RICHELIEU HARDWARE LTD (RCH.CA) Fundamental Analysis & Valuation
TSX:RCH • CA76329W1032
Current stock price
39.91 CAD
-0.66 (-1.63%)
Last:
This RCH.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. RCH.CA Profitability Analysis
1.1 Basic Checks
- RCH had positive earnings in the past year.
- In the past year RCH had a positive cash flow from operations.
- 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
- With a decent Return On Assets value of 5.95%, RCH is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- The Return On Equity of RCH (8.98%) is comparable to the rest of the industry.
- With a Return On Invested Capital value of 8.50%, RCH perfoms like the industry average, outperforming 58.33% 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 7.79%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 8.98% | ||
| ROIC | 8.5% |
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
- Looking at the Profit Margin, with a value of 4.35%, RCH is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- RCH's Profit Margin has declined in the last couple of years.
- The Operating Margin of RCH (6.95%) is better than 75.00% of its industry peers.
- In the last couple of years the Operating Margin of RCH has declined.
- RCH's Gross Margin of 10.81% is on the low side compared to the rest of the industry. RCH is outperformed by 83.33% of its industry peers.
- In the last couple of years the Gross Margin of RCH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.95% | ||
| PM (TTM) | 4.35% | ||
| GM | 10.81% |
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. RCH.CA Health Analysis
2.1 Basic Checks
- RCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for RCH has been reduced compared to 1 year ago.
- Compared to 5 years ago, RCH has less shares outstanding
- Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.74 indicates that RCH is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.74, RCH belongs to the best of the industry, outperforming 91.67% of the companies in the same industry.
- The Debt to FCF ratio of RCH is 1.38, which is an excellent value as it means it would take RCH, only 1.38 years of fcf income to pay off all of its debts.
- RCH has a better Debt to FCF ratio (1.38) than 100.00% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that RCH is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.23, RCH belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 5.74 |
ROIC/WACC1.05
WACC8.12%
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 better Current ratio (3.21) than 91.67% of its industry peers.
- A Quick Ratio of 1.10 indicates that RCH should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.10, RCH perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.1 |
3. RCH.CA Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 2.63% over the past year.
- The Earnings Per Share has been growing slightly by 0.66% on average over the past years.
- Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 6.37% 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)2.63%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%4.96%
3.2 Future
- RCH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
- Based on estimates for the next years, RCH will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year6.04%
Revenue Next 2Y5.13%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. RCH.CA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 25.58, the valuation of RCH can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of RCH indicates a slightly more expensive valuation: RCH is more expensive than 66.67% of the companies listed in the same industry.
- RCH's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.79.
- With a Price/Forward Earnings ratio of 18.82, RCH is valued on the expensive side.
- RCH's Price/Forward Earnings ratio is in line with the industry average.
- RCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 18.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, RCH is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
- RCH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.85 | ||
| EV/EBITDA | 11.42 |
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)1.45
PEG (5Y)38.88
EPS Next 2Y16.98%
EPS Next 3Y11.89%
5. RCH.CA Dividend Analysis
5.1 Amount
- RCH has a Yearly Dividend Yield of 1.61%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 5.75, RCH has a dividend in line with its industry peers.
- RCH's Dividend Yield is comparable with the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
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 past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)25%
Div Incr Years1
Div Non Decr Years5
5.3 Sustainability
- RCH pays out 39.38% of its income as dividend. This is a sustainable payout ratio.
- RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.38%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
RCH.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:RCH (4/22/2026, 7:00:00 PM)
39.91
-0.66 (-1.63%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)04-09 2026-04-09/dmh
Earnings (Next)07-08 2026-07-08
Inst Owners57.88%
Inst Owner ChangeN/A
Ins Owners8.08%
Ins Owner ChangeN/A
Market Cap2.20B
Revenue(TTM)1.99B
Net Income(TTM)86.37M
Analysts47.5
Price Target42.84 (7.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.61% |
Yearly Dividend0.62
Dividend Growth(5Y)25%
DP39.38%
Div Incr Years1
Div Non Decr Years5
Ex-Date04-23 2026-04-23 (0.1566)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-7.05%
Min EPS beat(2)-14.19%
Max EPS beat(2)0.1%
EPS beat(4)2
Avg EPS beat(4)-3.08%
Min EPS beat(4)-14.19%
Max EPS beat(4)5.12%
EPS beat(8)3
Avg EPS beat(8)-5.74%
EPS beat(12)3
Avg EPS beat(12)-5.37%
EPS beat(16)7
Avg EPS beat(16)-1.85%
Revenue beat(2)0
Avg Revenue beat(2)-0.89%
Min Revenue beat(2)-1.61%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-1.63%
Max Revenue beat(4)-0.17%
Revenue beat(8)1
Avg Revenue beat(8)-0.61%
Revenue beat(12)2
Avg Revenue beat(12)-0.45%
Revenue beat(16)5
Avg Revenue beat(16)0.63%
PT rev (1m)0%
PT rev (3m)35.48%
EPS NQ rev (1m)-1.04%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)-0.32%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.58 | ||
| Fwd PE | 18.82 | ||
| P/S | 1.11 | ||
| P/FCF | 10.85 | ||
| P/OCF | 10.17 | ||
| P/B | 2.28 | ||
| P/tB | 2.98 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)1.56
EY3.91%
EPS(NY)2.12
Fwd EY5.31%
FCF(TTM)3.68
FCFY9.21%
OCF(TTM)3.92
OCFY9.83%
SpS36.1
BVpS17.48
TBVpS13.39
PEG (NY)1.45
PEG (5Y)38.88
Graham Number24.7671 (-37.94%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.95% | ||
| ROE | 8.98% | ||
| ROCE | 11.82% | ||
| ROIC | 8.5% | ||
| ROICexc | 8.72% | ||
| ROICexgc | 10.8% | ||
| OM | 6.95% | ||
| PM (TTM) | 4.35% | ||
| GM | 10.81% | ||
| FCFM | 10.19% |
ROA(3y)6.86%
ROA(5y)9.68%
ROE(3y)10.17%
ROE(5y)14.48%
ROIC(3y)9.42%
ROIC(5y)12.77%
ROICexc(3y)9.81%
ROICexc(5y)13.38%
ROICexgc(3y)12.12%
ROICexgc(5y)16.8%
ROCE(3y)13.17%
ROCE(5y)18.19%
ROICexgc growth 3Y-18.9%
ROICexgc growth 5Y-11.03%
ROICexc growth 3Y-19.23%
ROICexc growth 5Y-10.21%
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%
F-Score7
Asset Turnover1.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 17.66% | ||
| Cap/Sales | 0.68% | ||
| Interest Coverage | 56.4 | ||
| Cash Conversion | 100.53% | ||
| Profit Quality | 234.23% | ||
| Current Ratio | 3.21 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 5.74 |
F-Score7
WACC8.12%
ROIC/WACC1.05
Cap/Depr(3y)44.48%
Cap/Depr(5y)45.2%
Cap/Sales(3y)1.6%
Cap/Sales(5y)1.45%
Profit Quality(3y)181.08%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.63%
EPS 3Y-19.58%
EPS 5Y0.66%
EPS Q2Q%4%
EPS Next Y17.62%
EPS Next 2Y16.98%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue 1Y (TTM)6.37%
Revenue growth 3Y2.9%
Revenue growth 5Y11.73%
Sales Q2Q%4.96%
Revenue Next Year6.04%
Revenue Next 2Y5.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y4.26%
EBIT growth 3Y-16.7%
EBIT growth 5Y3.97%
EBIT Next Year68.88%
EBIT Next 3Y21.09%
EBIT Next 5YN/A
FCF growth 1Y-4.14%
FCF growth 3YN/A
FCF growth 5Y7.02%
OCF growth 1Y-15.26%
OCF growth 3YN/A
OCF growth 5Y6.79%
RICHELIEU HARDWARE LTD / RCH.CA Fundamental Analysis 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.
What is the profitability of RCH stock?
RICHELIEU HARDWARE LTD (RCH.CA) has a profitability rating of 4 / 10.
Can you provide the financial health for RCH stock?
The financial health rating of RICHELIEU HARDWARE LTD (RCH.CA) is 8 / 10.
Is the dividend of RICHELIEU HARDWARE LTD sustainable?
The dividend rating of RICHELIEU HARDWARE LTD (RCH.CA) is 5 / 10 and the dividend payout ratio is 39.38%.