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RCH

Richelieu HardwareTSX:RCH Stock Report

Last Price

CA$48.08

Market Cap

CA$2.7b

7D

8.5%

1Y

21.2%

Updated

26 Jan, 2022

Data

Company Financials +
RCH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends0/6

RCH Stock Overview

Richelieu Hardware Ltd. manufactures, imports, and distributes specialty hardware and complementary products in North America.

Richelieu Hardware Competitors

Masco

NYSE:MAS

US$15.5b

Price History & Performance

Summary of all time highs, changes and price drops for Richelieu Hardware
Historical stock prices
Current Share PriceCA$48.08
52 Week HighCA$50.20
52 Week LowCA$35.60
Beta1.02
1 Month Change11.30%
3 Month Change11.81%
1 Year Change21.23%
3 Year Change106.71%
5 Year Change76.44%
Change since IPO6,893.46%

Recent News & Updates

Jan 11
Calculating The Intrinsic Value Of Richelieu Hardware Ltd. (TSE:RCH)

Calculating The Intrinsic Value Of Richelieu Hardware Ltd. (TSE:RCH)

How far off is Richelieu Hardware Ltd. ( TSE:RCH ) from its intrinsic value? Using the most recent financial data...

Dec 15
What Is Richelieu Hardware Ltd.'s (TSE:RCH) Share Price Doing?

What Is Richelieu Hardware Ltd.'s (TSE:RCH) Share Price Doing?

Richelieu Hardware Ltd. ( TSE:RCH ), might not be a large cap stock, but it saw significant share price movement during...

Shareholder Returns

RCHCA Trade DistributorsCA Market
7D8.5%-1.0%-2.9%
1Y21.2%20.1%16.1%

Return vs Industry: RCH matched the Canadian Trade Distributors industry which returned 21.8% over the past year.

Return vs Market: RCH exceeded the Canadian Market which returned 15% over the past year.

Price Volatility

Is RCH's price volatile compared to industry and market?
RCH volatility
RCH Average Weekly Movement4.2%
Trade Distributors Industry Average Movement4.4%
Market Average Movement9.8%
10% most volatile stocks in CA Market17.3%
10% least volatile stocks in CA Market3.7%

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.

About the Company

FoundedEmployeesCEOWebsite
19682,400Richard Lordhttps://www.richelieu.com

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 building decorative and functional hardware, lighting systems, finishing and decorating products, ergonomic workstation components, kitchen and closet storage solutions, sliding door systems, decorative and functional panels, high-pressure laminates, and floor protection products. It also manufactures veneer sheets and edge banding products; and various decorative moldings and components for the window and door industry.

Richelieu Hardware Fundamentals Summary

How do Richelieu Hardware's earnings and revenue compare to its market cap?
RCH fundamental statistics
Market CapCA$2.68b
Earnings (TTM)CA$141.76m
Revenue (TTM)CA$1.44b

18.9x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCH income statement (TTM)
RevenueCA$1.44b
Cost of RevenueCA$1.21b
Gross ProfitCA$234.40m
ExpensesCA$92.63m
EarningsCA$141.76m

Last Reported Earnings

Nov 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.54
Gross Margin16.27%
Net Profit Margin9.84%
Debt/Equity Ratio1.0%

How did RCH perform over the long term?

See historical performance and comparison

Dividends

0.6%

Current Dividend Yield

11%

Payout Ratio

Valuation

Is Richelieu Hardware undervalued compared to its fair value and its price relative to the market?

45.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RCH (CA$48.08) is trading below our estimate of fair value (CA$88.25)

Significantly Below Fair Value: RCH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: RCH is poor value based on its PE Ratio (18.9x) compared to the Canadian Trade Distributors industry average (8.5x).

PE vs Market: RCH is poor value based on its PE Ratio (18.9x) compared to the Canadian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RCH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RCH is overvalued based on its PB Ratio (4x) compared to the CA Trade Distributors industry average (1.2x).


Future Growth

How is Richelieu Hardware forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

7.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RCH's forecast earnings growth is above the savings rate (1.6%).

Earnings vs Market: Insufficient data to determine if RCH's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RCH's revenue (7.9% per year) is forecast to grow faster than the Canadian market (5.6% per year).

High Growth Revenue: RCH's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RCH's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Richelieu Hardware performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCH has high quality earnings.

Growing Profit Margin: RCH's current net profit margins (9.8%) are higher than last year (7.6%).


Past Earnings Growth Analysis

Earnings Trend: RCH's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: RCH's earnings growth over the past year (66.3%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: RCH earnings growth over the past year (66.3%) underperformed the Trade Distributors industry 69.7%.


Return on Equity

High ROE: RCH's Return on Equity (21.3%) is considered high.


Financial Health

How is Richelieu Hardware's financial position?


Financial Position Analysis

Short Term Liabilities: RCH's short term assets (CA$659.2M) exceed its short term liabilities (CA$202.8M).

Long Term Liabilities: RCH's short term assets (CA$659.2M) exceed its long term liabilities (CA$92.4M).


Debt to Equity History and Analysis

Debt Level: RCH has more cash than its total debt.

Reducing Debt: RCH's debt to equity ratio has reduced from 1.2% to 1% over the past 5 years.

Debt Coverage: RCH's debt is well covered by operating cash flow (1621.5%).

Interest Coverage: RCH's interest payments on its debt are well covered by EBIT (73.1x coverage).


Balance Sheet


Dividend

What is Richelieu Hardware current dividend yield, its reliability and sustainability?

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RCH's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.63%).

High Dividend: RCH's dividend (0.58%) is low compared to the top 25% of dividend payers in the Canadian market (4.88%).


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?

9.1yrs

Average management tenure


CEO

Richard Lord

34yrs

Tenure

CA$2,430,940

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 ($USD1.92M) is about average for companies of similar size in the Canadian market ($USD1.91M).

Compensation vs Earnings: Richard's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: RCH's management team is seasoned and experienced (9.1 years average tenure).


Board Members

Experienced Board: RCH's board of directors are considered experienced (6.3 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 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
  • Implied Market Cap: CA$2.685b
  • Shares outstanding: 55.84m
  • Website: https://www.richelieu.com

Number of Employees


Location

  • Richelieu Hardware Ltd.
  • 7900 Henri-Bourassa Boulevard West
  • Montreal
  • Quebec
  • H4S 1V4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/26 01:00
End of Day Share Price2022/01/25 00:00
Earnings2021/11/30
Annual Earnings2021/11/30


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.