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RCH

Richelieu Hardware TSX:RCH Stock Report

Last Price

CA$38.33

Market Cap

CA$2.1b

7D

8.1%

1Y

-6.6%

Updated

30 Sep, 2022

Data

Company Financials +
RCH fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance5/6
Financial Health4/6
Dividends2/6

RCH Stock Overview

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

Richelieu Hardware Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Richelieu Hardware
Historical stock prices
Current Share PriceCA$38.33
52 Week HighCA$51.52
52 Week LowCA$32.35
Beta1.13
1 Month Change9.17%
3 Month Change13.81%
1 Year Change-6.60%
3 Year Change48.57%
5 Year Change14.49%
Change since IPO5,475.27%

Recent News & Updates

Sep 29
Does Richelieu Hardware (TSE:RCH) Have A Healthy Balance Sheet?

Does Richelieu Hardware (TSE:RCH) Have A Healthy Balance Sheet?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Aug 17
Estimating The Intrinsic Value Of Richelieu Hardware Ltd. (TSE:RCH)

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

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Richelieu Hardware...

Jul 25
Is There Now An Opportunity In Richelieu Hardware Ltd. (TSE:RCH)?

Is There Now An Opportunity In Richelieu Hardware Ltd. (TSE:RCH)?

Richelieu Hardware Ltd. ( TSE:RCH ), might not be a large cap stock, but it saw a decent share price growth in the...

Shareholder Returns

RCHCA Trade DistributorsCA Market
7D8.1%1.3%-0.008%
1Y-6.6%-13.6%-6.6%

Return vs Industry: RCH exceeded the Canadian Trade Distributors industry which returned -14% over the past year.

Return vs Market: RCH matched the Canadian Market which returned -6.2% over the past year.

Price Volatility

Is RCH's price volatile compared to industry and market?
RCH volatility
RCH Average Weekly Movement4.3%
Trade Distributors Industry Average Movement4.8%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.1%
10% least volatile stocks in CA Market3.8%

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
19682,800Richard 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, railing and balusters, and floor protection products, as well as accessories for power tools. 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$2.14b
Earnings (TTM)CA$160.44m
Revenue (TTM)CA$1.64b

13.4x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RCH income statement (TTM)
RevenueCA$1.64b
Cost of RevenueCA$1.38b
Gross ProfitCA$266.87m
Other ExpensesCA$106.43m
EarningsCA$160.44m

Last Reported Earnings

May 31, 2022

Next Earnings Date

Oct 06, 2022

Earnings per share (EPS)2.87
Gross Margin16.23%
Net Profit Margin9.76%
Debt/Equity Ratio10.0%

How did RCH perform over the long term?

See historical performance and comparison

Dividends

1.4%

Current Dividend Yield

14%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RCH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RCH?

Other financial metrics that can be useful for relative valuation.

RCH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1.4x
Enterprise Value/EBITDA9.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does RCH's PE Ratio compare to its peers?

RCH PE Ratio vs Peers
The above table shows the PE ratio for RCH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.4x
RUS Russel Metals
3.6x-54.7%CA$1.6b
FTT Finning International
8.9x7.8%CA$3.7b
HDI Hardwoods Distribution
3x-12.4%CA$613.4m
DBM Doman Building Materials Group
6.2x-30.2%CA$505.4m
RCH Richelieu Hardware
13.4xn/aCA$2.1b

Price-To-Earnings vs Peers: RCH is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (5.4x).


Price to Earnings Ratio vs Industry

How does RCH's PE Ratio compare vs other companies in the North American Trade Distributors Industry?

Price-To-Earnings vs Industry: RCH is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the North American Trade Distributors industry average (9.7x)


Price to Earnings Ratio vs Fair Ratio

What is RCH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RCH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.4x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate RCH's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of RCH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RCH (CA$38.33) is trading below our estimate of fair value (CA$42.46)

Significantly Below Fair Value: RCH is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-1.7%

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 RCH's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RCH's revenue is expected to decline over the next 3 years (-1.7% per year).

