RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
41.52 CAD
+0.55 (+1.34%)
Taking everything into account, RCH scores 5 out of 10 in our fundamental rating. RCH was compared to 12 industry peers in the Trading Companies & Distributors industry. RCH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. RCH is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
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.
Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.87%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.86%, RCH is in line with its industry, outperforming 58.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.34%, RCH is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RCH 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
The Profit Margin of RCH (4.39%) is better than 75.00% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
RCH's Operating Margin of 6.99% is fine compared to the rest 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 10.83%, RCH is doing worse than 83.33% of the companies in the same industry.
RCH's Gross Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), RCH is creating some value.
RCH has less shares outstanding than it did 1 year ago.
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 5.80 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH's Altman-Z score of 5.80 is amongst the best of the industry. RCH outperforms 83.33% of its industry peers.
The Debt to FCF ratio of RCH is 1.89, which is an excellent value as it means it would take RCH, only 1.89 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.89, RCH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
RCH has a Debt to Equity ratio of 0.23. This is amongst the best in the industry. RCH outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.8 |
ROIC/WACC0.99
WACC8.39%
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.
A Quick Ratio of 1.12 indicates that RCH should not have too much problems paying 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
RCH shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.97%.
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.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 6.61% in the last year.
Measured over the past years, RCH shows a quite strong growth in Revenue. The Revenue has been growing by 11.96% on average per year.
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
Based on estimates for the next years, RCH will show a small growth in Earnings Per Share. The EPS will grow by 7.97% on average per year.
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 27.14.
RCH's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.19. RCH is around the same levels.
A Price/Forward Earnings ratio of 22.84 indicates a rather expensive valuation of RCH.
RCH's Price/Forward Earnings ratio is in line with the industry average.
RCH's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 22.84 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. RCH is more expensive than 66.67% 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 | 15.81 | ||
| EV/EBITDA | 11.84 |
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)20.44
PEG (5Y)5.13
EPS Next 2Y8.65%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.50%, RCH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.09, RCH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 1.92, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
5.2 History
On average, the dividend of RCH grows each year by 18.82%, 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)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 (1/9/2026, 7:00:00 PM)
41.52
+0.55 (+1.34%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.84%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.28B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target31.62 (-23.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.5% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.86%
Div Incr Years0
Div Non Decr Years4
Ex-DateN/A
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)0%
PT rev (3m)-16.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.06%
EPS NY rev (1m)0%
EPS NY rev (3m)3.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.14 | ||
| Fwd PE | 22.84 | ||
| P/S | 1.18 | ||
| P/FCF | 15.81 | ||
| P/OCF | 14.18 | ||
| P/B | 2.39 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 11.84 |
EPS(TTM)1.53
EY3.68%
EPS(NY)1.82
Fwd EY4.38%
FCF(TTM)2.63
FCFY6.32%
OCF(TTM)2.93
OCFY7.05%
SpS35.14
BVpS17.41
TBVpS13.44
PEG (NY)20.44
PEG (5Y)5.13
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 | 5.8 |
F-Score5
WACC8.39%
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 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 27.14 and the Price/Book (PB) ratio is 2.39.
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 39.86%.