RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
TSX:RCH - Toronto Stock Exchange - CA76329W1032 - Common Stock - Currency: CAD
RCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 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
RCH had positive earnings in the past year.
RCH had a positive operating cash flow in the past year.
Each year in the past 5 years RCH has been profitable.
RCH had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
RCH has a Return On Assets of 5.70%. This is in the better half of the industry: RCH outperforms 76.92% of its industry peers.
Looking at the Return On Equity, with a value of 8.93%, RCH is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 7.86%, RCH is in the better half of the industry, outperforming 76.92% 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 7.36%.
The last Return On Invested Capital (7.86%) for RCH is well below the 3 year average (12.04%), which needs to be investigated, but indicates that RCH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 8.93% | ||
| ROIC | 7.86% |
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 4.52% is fine compared to the rest of the industry. RCH outperforms 76.92% of its industry peers.
In the last couple of years the Profit Margin of RCH has declined.
The Operating Margin of RCH (7.09%) is better than 69.23% 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 10.89%, RCH is doing worse than 84.62% of the companies in the same industry.
RCH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.09% | ||
| PM (TTM) | 4.52% | ||
| GM | 10.89% |
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 5.04. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
RCH's Altman-Z score of 5.04 is amongst the best of the industry. RCH outperforms 84.62% of its industry peers.
The Debt to FCF ratio of RCH is 3.06, which is a good value as it means it would take RCH, 3.06 years of fcf income to pay off all of its debts.
RCH has a better Debt to FCF ratio (3.06) than 61.54% of its industry peers.
RCH has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
RCH has a Debt to Equity ratio of 0.30. This is in the better half of the industry: RCH outperforms 61.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.06 | ||
| Altman-Z | 5.04 |
ROIC/WACC0.91
WACC8.67%
2.3 Liquidity
RCH has a Current Ratio of 2.85. This indicates that RCH is financially healthy and has no problem in meeting its short term obligations.
RCH has a Current ratio of 2.85. This is in the better half of the industry: RCH outperforms 69.23% of its industry peers.
RCH has a Quick Ratio of 2.85. This is a bad value and indicates that RCH is not financially healthy enough and could expect problems in meeting its short term obligations.
RCH has a Quick ratio (0.93) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.85 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The earnings per share for RCH have decreased strongly by -18.28% in the last year.
RCH shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.29% yearly.
Looking at the last year, RCH shows a small growth in Revenue. The Revenue has grown by 4.21% in the last year.
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)-18.28%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-7.41%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%8.56%
3.2 Future
Based on estimates for the next years, RCH will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.76% on average per year.
The Revenue is expected to grow by 5.69% on average over the next years.
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.76%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
Revenue Next 3YN/A
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
A Price/Earnings ratio of 23.61 indicates a rather expensive valuation of RCH.
Based on the Price/Earnings ratio, RCH is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.19. RCH is around the same levels.
RCH is valuated correctly with a Price/Forward Earnings ratio of 16.41.
RCH's Price/Forward Earnings is on the same level as the industry average.
RCH is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.33, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 16.41 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as RCH.
RCH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.15 | ||
| EV/EBITDA | 10.79 |
4.3 Compensation for Growth
RCH's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
RCH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.44
PEG (5Y)4.46
EPS Next 2Y19.16%
EPS Next 3Y9.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, RCH has a reasonable but not impressive dividend return.
RCH's Dividend Yield is comparable with the industry average which is at 8.59.
RCH's Dividend Yield is slightly below the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
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
39.77% 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.
DP39.77%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
TSX:RCH (7/14/2025, 7:00:00 PM)
35.88
-0.12 (-0.33%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryTrading Companies & Distributors
Earnings (Last)
Earnings (Next)
Inst Owners55.23%
Inst Owner ChangeN/A
Ins Owners8.03%
Ins Owner ChangeN/A
Market Cap1.98B
Analysts47.5
Price Target38.51 (7.33%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend0.6
Dividend Growth(5Y)18.82%
DP39.77%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-8.79%
Min EPS beat(2)-23.84%
Max EPS beat(2)6.25%
EPS beat(4)1
Avg EPS beat(4)-8.39%
Min EPS beat(4)-23.84%
Max EPS beat(4)6.25%
EPS beat(8)1
Avg EPS beat(8)-6.51%
EPS beat(12)5
Avg EPS beat(12)-1.44%
EPS beat(16)8
Avg EPS beat(16)4.13%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.54%
Max Revenue beat(2)1.99%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)1.99%
Revenue beat(8)2
Avg Revenue beat(8)-0.19%
Revenue beat(12)5
Avg Revenue beat(12)1.17%
Revenue beat(16)8
Avg Revenue beat(16)2.03%
PT rev (1m)0%
PT rev (3m)-12.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-12.24%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 16.41 | ||
| P/S | 1.06 | ||
| P/FCF | 18.15 | ||
| P/OCF | 14.52 | ||
| P/B | 2.1 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 10.79 |
EPS(TTM)1.52
EY4.24%
EPS(NY)2.19
Fwd EY6.09%
FCF(TTM)1.98
FCFY5.51%
OCF(TTM)2.47
OCFY6.89%
SpS33.76
BVpS17.08
TBVpS13.15
PEG (NY)1.44
PEG (5Y)4.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.7% | ||
| ROE | 8.93% | ||
| ROCE | 11.54% | ||
| ROIC | 7.86% | ||
| ROICexc | 8.08% | ||
| ROICexgc | 9.86% | ||
| OM | 7.09% | ||
| PM (TTM) | 4.52% | ||
| GM | 10.89% | ||
| FCFM | 5.86% |
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%
ROICexcg growth 3Y-26.6%
ROICexcg 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-Score4
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.06 | ||
| Debt/EBITDA | 1.38 | ||
| Cap/Depr | 38.6% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 44.05 | ||
| Cash Conversion | 67.21% | ||
| Profit Quality | 129.55% | ||
| Current Ratio | 2.85 | ||
| Quick Ratio | 0.93 | ||
| Altman-Z | 5.04 |
F-Score4
WACC8.67%
ROIC/WACC0.91
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)-18.28%
EPS 3Y-15.03%
EPS 5Y5.29%
EPS Q2Q%-7.41%
EPS Next Y16.41%
EPS Next 2Y19.16%
EPS Next 3Y9.1%
EPS Next 5Y8.76%
Revenue 1Y (TTM)4.21%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%8.56%
Revenue Next Year7.57%
Revenue Next 2Y5.69%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.31%
EBIT growth 3Y-12.46%
EBIT growth 5Y6.85%
EBIT Next Year61.33%
EBIT Next 3Y21.71%
EBIT Next 5Y16.85%
FCF growth 1Y1571.72%
FCF growth 3Y5.65%
FCF growth 5Y5.83%
OCF growth 1Y667.64%
OCF growth 3Y8.55%
OCF growth 5Y8.65%