High Growth Revenue: RCH's revenue is forecast to decline over the next 3 years (-1.7% 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


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Past Performance

How has Richelieu Hardware performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RCH has a high level of non-cash earnings.

Growing Profit Margin: RCH's current net profit margins (9.8%) are higher than last year (8.8%).


Past Earnings Growth Analysis

Earnings Trend: RCH's earnings have grown by 19.1% per year over the past 5 years.

Accelerating Growth: RCH's earnings growth over the past year (40.5%) exceeds its 5-year average (19.1% per year).

Earnings vs Industry: RCH earnings growth over the past year (40.5%) exceeded the Trade Distributors industry 25.9%.


Return on Equity

High ROE: RCH's Return on Equity (22.1%) is considered high.


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Financial Health

How is Richelieu Hardware's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RCH's short term assets (CA$744.1M) exceed its short term liabilities (CA$262.7M).

Long Term Liabilities: RCH's short term assets (CA$744.1M) exceed its long term liabilities (CA$108.2M).


Debt to Equity History and Analysis

Debt Level: RCH's net debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: RCH's debt to equity ratio has increased from 1.7% to 10% over the past 5 years.

Debt Coverage: RCH's debt is not well covered by operating cash flow (10.9%).

Interest Coverage: RCH's interest payments on its debt are well covered by EBIT (62.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.36%

Current Dividend Yield

Dividend Yield vs Market

Richelieu Hardware Dividend Yield vs Market
How does Richelieu Hardware dividend yield compare to the market?
SegmentDividend Yield
Company (Richelieu Hardware)1.4%
Market Bottom 25% (CA)2.0%
Market Top 25% (CA)6.1%
Industry Average (Trade Distributors)2.9%
Analyst forecast in 3 Years (Richelieu Hardware)1.5%

Notable Dividend: RCH's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: RCH's dividend (1.36%) is low compared to the top 25% of dividend payers in the Canadian market (6.1%).


Stability and Growth of Payments

Stable Dividend: RCH's dividend payments have been volatile in the past 10 years.

Growing Dividend: RCH's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (13.9%), RCH's dividend payments are thoroughly covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: RCH is paying a dividend but the company has no free cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

9.8yrs

Average management tenure


CEO

Richard Lord

34.67yrs

Tenure

CA$2,487,260

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

Richard Lord's Compensation vs Richelieu Hardware Earnings
How has Richard Lord's remuneration changed compared to Richelieu Hardware's earnings?
DateTotal Comp.SalaryCompany Earnings
May 31 2022n/an/a

CA$160m

Feb 28 2022n/an/a

CA$151m

Nov 30 2021CA$2mCA$724k

CA$142m

Aug 31 2021n/an/a

CA$124m

May 31 2021n/an/a

CA$114m

Feb 28 2021n/an/a

CA$94m

Nov 30 2020CA$2mCA$710k

CA$85m

Aug 31 2020n/an/a

CA$77m

May 31 2020n/an/a

CA$67m

Feb 29 2020n/an/a

CA$68m

Nov 30 2019CA$2mCA$696k

CA$66m

Aug 31 2019n/an/a

CA$66m

May 31 2019n/an/a

CA$66m

Feb 28 2019n/an/a

CA$65m

Nov 30 2018CA$2mCA$683k

CA$68m

Aug 31 2018n/an/a

CA$69m

May 31 2018n/an/a

CA$69m

Feb 28 2018n/an/a

CA$68m

Nov 30 2017CA$2mCA$669k

CA$68m

Aug 31 2017n/an/a

CA$67m

May 31 2017n/an/a

CA$66m

Feb 28 2017n/an/a

CA$64m

Nov 30 2016CA$2mCA$656k

CA$63m

Aug 31 2016n/an/a

CA$61m

May 31 2016n/an/a

CA$60m

Feb 29 2016n/an/a

CA$59m

Nov 30 2015CA$2mCA$640k

CA$59m

Compensation vs Market: Richard's total compensation ($USD1.81M) is about average for companies of similar size in the Canadian market ($USD2.36M).

