TSX:RCH

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with acceptable 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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

9.6%

RCH

5.4%

CA Trade Distributors

3.1%

CA Market


1 Year Return

24.2%

RCH

0.2%

CA Trade Distributors

-8.2%

CA Market

Return vs Industry: RCH exceeded the Canadian Trade Distributors industry which returned -2.8% over the past year.

Return vs Market: RCH exceeded the Canadian Market which returned -9.6% over the past year.


Shareholder returns

RCHIndustryMarket
7 Day9.6%5.4%3.1%
30 Day15.9%7.1%4.2%
90 Day41.5%23.5%14.5%
1 Year24.8%24.2%3.6%0.2%-5.0%-8.2%
3 Year2.4%0.03%8.4%-1.1%7.8%-2.6%
5 Year50.3%44.4%44.4%23.1%29.1%9.3%

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

Valuation

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

26.55x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RCH (CA$31.76) is trading above our estimate of fair value (CA$10.91)

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 (26.5x) compared to the CA Trade Distributors industry average (11.8x).

PE vs Market: RCH is poor value based on its PE Ratio (26.5x) compared to the Canadian market (13.4x).


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 (3.4x) compared to the CA Trade Distributors industry average (1x).


Next Steps

Future Growth

How is Richelieu Hardware forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

9.8%

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 (1.7%).

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 (9.8% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: RCH's revenue (9.8% 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


Next Steps

Past Performance

How has Richelieu Hardware performed over the past 5 years?

3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RCH has high quality earnings.

Growing Profit Margin: RCH's current net profit margins (6.6%) are higher than last year (6.4%).


Past Earnings Growth Analysis

Earnings Trend: RCH's earnings have grown by 3.6% per year over the past 5 years.

Accelerating Growth: RCH's earnings growth over the past year (2.8%) is below its 5-year average (3.6% per year).

Earnings vs Industry: RCH earnings growth over the past year (2.8%) underperformed the Trade Distributors industry 9.3%.


Return on Equity

High ROE: RCH's Return on Equity (12.8%) 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$492.9M) exceed its short term liabilities (CA$134.9M).

Long Term Liabilities: RCH's short term assets (CA$492.9M) exceed its long term liabilities (CA$60.7M).


Debt to Equity History and Analysis

Debt Level: RCH's debt to equity ratio (2.1%) is considered satisfactory.

Reducing Debt: RCH's debt to equity ratio has increased from 1.3% to 2.1% over the past 5 years.

Debt Coverage: RCH's debt is well covered by operating cash flow (944.9%).

Interest Coverage: RCH's interest payments on its debt are well covered by EBIT (174.4x coverage).


Balance Sheet


Next Steps

Dividend

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

0.84%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: RCH's dividend (0.84%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.86%).

High Dividend: RCH's dividend (0.84%) is low compared to the top 25% of dividend payers in the Canadian market (5.9%).


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.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), RCH's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

7.6yrs

Average management tenure


CEO

Richard Lord

32.5yrs

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 ($USD1.37M) is below average for companies of similar size in the Canadian market ($USD2.06M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Richard Lord
CEO, President & Executive Director32.5yrsCA$1.85m7.51% CA$134.2m
Antoine Auclair
VP & CFO8.67yrsCA$512.25k0.024% CA$435.3k
Denis Gagnon
Vice-President of Information Technologiesno dataCA$337.30kno data
Georges Forest
no datano datano data
Yannick Godeau
Manager of Legal Affairs & Corporate Secretary6.5yrsno datano data
Marjolaine Plante
Vice President of Human Resources2.25yrsno datano data

7.6yrs

Average Tenure

Experienced Management: RCH's management team is seasoned and experienced (7.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Lord
CEO, President & Executive Director32.5yrsCA$1.85m7.51% CA$134.2m
Mathieu Gauvin
Independent Director27.5yrsCA$102.66k0.29% CA$5.2m
Robert Courteau
Independent Director16.5yrsCA$100.82k0.0053% CA$95.3k
Marc Poulin
Independent Director7.5yrsCA$79.47k0.011% CA$190.6k
Pierre Pomerleau
Independent Director4.25yrsCA$90.53k0.013% CA$238.1k
Sylvie Vachon
Independent Chairman of the Board0.25yrCA$90.57k0.0018% CA$31.8k
Luc Martin
Independent Director0.25yrno datano data
Lucie Chabot
Independent Director0.25yrno datano data

5.9yrs

Average Tenure

60yo

Average Age

Experienced Board: RCH's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RCH insiders have only sold shares 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$1.788b
  • Shares outstanding: 56.29m
  • 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

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 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. The company serves kitchen and bathroom cabinet, storage and closet, home and office furniture manufacturers; residential and commercial woodworkers; and hardware retailers, such as renovation superstores. Richelieu Hardware Ltd. was founded in 1968 and is headquartered in Montreal, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/15 23:54
End of Day Share Price2020/07/15 00:00
Earnings2020/05/31
Annual Earnings2019/11/30


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.