Richelieu Hardware
Market Cap
CA$1.9b
Last Updated
2021/01/16 00:16 UTC
Data Sources
Company Financials +
Executive Summary
Richelieu Hardware Ltd. manufactures, imports, and distributes specialty hardware and complementary products in North America. More Details
Rewards
Risk Analysis
No risks detected for RCH from our risk checks.
Snowflake Analysis
Flawless balance sheet with proven track record.
Similar Companies
Share Price & News
How has Richelieu Hardware's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: RCH is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: RCH's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.9%
RCH
0.4%
CA Trade Distributors
-0.5%
CA Market
1 Year Return
19.6%
RCH
21.1%
CA Trade Distributors
1.7%
CA Market
Return vs Industry: RCH underperformed the Canadian Trade Distributors industry which returned 22.7% over the past year.
Return vs Market: RCH exceeded the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| RCH | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.9% | 0.4% | -0.5% |
| 30 Day | -4.1% | 0.4% | 3.4% |
| 90 Day | -9.2% | 12.2% | 12.3% |
| 1 Year | 20.3%19.6% | 25.1%21.1% | 5.3%1.7% |
| 3 Year | 7.4%4.7% | 20.9%9.8% | 13.0%2.3% |
| 5 Year | 62.8%56.2% | 127.0%95.3% | 66.2%40.7% |
Long-Term Price Volatility Vs. Market
How volatile is Richelieu Hardware's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Will Richelieu Hardware (TSE:RCH) Multiply In Value Going Forward?2 weeks ago | Simply Wall St
Is Richelieu Hardware (TSE:RCH) A Risky Investment?3 weeks ago | Simply Wall St
What Kind Of Investors Own Most Of Richelieu Hardware Ltd. (TSE:RCH)?Valuation
Is Richelieu Hardware undervalued compared to its fair value and its price relative to the market?
24.87x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: RCH (CA$34.55) is trading above our estimate of fair value (CA$32.63)
Significantly Below Fair Value: RCH is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: RCH is poor value based on its PE Ratio (24.9x) compared to the CA Trade Distributors industry average (16.3x).
PE vs Market: RCH is poor value based on its PE Ratio (24.9x) compared to the Canadian market (16.9x).
Price to Earnings Growth Ratio
PEG Ratio: RCH is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: RCH is overvalued based on its PB Ratio (3.5x) compared to the CA Trade Distributors industry average (1.5x).
Next Steps
Future Growth
How is Richelieu Hardware forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
5.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: RCH's forecast earnings growth (5.6% per year) is above the savings rate (1.5%).
Earnings vs Market: RCH's earnings (5.6% per year) are forecast to grow slower than the Canadian market (25.9% per year).
High Growth Earnings: RCH's earnings are forecast to grow, but not significantly.
Revenue vs Market: RCH's revenue (4.7% per year) is forecast to grow slower than the Canadian market (7.8% per year).
High Growth Revenue: RCH's revenue (4.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: RCH's Return on Equity is forecast to be low in 3 years time (14%).
Next Steps
Past Performance
How has Richelieu Hardware performed over the past 5 years?
3.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: RCH has high quality earnings.
Growing Profit Margin: RCH's current net profit margins (7.3%) are higher than last year (6.4%).
Past Earnings Growth Analysis
Earnings Trend: RCH's earnings have grown by 3.8% per year over the past 5 years.
Accelerating Growth: RCH's earnings growth over the past year (19%) exceeds its 5-year average (3.8% per year).
Earnings vs Industry: RCH earnings growth over the past year (19%) underperformed the Trade Distributors industry 27.2%.
Return on Equity
High ROE: RCH's Return on Equity (14.2%) is considered low.
Next Steps
Financial Health
How is Richelieu Hardware's financial position?
Financial Position Analysis
Short Term Liabilities: RCH's short term assets (CA$519.1M) exceed its short term liabilities (CA$142.9M).
Long Term Liabilities: RCH's short term assets (CA$519.1M) exceed its long term liabilities (CA$63.6M).
Debt to Equity History and Analysis
Debt Level: RCH's debt to equity ratio (1.1%) is considered satisfactory.
Reducing Debt: RCH's debt to equity ratio has reduced from 1.1% to 1.1% over the past 5 years.
Debt Coverage: RCH's debt is well covered by operating cash flow (2265.9%).
Interest Coverage: RCH's interest payments on its debt are well covered by EBIT (343.9x coverage).
Balance Sheet
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Dividend
What is Richelieu Hardware current dividend yield, its reliability and sustainability?
0.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: RCH's dividend (0.77%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: RCH's dividend (0.77%) is low compared to the top 25% of dividend payers in the Canadian market (5%).
Stability and Growth of Payments
Stable Dividend: RCH is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.
Growing Dividend: RCH is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: RCH is not paying a notable dividend for the Canadian market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RCH's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.1yrs
Average management tenure
CEO
Richard Lord
33yrs
Tenure
CA$1,847,700
Compensation
Mr. Richard Lord has been the Chief Executive Officer, President and an Executive Director of Richelieu Hardware Ltd. (also known as Quincaillerie Richelieu Ltée, Richelieu Inc., Richelieu Montréal Ltée...
CEO Compensation Analysis
Compensation vs Market: Richard's total compensation ($USD1.45M) is about average for companies of similar size in the Canadian market ($USD2.06M).
Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 33yrs | CA$1.85m | 7.56% CA$ 143.7m | |
| VP & CFO | 9.17yrs | CA$512.25k | 0.026% CA$ 485.8k | |
| Vice-President of Information Technologies | no data | CA$337.30k | no data | |
| no data | no data | no data | ||
| Manager of Legal Affairs & Corporate Secretary | 7yrs | no data | no data | |
| Vice President of Human Resources | 2.75yrs | no data | no data |
8.1yrs
Average Tenure
Experienced Management: RCH's management team is seasoned and experienced (8.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Executive Director | 33yrs | CA$1.85m | 7.56% CA$ 143.7m | |
| Independent Director | 28yrs | CA$102.66k | 0.29% CA$ 5.5m | |
| Independent Director | 17yrs | CA$100.82k | 0.0054% CA$ 102.1k | |
| Independent Director | 8yrs | CA$79.47k | 0.011% CA$ 203.9k | |
| Independent Director | 4.75yrs | CA$90.53k | 0.013% CA$ 255.1k | |
| Independent Chairman of the Board | 0.75yr | CA$90.57k | 0.0018% CA$ 34.0k | |
| Independent Director | 0.75yr | no data | no data | |
| Independent Director | 0.75yr | no data | no data |
6.4yrs
Average Tenure
60yo
Average Age
Experienced Board: RCH's board of directors are considered experienced (6.4 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Richelieu Hardware Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Richelieu Hardware Ltd.
- Ticker: RCH
- Exchange: TSX
- Founded: 1968
- Industry: Trading Companies and Distributors
- Sector: Capital Goods
- Market Cap: CA$1.901b
- Shares outstanding: 55.90m
- Website: https://www.richelieu.com
Number of Employees
Location
- Richelieu Hardware Ltd.
- 7900 Henri-Bourassa Boulevard West
- Montreal
- Quebec
- H4S 1V4
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| RCH | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jul 1993 |
| RHUH.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jul 1993 |
| 3R2 | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jul 1993 |
Biography
Richelieu Hardware Ltd. manufactures, imports, and distributes specialty hardware and complementary products in North America. The company’s principal product categories include furniture, glass and buildi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:16 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/08/31 |
| Annual Earnings | 2019/11/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.