RICHELIEU HARDWARE LTD (RCH.CA) Fundamental Analysis & Valuation
TSX:RCH • CA76329W1032
Current stock price
41.58 CAD
+0.23 (+0.56%)
Last:
This RCH.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RCH.CA Profitability Analysis
1.1 Basic Checks
- In the past year RCH was profitable.
- RCH had a positive operating cash flow in the past year.
- 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
- The Return On Assets of RCH (5.94%) is better than 66.67% of its industry peers.
- The Return On Equity of RCH (8.92%) is comparable to the rest of the 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 7.84%.
| 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.
- RCH's Profit Margin has declined in the last couple of years.
- RCH has a Operating Margin of 7.03%. This is in the better half 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 (10.89%) 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. RCH.CA Health Analysis
2.1 Basic Checks
- RCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
- An Altman-Z score of 5.85 indicates that RCH is not in any danger for bankruptcy at the moment.
- The Altman-Z score of RCH (5.85) 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.
- With an excellent Debt to FCF ratio value of 1.48, RCH belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
- 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 | 5.85 |
ROIC/WACC1.17
WACC7.28%
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.
- Looking at the Current ratio, with a value of 3.29, RCH belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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.
- The Quick ratio of RCH (1.18) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.29 | ||
| Quick Ratio | 1.18 |
3. RCH.CA Growth Analysis
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.
- The Revenue has been growing slightly by 7.19% in the past 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
- RCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
- RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.74% yearly.
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year5.94%
Revenue Next 2Y4.74%
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. RCH.CA Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 26.83, which means the current valuation is very expensive for RCH.
- RCH's Price/Earnings is on the same level as the industry average.
- RCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 22.81, the valuation of RCH can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
- When comparing the Price/Forward Earnings ratio of RCH to the average of the S&P500 Index (23.83), we can say RCH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.83 | ||
| Fwd PE | 22.81 |
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.
- RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.21 | ||
| EV/EBITDA | 11.66 |
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)1.52
PEG (5Y)40.77
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. RCH.CA Dividend Analysis
5.1 Amount
- RCH has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.80, RCH has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.91, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
- On average, the dividend of RCH grows each year by 25.00%, which is quite nice.
- 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)25%
Div Incr Years0
Div Non Decr Years4
5.3 Sustainability
- 39.48% 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.
DP39.48%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
RCH.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RCH (3/13/2026, 7:00:00 PM)
41.58
+0.23 (+0.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)01-15 2026-01-15/dmh
Earnings (Next)04-09 2026-04-09
Inst Owners58.22%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.29B
Revenue(TTM)1.96B
Net Income(TTM)85.82M
Analysts47.5
Price Target42.84 (3.03%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)3.7%
PT rev (3m)35.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.83 | ||
| Fwd PE | 22.81 | ||
| P/S | 1.16 | ||
| P/FCF | 12.21 | ||
| P/OCF | 11.29 | ||
| P/B | 2.38 | ||
| P/tB | 3.1 | ||
| EV/EBITDA | 11.66 |
EPS(TTM)1.55
EY3.73%
EPS(NY)1.82
Fwd EY4.38%
FCF(TTM)3.41
FCFY8.19%
OCF(TTM)3.68
OCFY8.86%
SpS35.74
BVpS17.5
TBVpS13.43
PEG (NY)1.52
PEG (5Y)40.77
Graham Number24.71
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 | 5.85 |
F-Score6
WACC7.28%
ROIC/WACC1.17
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 Year5.94%
Revenue Next 2Y4.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.21%
EBIT growth 3Y-16.7%
EBIT growth 5Y3.97%
EBIT Next Year68.88%
EBIT Next 3Y21.09%
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 Fundamental Analysis 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 26.83 and the Price/Book (PB) ratio is 2.38.
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%.