RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
38.19 CAD
+0.14 (+0.37%)
Overall RCH gets a fundamental rating of 5 out of 10. We evaluated RCH against 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 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.
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
With a decent Return On Assets value of 5.87%, RCH is doing good in 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.
Measured over the past 3 years, the Average Return On Invested Capital for RCH is above the industry average of 7.69%.
| 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
Looking at the Profit Margin, with a value of 4.39%, RCH is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
RCH's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.99%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
RCH's Operating Margin has declined in the last couple of years.
RCH has a Gross Margin of 10.83%. This is amonst the worse of the industry: RCH underperforms 83.33% of its industry peers.
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.
Compared to 1 year ago, RCH has less shares outstanding
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
RCH has an Altman-Z score of 5.59. 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 5.59, 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's Debt to FCF ratio of 1.89 is amongst the best of 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.
RCH has a Debt to Equity ratio of 0.23. This is amongst the best in the industry. RCH outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.59 |
ROIC/WACC1.03
WACC8.1%
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.
RCH has a better Current ratio (3.21) than 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.
The Quick ratio of RCH (1.12) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing slightly by 5.29% on average over the past years.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 6.61% in the last year.
The Revenue has been growing by 11.96% on average over the past years. This is quite good.
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 5.12% on average over the next years.
EPS Next Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.97%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.96 indicates a rather expensive valuation of RCH.
Compared to the rest of the industry, the Price/Earnings ratio of RCH is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.13, RCH is valued at the same level.
With a Price/Forward Earnings ratio of 20.27, RCH is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, RCH is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 20.27 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of RCH is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of RCH indicates a slightly more expensive valuation: RCH is more expensive than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.63 | ||
| EV/EBITDA | 11.02 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.72
EPS Next 2Y10.6%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.42, RCH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.39, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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 2Y10.6%
EPS Next 3Y6.85%
TSX:RCH (11/5/2025, 7:00:00 PM)
38.19
+0.14 (+0.37%)
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 Cap2.11B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target36.72 (-3.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.62% |
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)-2.7%
PT rev (3m)-2.7%
EPS NQ rev (1m)5.88%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.06%
Revenue NQ rev (1m)0.97%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 20.27 | ||
| P/S | 1.09 | ||
| P/FCF | 14.63 | ||
| P/OCF | 13.11 | ||
| P/B | 2.21 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 11.02 |
EPS(TTM)1.53
EY4.01%
EPS(NY)1.88
Fwd EY4.93%
FCF(TTM)2.61
FCFY6.84%
OCF(TTM)2.91
OCFY7.63%
SpS34.94
BVpS17.31
TBVpS13.37
PEG (NY)N/A
PEG (5Y)4.72
Graham Number24.41
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 | 5.59 |
F-Score5
WACC8.1%
ROIC/WACC1.03
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 Y-2.28%
EPS Next 2Y10.6%
EPS Next 3Y6.85%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year7.08%
Revenue Next 2Y5.12%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.56%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year57.61%
EBIT Next 3Y21.03%
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 1 / 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 decline by -2.28% in the next year.