+0.56 (+1.45%)
Overall RCH gets a fundamental rating of 5 out of 10. We evaluated RCH against 12 industry peers in the Trading Companies & Distributors industry. While RCH has a great health rating, its profitability is only average at the moment. 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.
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 has a Return On Invested Capital (8.34%) which is in line with its industry peers.
RCH had an Average Return On Invested Capital over the past 3 years of 12.04%. This 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 Profit Margin of 4.39%. This is in the better half of the industry: RCH outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of RCH has declined.
RCH's Operating Margin of 6.99% 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 has a worse Gross Margin (10.83%) than 83.33% of its industry peers.
RCH's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so RCH is still 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
RCH has a worse debt/assets ratio than last year.
2.2 Solvency
RCH has an Altman-Z score of 5.63. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
RCH has a better Altman-Z score (5.63) 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.
With an excellent Debt to FCF ratio value of 1.89, RCH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
RCH has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of RCH (0.23) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.63 |
ROIC/WACC0.95
WACC8.8%
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.
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.
With a Quick ratio value of 1.12, RCH perfoms like the industry average, outperforming 58.33% 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%.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 6.61% in the last 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.
The Revenue is expected to grow by 4.89% on average over the next years.
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
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
The Price/Earnings ratio is 25.67, which means the current valuation is very expensive for RCH.
The rest of the industry has a similar Price/Earnings ratio as RCH.
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
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCH.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.04 | ||
| EV/EBITDA | 11.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates RCH does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)25.67
PEG (5Y)4.85
EPS Next 2Y8.65%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.67%. Purely for dividend investing, there may be better candidates out there.
RCH's Dividend Yield is comparable with the industry average which is at 8.75.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
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
39.86% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
The dividend of RCH is growing, but the earnings are growing slower. 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 Cap2.17B
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 | 1.67% |
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 | 15.04 | ||
| P/OCF | 13.49 | ||
| P/B | 2.27 | ||
| P/tB | 2.94 | ||
| EV/EBITDA | 11.16 |
EPS(TTM)1.53
EY3.9%
EPS(NY)1.82
Fwd EY4.63%
FCF(TTM)2.61
FCFY6.65%
OCF(TTM)2.91
OCFY7.41%
SpS34.94
BVpS17.31
TBVpS13.37
PEG (NY)25.67
PEG (5Y)4.85
Graham Number24.41
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 | 5.63 |
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.