Compensation vs Earnings: Richard's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: RCH's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: RCH's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: RCH insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

TSX:RCH Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
02 Sep 22BuyCA$51,000Luc MartinIndividual1,500CA$34.00
12 Jul 22BuyCA$73,102Lucie ChabotIndividual2,000CA$36.56
24 May 22BuyCA$99,745Richard LordIndividual2,850CA$35.00
16 May 22BuyCA$11,875Guy GrenierIndividual350CA$33.93
05 May 22BuyCA$69,968Marc PoulinIndividual2,000CA$35.00
27 Apr 22BuyCA$110,531Richard LordIndividual3,000CA$36.84
22 Apr 22BuyCA$20,025Antoine AuclairIndividual550CA$36.41
21 Apr 22BuyCA$74,802Marc PoulinIndividual2,000CA$37.41
11 Feb 22SellCA$149,676Guy GrenierIndividual3,000CA$49.89

Ownership Breakdown

What is the ownership structure of RCH?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders4,394,2037.9%
Institutions23,034,73041.2%
General Public28,467,98250.9%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 45.8% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.68%
Mawer Investment Management Ltd.
4,853,142CA$186.0m-29.56%0.36%
7.56%
Richard Lord
4,223,591CA$161.9m0.01%no data
7.06%
FMR LLC
3,948,454CA$151.3m0.65%0.01%
3.38%
Caisse de dépôt et placement du Québec
1,886,700CA$72.3m0%0.07%
3.15%
Neuberger Berman Investment Advisers LLC
1,758,086CA$67.4m-2.46%0.05%
2.91%
Fiera Capital Corporation
1,623,937CA$62.2m27.68%0.06%
1.68%
CI Global Asset Management
939,273CA$36.0m0.02%0.06%
1.6%
Dimensional Fund Advisors LP
894,380CA$34.3m1.09%0.01%
1.47%
Invesco Ltd.
823,101CA$31.5m188.8%0.01%
1.46%
RBC Global Asset Management Inc.
813,710CA$31.2m0%0.02%
0.78%
1832 Asset Management L.P.
436,154CA$16.7m1.95%0.02%
0.67%
Grandeur Peak Global Advisors, LLC
376,170CA$14.4m7.24%0.23%
0.64%
BlackRock, Inc.
358,214CA$13.7m0.31%no data
0.64%
Royce & Associates, LP
355,741CA$13.6m0%0.09%
0.54%
Pembroke Management Ltd.
299,691CA$11.5m33.65%0.72%
0.5%
IG Investment Management, Ltd.
278,364CA$10.7m0%0.02%
0.47%
Manulife Asset Management
263,444CA$10.1m-19.22%0.01%
0.46%
HSBC Global Asset Management (UK) Limited
256,526CA$9.8m0%0.01%
0.39%
ATB Investment Management Inc.
216,316CA$8.3m-20.1%0.12%
0.34%
CIBC Asset Management Inc.
188,638CA$7.2m8.27%0.01%
0.33%
BMO Asset Management Corp.
184,717CA$7.1m-0.4%no data
0.31%
Industrial Alliance Investment Management Inc.
172,373CA$6.6m0%0.06%
0.28%
Brighthouse Investment Advisers, LLC
157,011CA$6.0m-0.94%0.06%
0.27%
QV Investors Inc.
153,287CA$5.9m0%0.17%
0.25%
TD Asset Management, Inc.
137,220CA$5.3m-4.15%no data

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$2.143b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCHTSX (The Toronto Stock Exchange)YesCommon SharesCACADJul 1993
RHUH.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 1993
3R2DB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1993

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/05/31
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.