Richelieu Hardware (TSE:RCH)
TSX:RCH
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Richelieu Hardware
(TSX:RCH)
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Rating:66Neutral
Price Target:
C$42.00
â–²(2.51% Upside)
Action:ReiteratedDate:04/11/26
The score is primarily supported by strong cash generation and a conservatively levered balance sheet, reinforced by guidance pointing to margin recovery and continued M&A-driven growth. Offsetting these positives are weak technical momentum and a premium valuation (high P/E with only a modest dividend yield), which increase sensitivity to any shortfall in margin improvement.
Positive Factors
Strong cash generation
Very strong trailing‑twelve‑month operating and free cash flow provides durable funding for dividends, capital expenditure, and M&A without relying on new debt. Steady cash conversion underpins financial flexibility and resilience through cyclical demand swings.
Negative Factors
Margin volatility and compression
Margins have contracted from prior peaks and remain sensitive to FX, tariffs, and mix. Persistent margin volatility undermines earnings predictability and makes long‑term return targets harder to sustain, increasing execution risk for margin recovery plans.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Very strong trailing‑twelve‑month operating and free cash flow provides durable funding for dividends, capital expenditure, and M&A without relying on new debt. Steady cash conversion underpins financial flexibility and resilience through cyclical demand swings.
Read all positive factors
Richelieu Hardware (RCH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.18B
Dividend Yield1.53%
Average Volume (3M)117.78K
Price to Earnings (P/E)41.5
Beta (1Y)0.65
Revenue Growth6.37%
EPS Growth3.31%
CountryCA
Employees3,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)1.56
Shares Outstanding55,013,294
10 Day Avg. Volume154,390
30 Day Avg. Volume117,778
Financial Highlights & Ratios
PEG Ratio38.43
Price to Book (P/B)2.23
Price to Sales (P/S)1.09
P/FCF Ratio11.64
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.81
Revenue Forecast (FY)C$2.08B
Richelieu Hardware Business Overview & Revenue Model
Company Description
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, lig...
How the Company Makes Money
Richelieu primarily makes money by selling specialty hardware and related building/interior-products to business customers (B2B) across North America. Its core revenue stream is product sales sourced from third-party manufacturers and sold through...
Richelieu Hardware Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 09, 2026
Earnings Call Sentiment Positive
Overall the call was constructive: Richelieu delivered mid-single-digit sales growth, improved EBITDA on an FX-adjusted basis, EPS growth, strong U.S. momentum, a healthy balance sheet and active M&A pipeline, and received industry awards for innovation. Offsetting items included slight margin compression driven by FX and tariff pass-throughs, weakness in the Canadian retailer segment (notably Ontario), and seasonal inventory-driven working capital use. Management reiterated confidence in margin improvement over the remainder of the year and in reaching M&A revenue targets.Positive Updates
Overall Revenue Growth
Quarterly sales rose 5% to $463.6 million. Excluding the Canadian dollar appreciation versus the U.S. dollar, sales growth would have been 7%. Growth composition: 2% internal and 3% from acquisitions.
Negative Updates
Retailers and Renovation Superstores Weakness
Sales in the hardware retailers and renovation superstores market declined 1.9% to $55.4 million. Regionally, this segment fell 6% in Canada while U.S. retail sales rose 21% in U.S. dollars, indicating uneven performance.
Read all updates
Q1-2026 Updates
Positive
Negative
Overall Revenue Growth
Quarterly sales rose 5% to $463.6 million. Excluding the Canadian dollar appreciation versus the U.S. dollar, sales growth would have been 7%. Growth composition: 2% internal and 3% from acquisitions.
