RICHELIEU HARDWARE LTD (RCH.CA) Stock Fundamental Analysis
Canada - TSX:RCH - CA76329W1032 - Common Stock
36.75 CAD
-0.32 (-0.86%)
RCH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 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.
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
The Return On Assets of RCH (5.87%) is better than 66.67% of its industry peers.
RCH has a Return On Equity (8.86%) which is in line with its industry peers.
RCH has a Return On Invested Capital of 8.34%. This is comparable to the rest of the industry: RCH outperforms 58.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for RCH is above the industry average of 7.90%.
| 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's Profit Margin of 4.39% is fine compared to the rest of the industry. RCH outperforms 75.00% of its industry peers.
RCH's Profit Margin has declined in the last couple of years.
RCH has a better Operating Margin (6.99%) than 66.67% of its industry peers.
In the last couple of years the Operating Margin of RCH has declined.
RCH has a worse Gross Margin (10.83%) than 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
RCH has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, RCH has a worse debt to assets ratio.
2.2 Solvency
RCH has an Altman-Z score of 5.49. This indicates that RCH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of RCH (5.49) is better than 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.
RCH has a better Debt to FCF ratio (1.89) than 91.67% 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's Debt to Equity ratio of 0.23 is amongst the best of the industry. RCH outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.89 | ||
| Altman-Z | 5.49 |
ROIC/WACC1.16
WACC7.19%
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 1.12 indicates that RCH should not have too much problems paying its short term obligations.
RCH has a Quick ratio (1.12) which is in line with its industry peers.
| 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.
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.
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
The Earnings Per Share is expected to grow by 7.97% on average over the next years.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y1%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
EPS Next 5Y7.97%
Revenue Next Year7.95%
Revenue Next 2Y6.31%
Revenue Next 3Y4.89%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.02, the valuation of RCH can be described as rather expensive.
RCH's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of RCH to the average of the S&P500 Index (25.47), we can say RCH is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 20.21, the valuation of RCH can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of RCH is on the same level as its industry peers.
RCH is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.21 |
4.2 Price Multiples
RCH's Enterprise Value to EBITDA ratio is in line with the industry average.
RCH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.07 | ||
| EV/EBITDA | 10.64 |
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)24.02
PEG (5Y)4.54
EPS Next 2Y8.65%
EPS Next 3Y7.99%
5. Dividend
5.1 Amount
RCH has a Yearly Dividend Yield of 1.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.52, RCH has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.44, RCH is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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.
RCH's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP39.86%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
TSX:RCH (11/19/2025, 7:00:00 PM)
36.75
-0.32 (-0.86%)
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 Cap2.03B
Revenue(TTM)1.93B
Net Income(TTM)84.65M
Analysts47.5
Price Target36.72 (-0.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.63% |
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)0%
EPS NQ rev (3m)5.88%
EPS NY rev (1m)3.36%
EPS NY rev (3m)-13.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.81%
Revenue NY rev (3m)0.81%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 20.21 | ||
| P/S | 1.05 | ||
| P/FCF | 14.07 | ||
| P/OCF | 12.62 | ||
| P/B | 2.12 | ||
| P/tB | 2.75 | ||
| EV/EBITDA | 10.64 |
EPS(TTM)1.53
EY4.16%
EPS(NY)1.82
Fwd EY4.95%
FCF(TTM)2.61
FCFY7.11%
OCF(TTM)2.91
OCFY7.92%
SpS34.94
BVpS17.31
TBVpS13.37
PEG (NY)24.02
PEG (5Y)4.54
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 | 5.49 |
F-Score5
WACC7.19%
ROIC/WACC1.16
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%
EPS Next 2Y8.65%
EPS Next 3Y7.99%
EPS Next 5Y7.97%
Revenue 1Y (TTM)6.61%
Revenue growth 3Y8.35%
Revenue growth 5Y11.96%
Sales Q2Q%6.74%
Revenue Next Year7.95%
Revenue Next 2Y6.31%
Revenue Next 3Y4.89%
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 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% in the next year.