RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
39.86 CAD
-0.13 (-0.33%)
We assign a fundamental rating of 5 out of 10 to RCH. RCH was compared to 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
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
The Return On Assets of RCH (5.87%) is better than 66.67% of its industry peers.
The Return On Equity of RCH (8.86%) is comparable to the rest of the industry.
The Return On Invested Capital of RCH (8.34%) is comparable to the rest of the industry.
RCH had an Average Return On Invested Capital over the past 3 years of 12.04%. This is above the industry average of 8.03%.
| 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's Profit Margin of 4.39% is fine compared to the rest of the industry. RCH outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of RCH has declined.
With a decent Operating Margin value of 6.99%, RCH is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Operating Margin of RCH has declined.
RCH has a worse Gross Margin (10.83%) 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 | 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.
RCH has less shares outstanding than it did 5 years ago.
The debt/assets ratio for RCH is higher compared to a year ago.
2.2 Solvency
RCH has an Altman-Z score of 5.70. 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 5.70, 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 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
RCH has a better Debt to FCF ratio (1.89) than 91.67% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
RCH has a better Debt to Equity ratio (0.23) than 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.99
WACC8.4%
2.3 Liquidity
A Current Ratio of 3.21 indicates that RCH has no problem at all paying its short term obligations.
RCH has a Current ratio of 3.21. This is amongst the best in the industry. RCH outperforms 91.67% of its industry peers.
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.
RCH has a Quick ratio of 1.12. This is in the better half of the industry: RCH outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased by -4.97% in the last year.
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 6.61%.
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)-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 5.56% on average over the next years.
EPS Next Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
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
RCH is valuated quite expensively with a Price/Earnings ratio of 26.05.
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 26.59, which is the current average of the S&P500 Index.
RCH is valuated rather expensively with a Price/Forward Earnings ratio of 21.93.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of RCH to the average of the S&P500 Index (24.03), we can say RCH is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 21.93 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as RCH.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.18 | ||
| EV/EBITDA | 11.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)19.62
PEG (5Y)4.92
EPS Next 2Y8.65%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
RCH's Dividend Yield is comparable with the industry average which is at 6.33.
RCH's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 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 3Y10.55%
TSX:RCH (12/24/2025, 7:00:00 PM)
39.86
-0.13 (-0.33%)
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 Cap2.19B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target31.62 (-20.67%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)-13.89%
PT rev (3m)-16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)0.32%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.05 | ||
| Fwd PE | 21.93 | ||
| P/S | 1.13 | ||
| P/FCF | 15.18 | ||
| P/OCF | 13.61 | ||
| P/B | 2.29 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 11.44 |
EPS(TTM)1.53
EY3.84%
EPS(NY)1.82
Fwd EY4.56%
FCF(TTM)2.63
FCFY6.59%
OCF(TTM)2.93
OCFY7.35%
SpS35.14
BVpS17.41
TBVpS13.44
PEG (NY)19.62
PEG (5Y)4.92
Graham Number24.48
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 | 5.7 |
F-Score5
WACC8.4%
ROIC/WACC0.99
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 Y1.33%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year8.06%
Revenue Next 2Y6.38%
Revenue Next 3Y5.56%
Revenue Next 5YN/A
EBIT growth 1Y-2.56%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.97%
EBIT Next 3Y23.64%
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 1.33% in the next year.