Read all positive updates
Company Guidance
Management's guidance emphasized margin recovery and active M&A: they expect Q2–Q4 EBITDA to rise from Q1 and full‑year 2026 EBITDA to be around 11% (slightly above last year's 10.9%), with a longer‑term target of 12–13%; Q1 EBITDA margin was 9.3% (vs. 9.6% a year ago) on EBITDA of $43.2M (up $0.8M), with a Q1 foreign‑exchange headwind of $1.6M (about 30–40 bps) and a tariff pass‑through impact of ~0.2 percentage points (20 bps) that depressed margin (management said excluding FX and tariffs margins would be higher than last year). On M&A, the pipeline is healthy (two LOIs in Canada, December acquisition added two U.S. DCs), they reiterated a goal of roughly ±$100M in incremental revenue from acquisitions and noted an expected ~$10M/year revenue gain beginning in Q3–Q4, supported by a strong balance sheet with working capital of $625.7M and almost no debt.Richelieu Hardware Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.99B | 1.96B | 1.83B | 1.79B | 1.80B | 1.44B |
| Gross Profit | 246.81M | 481.34M | 450.32M | 184.33M | 244.71M | 206.32M |
| EBITDA | 214.70M | 213.88M | 201.42M | 230.40M | 287.44M | 234.40M |
| Net Income | 86.37M | 85.82M | 85.75M | 111.47M | 168.39M | 141.76M |
Balance Sheet | ||||||
| Total Assets | 1.45B | 1.44B | 1.39B | 1.31B | 1.28B | 964.18M |
| Cash, Cash Equivalents and Short-Term Investments | 30.29M | 45.52M | 41.39M | 46.33M | 21.22M | 58.71M |
| Total Debt | 279.39M | 276.91M | 264.60M | 209.29M | 264.13M | 99.49M |
| Total Liabilities | 487.82M | 479.24M | 465.13M | 406.81M | 464.04M | 295.24M |
| Stockholders Equity | 961.36M | 961.94M | 926.51M | 904.89M | 817.16M | 666.44M |
Cash Flow | ||||||
| Free Cash Flow | 201.75M | 183.93M | 103.00M | 228.56M | -58.75M | 87.35M |
| Operating Cash Flow | 215.29M | 199.14M | 133.56M | 270.66M | -36.17M | 104.41M |
| Investing Cash Flow | -50.55M | -62.27M | -50.84M | -61.79M | -66.83M | -66.49M |
| Financing Cash Flow | -107.56M | -101.13M | -117.87M | -72.36M | -66.64M | -53.69M |
Richelieu Hardware Technical Analysis
Neutral
40.97
Price Trends
41.93
Negative
41.05
Negative
38.41
Positive
Market Momentum
-0.72
Positive
48.68
Neutral
45.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCH, the sentiment is Neutral. The current price of 40.97 is above the 20-day moving average (MA) of 40.38, below the 50-day MA of 41.93, and above the 200-day MA of 38.41, indicating a neutral trend. The MACD of -0.72 indicates Positive momentum. The RSI at 48.68 is Neutral, neither overbought nor oversold. The STOCH value of 45.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RCH.
Richelieu Hardware Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$462.29M | 16.26 | 7.69% | 8.22% | -14.81% | -9.37% | |
67 Neutral | C$1.83B | 12.20 | 13.08% | 3.11% | 3.01% | 1.66% | |
67 Neutral | C$462.29M | 16.26 | 7.69% | 8.32% | -14.81% | -9.37% | |
67 Neutral | C$2.36B | 15.42 | 10.32% | 7.11% | -2.26% | -7.15% | |
66 Neutral | C$2.18B | 41.51 | 9.04% | 1.53% | 6.37% | 3.31% | |
65 Neutral | C$2.05B | -10.19 | -11.45% | 2.40% | -9.88% | -246.72% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
TSE:RCH
Richelieu Hardware
38.53
6.11
18.84%
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25.82
3.68
16.62%
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6.57
2.86
77.38%
TSE:TOY
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TSE:WPK
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Richelieu Hardware Corporate Events
Executive/Board ChangesShareholder Meetings
Richelieu Shareholders Re-elect Full Board Slate, Underscoring Governance Continuity
Positive
Apr 10, 2026
Richelieu Hardware Ltd., a major North American supplier of specialty hardware and complementary products to cabinetmakers, furniture manufacturers, woodworkers and hardware retailers, operates 51 distribution centers in Canada, 66 in the United S...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Richelieu Hardware Extends Growth and U.S. Footprint in First Quarter 2026
Positive
Apr 9, 2026
Richelieu Hardware posted first-quarter 2026 sales of $463.6 million, up 5.0%, driven by 2.0% internal growth and 3.0% from acquisitions, with Canadian revenue rising 3.4% and U.S. sales climbing 11.3% in local currency. EBITDA increased 1.9% to $...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Richelieu Hardware Marks 100th Acquisition on Back of Strong 2025 Results
Positive
Jan 15, 2026
Richelieu Hardware reported solid results for its fourth quarter and 2025 fiscal year, with quarterly sales up 7.3% to $510.9 million and full-year sales rising 7.2% to $1.96 billion, supported by both internal growth and acquisitions. Profitabili...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.