RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:RCH • CA76329W1032
40.72 CAD
+0.24 (+0.59%)
Last: Jan 30, 2026, 07:00 PM
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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- RCH had positive earnings in the past year.
- RCH had a positive operating cash flow in the past year.
- In the past 5 years RCH has always been profitable.
- Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
- RCH has a Return On Assets of 5.94%. This is in the better half of the industry: RCH outperforms 66.67% of its industry peers.
- The Return On Equity of RCH (8.92%) is comparable to the rest of the industry.
- With a decent Return On Invested Capital value of 8.51%, RCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
- 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
- RCH has a Profit Margin of 4.37%. 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 has a better Operating Margin (7.03%) than 66.67% of its industry peers.
- RCH's Operating Margin has declined in the last couple of years.
- The Gross Margin of RCH (10.89%) is worse than 83.33% of its industry peers.
- RCH's Gross Margin has declined in the last couple of years.
| 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
- RCH has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.79 indicates that RCH is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 5.79, RCH belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
- RCH has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
- RCH has a Debt to FCF ratio of 1.48. This is amongst the best in the industry. RCH outperforms 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.
- The Debt to Equity ratio of RCH (0.23) is better than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 5.79 |
ROIC/WACC1
WACC8.5%
2.3 Liquidity
- A Current Ratio of 3.29 indicates that RCH has no problem at all paying its short term obligations.
- RCH's Current ratio of 3.29 is amongst the best of the industry. RCH outperforms 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.
- 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. 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
- The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
- Based on estimates for the next years, RCH will show a small growth in Revenue. The Revenue will grow by 4.34% on average per year.
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
- 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. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 26.27, the valuation of RCH can be described as expensive.
- RCH's Price/Earnings ratio is in line with the industry average.
- RCH is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 22.34, 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 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.27 | ||
| Fwd PE | 22.34 |
4.2 Price Multiples
- RCH's Enterprise Value to EBITDA ratio is in line with the industry average.
- RCH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.95 | ||
| EV/EBITDA | 11.43 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.49
PEG (5Y)39.93
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
- RCH has a Yearly Dividend Yield of 1.55%.
- Compared to an average industry Dividend Yield of 6.07, RCH has a dividend in line with its industry peers.
- RCH's Dividend Yield is comparable with the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
- RCH pays out 39.48% of its income as dividend. This is a 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%
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 26.27 and the Price/Book (PB) ratio is 2.32.
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%.