RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to RCH. RCH was compared to 13 industry peers in the Trading Companies & Distributors industry. While RCH has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years RCH has been profitable.
Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
RCH's Return On Assets of 6.15% is fine compared to the rest of the industry. RCH outperforms 61.54% of its industry peers.
With a Return On Equity value of 9.26%, RCH perfoms like the industry average, outperforming 46.15% of the companies in the same industry.
RCH has a Return On Invested Capital of 8.40%. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for RCH is above the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.26% | ||
| ROIC | 8.4% |
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 an excellent Profit Margin value of 4.68%, RCH belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
In the last couple of years the Profit Margin of RCH has declined.
With a decent Operating Margin value of 7.23%, RCH is doing good in the industry, outperforming 76.92% of the companies in the same industry.
In the last couple of years the Operating Margin of RCH has declined.
RCH has a Gross Margin of 10.99%. This is amonst the worse of the industry: RCH underperforms 84.62% of its industry peers.
RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.23% | ||
| PM (TTM) | 4.68% | ||
| GM | 10.99% |
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
Compared to 5 years ago, RCH has less shares outstanding
The debt/assets ratio for RCH is higher compared to a year ago.
2.2 Solvency
RCH has an Altman-Z score of 5.50. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.50, RCH belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
RCH has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as RCH would need 2.57 years to pay back of all of its debts.
RCH has a better Debt to FCF ratio (2.57) than 69.23% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that RCH is not too dependend on debt financing.
RCH has a better Debt to Equity ratio (0.24) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 5.5 |
ROIC/WACC0.9
WACC9.3%
2.3 Liquidity
RCH has a Current Ratio of 3.12. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
RCH has a better Current ratio (3.12) than 69.23% of its industry peers.
A Quick Ratio of 1.05 indicates that RCH should not have too much problems paying its short term obligations.
RCH has a Quick ratio of 1.05. This is in the lower half of the industry: RCH underperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
RCH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -22.61%.
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.
RCH shows a small growth in Revenue. In the last year, the Revenue has grown by 2.49%.
RCH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.96% yearly.
EPS 1Y (TTM)-22.61%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-13.73%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%4.99%
3.2 Future
RCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.71% yearly.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.00% yearly.
EPS Next Y21%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
EPS Next 5Y9.71%
Revenue Next Year8.11%
Revenue Next 2Y6%
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
RCH is valuated rather expensively with a Price/Earnings ratio of 23.21.
Compared to the rest of the industry, the Price/Earnings ratio of RCH indicates a slightly more expensive valuation: RCH is more expensive than 69.23% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. RCH is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 19.18, the valuation of RCH can be described as rather expensive.
RCH's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, RCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, RCH is valued a bit more expensive than 61.54% of the companies in the same industry.
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 | 19.18 | ||
| EV/EBITDA | 10.65 |
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)1.1
PEG (5Y)4.39
EPS Next 2Y20.26%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.74%.
RCH's Dividend Yield is comparable with the industry average which is at 4.05.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
5.2 History
On average, the dividend of RCH grows each year by 18.82%, 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)18.82%
Div Incr Years3
Div Non Decr Years4
5.3 Sustainability
39.07% of the earnings are spent on dividend by RCH. This is a low number and sustainable payout ratio.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.07%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
TSX:RCH (3/7/2025, 7:00:00 PM)
35.74
+0.57 (+1.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.7%
Inst Owner ChangeN/A
Ins Owners8.03%
Ins Owner ChangeN/A
Market Cap1.98B
Analysts47.5
Price Target44.12 (23.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.74% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.07%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.22%
Min EPS beat(2)-12.7%
Max EPS beat(2)6.25%
EPS beat(4)1
Avg EPS beat(4)-5.16%
Min EPS beat(4)-12.7%
Max EPS beat(4)6.25%
EPS beat(8)2
Avg EPS beat(8)-3.34%
EPS beat(12)5
Avg EPS beat(12)-0.66%
EPS beat(16)9
Avg EPS beat(16)7.55%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.42%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)3
Avg Revenue beat(8)0.65%
Revenue beat(12)5
Avg Revenue beat(12)0.95%
Revenue beat(16)9
Avg Revenue beat(16)2.33%
PT rev (1m)0%
PT rev (3m)-1.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.14%
EPS NY rev (1m)0%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.21 | ||
| Fwd PE | 19.18 | ||
| P/S | 1.08 | ||
| P/FCF | 19.18 | ||
| P/OCF | 14.8 | ||
| P/B | 2.13 | ||
| P/tB | 2.74 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)1.54
EY4.31%
EPS(NY)1.86
Fwd EY5.21%
FCF(TTM)1.86
FCFY5.21%
OCF(TTM)2.42
OCFY6.76%
SpS33.14
BVpS16.76
TBVpS13.05
PEG (NY)1.1
PEG (5Y)4.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.15% | ||
| ROE | 9.26% | ||
| ROCE | 11.98% | ||
| ROIC | 8.4% | ||
| ROICexc | 8.71% | ||
| ROICexgc | 10.67% | ||
| OM | 7.23% | ||
| PM (TTM) | 4.68% | ||
| GM | 10.99% | ||
| FCFM | 5.62% |
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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 2.57 | ||
| Debt/EBITDA | 1.09 | ||
| Cap/Depr | 44.31% | ||
| Cap/Sales | 1.67% | ||
| Interest Coverage | 56.8 | ||
| Cash Conversion | 66.31% | ||
| Profit Quality | 120.12% | ||
| Current Ratio | 3.12 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | 5.5 |
F-Score4
WACC9.3%
ROIC/WACC0.9
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)-22.61%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-13.73%
EPS Next Y21%
EPS Next 2Y20.26%
EPS Next 3Y10.37%
EPS Next 5Y9.71%
Revenue 1Y (TTM)2.49%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%4.99%
Revenue Next Year8.11%
Revenue Next 2Y6%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-21.84%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year68.41%
EBIT Next 3Y22.87%
EBIT Next 5Y16.82%
FCF growth 1Y-54.93%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y-50.66%
OCF growth 3Y8.55%
OCF growth 5Y8.65%