RICHELIEU HARDWARE LTD (RCH.CA) Fundamental Analysis & Valuation
TSX:RCH • CA76329W1032
Current stock price
40.34 CAD
-0.81 (-1.97%)
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
- 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.
- Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of RCH (5.94%) is better than 75.00% of its industry peers.
- RCH has a Return On Equity (8.92%) which is comparable to the rest of the industry.
- RCH has a Return On Invested Capital (8.51%) which is comparable to the rest of the industry.
- Measured over the past 3 years, the Average Return On Invested Capital for RCH is in line with the industry average of 7.80%.
| 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.
- In the last couple of years the Profit Margin of RCH has declined.
- 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.
- In the last couple of years the Operating Margin of RCH has declined.
- Looking at the Gross Margin, with a value of 10.89%, RCH is doing worse than 83.33% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH is creating some value.
- The number of shares outstanding for RCH has been reduced compared to 1 year ago.
- RCH has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
- RCH has an Altman-Z score of 5.76. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.76, RCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- 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 91.67% 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 | 5.76 |
ROIC/WACC1.14
WACC7.46%
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 100.00% 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.
- 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. RCH.CA Growth Analysis
3.1 Past
- RCH shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.65%.
- 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.
- 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
- 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 4.74% 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.
- 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. RCH.CA Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 26.03, RCH can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, RCH is valued a bit more expensive than 66.67% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.17, RCH is valued at the same level.
- Based on the Price/Forward Earnings ratio of 22.13, the valuation of RCH can be described as rather expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
- The average S&P500 Price/Forward Earnings ratio is at 23.05. RCH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 22.13 |
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 | 11.85 | ||
| EV/EBITDA | 11.35 |
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)1.48
PEG (5Y)39.56
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. RCH.CA Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.54%, RCH has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 5.72, RCH has a dividend in line with its industry peers.
- RCH's Dividend Yield is comparable with the S&P500 average which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)25%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- 39.48% 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.
DP39.48%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
RCH.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RCH (4/2/2026, 7:00:00 PM)
40.34
-0.81 (-1.97%)
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 Cap2.22B
Revenue(TTM)1.96B
Net Income(TTM)85.82M
Analysts47.5
Price Target42.84 (6.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.54% |
Yearly Dividend0.62
Dividend Growth(5Y)25%
DP39.48%
Div Incr Years1
Div Non Decr Years5
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)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)0%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.03 | ||
| Fwd PE | 22.13 | ||
| P/S | 1.13 | ||
| P/FCF | 11.85 | ||
| P/OCF | 10.96 | ||
| P/B | 2.31 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)1.55
EY3.84%
EPS(NY)1.82
Fwd EY4.52%
FCF(TTM)3.4
FCFY8.44%
OCF(TTM)3.68
OCFY9.12%
SpS35.72
BVpS17.49
TBVpS13.42
PEG (NY)1.48
PEG (5Y)39.56
Graham Number24.7
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 | 5.76 |
F-Score6
WACC7.46%
ROIC/WACC1.14
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.
What is the profitability of RCH stock?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for RCH stock?
The financial health rating of RICHELIEU HARDWARE LTD (RCH.CA) is 8 / 10.
Is the dividend of RICHELIEU HARDWARE LTD sustainable?
The dividend rating of RICHELIEU HARDWARE LTD (RCH.CA) is 5 / 10 and the dividend payout ratio is 39.48%.