RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:RCH - CA76329W1032 - Common Stock
39.93 CAD
-0.52 (-1.29%)
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. RCH has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
RCH had a positive operating cash flow in the past year.
Each year in the past 5 years RCH has been profitable.
Of the past 5 years RCH 4 years had a positive operating cash flow.
1.2 Ratios
RCH's Return On Assets of 5.87% is fine compared to the rest of the industry. RCH outperforms 66.67% of its industry peers.
RCH has a Return On Equity (8.86%) which is in line with its industry peers.
RCH's Return On Invested Capital of 8.34% is in line compared to the rest of the industry. RCH outperforms 58.33% of its industry peers.
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 has a Profit Margin of 4.39%. 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 (6.99%) than 66.67% of its industry peers.
RCH's Operating Margin has declined in the last couple of years.
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.
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
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.
The number of shares outstanding for RCH has been reduced compared to 5 years ago.
The debt/assets ratio for RCH is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.69 indicates that RCH is not in any danger for bankruptcy at the moment.
RCH has a better Altman-Z score (5.69) than 83.33% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.89, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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 | 1.89 | ||
| Altman-Z | 5.69 |
ROIC/WACC0.99
WACC8.4%
2.3 Liquidity
RCH has a Current Ratio of 3.21. 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 3.21, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.12, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| 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.
The Revenue has been growing slightly by 6.61% in the past 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
RCH is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.97% yearly.
RCH is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.56% yearly.
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 26.10.
RCH's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.61. RCH is around the same levels.
The Price/Forward Earnings ratio is 21.96, which indicates a rather expensive current valuation of RCH.
The rest of the industry has a similar Price/Forward Earnings ratio as RCH.
The average S&P500 Price/Forward Earnings ratio is at 24.01. RCH is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.1 | ||
| Fwd PE | 21.96 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 15.21 | ||
| EV/EBITDA | 11.42 |
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)19.65
PEG (5Y)4.93
EPS Next 2Y8.65%
EPS Next 3Y10.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.51%, RCH has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.33, RCH has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, RCH has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
5.2 History
The dividend of RCH is nicely growing with an annual growth rate of 18.82%!
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
RCH pays out 39.86% 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.
DP39.86%
EPS Next 2Y8.65%
EPS Next 3Y10.55%
TSX:RCH (12/22/2025, 7:00:00 PM)
39.93
-0.52 (-1.29%)
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 (-20.81%)
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 | 26.1 | ||
| Fwd PE | 21.96 | ||
| P/S | 1.14 | ||
| P/FCF | 15.21 | ||
| P/OCF | 13.63 | ||
| P/B | 2.29 | ||
| P/tB | 2.97 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)1.53
EY3.83%
EPS(NY)1.82
Fwd EY4.55%
FCF(TTM)2.63
FCFY6.58%
OCF(TTM)2.93
OCFY7.33%
SpS35.14
BVpS17.41
TBVpS13.44
PEG (NY)19.65
PEG (5Y)4.93
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 | 5.69 |
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.