Richelieu Hardware (RCH) AI Stock Analysis

• Market Cap: C$1.89B
• Dividend Yield: 1.78%
• Average Volume (3M): 81.41K
• Price to Earnings (P/E): 22.7
• Beta (1Y): 0.74
• Revenue Growth: 5.38%
• EPS Growth: -13.14%
• Country: CA
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.41
• Shares Outstanding: 55,219,990
• 10 Day Avg. Volume: 139,759
• 30 Day Avg. Volume: 81,411
• PEG Ratio: -1.16
• Price to Book (P/B): 2.47
• Price to Sales (P/S): 1.25
• P/FCF Ratio: 22.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$37.00
• Price Target Upside: 8.03% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 66 Neutral
• Price Target: C$39.00 ▲(13.87% Upside)

Richelieu Hardware's overall stock score reflects solid financial health and successful expansion strategies, particularly in the U.S. market. However, challenges in Canadian markets, pressure on margins, and reduced net earnings weigh on the score. The valuation is moderate, and technical indicators suggest a neutral trend. The cautious outlook from the earnings call further tempers the score.

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

How the Company Makes Money

Richelieu Hardware generates revenue primarily through the sale of specialty hardware products and related services. The company's revenue model is based on a wholesale distribution approach, where it purchases products from manufacturers and sells them to retailers, contractors, and industrial clients at a markup. Key revenue streams include direct sales from its extensive product catalog, custom orders, and value-added services such as product sourcing and technical support. Additionally, Richelieu's strategic partnerships with leading manufacturers enable it to maintain a diverse product offering, while its robust logistics network ensures timely delivery, enhancing customer satisfaction and loyalty. The company's focus on innovation and expanding its product line further contributes to its earnings by attracting new customers and retaining existing ones.

Richelieu Hardware Financial Statement Overview

Summary

Richelieu Hardware presents a stable financial profile with consistent revenue growth and a strong capital structure. The company maintains reasonable profitability margins and demonstrates effective cash flow generation. However, there are minor pressures on operational efficiency and free cash flow growth. Overall, Richelieu is well-positioned within its industry, balancing growth and financial stability.

Income Statement

Richelieu Hardware's TTM (Trailing-Twelve-Months) gross profit margin is 15.94%, with a net profit margin of 4.52%. The revenue growth rate from the previous annual report is 1.90%, indicating moderate growth. However, EBITDA margin decreased slightly to 10.89% from the previous period's 10.99%, reflecting some pressure on operational efficiency. Overall, the company shows stable revenue growth with reasonable profitability, albeit with slight margin contraction.

Balance Sheet

Richelieu's debt-to-equity ratio is 0.35, showcasing a solid capital structure with relatively low leverage. The return on equity (ROE) stands at 8.93% for the TTM, indicating decent profitability relative to shareholder equity. The equity ratio is 63.82%, suggesting a strong equity position. Overall, the balance sheet reflects a well-capitalized company with low financial risk and good return on equity.

Cash Flow

The TTM free cash flow is $108.61 million, with a modest growth rate of 5.45% compared to the previous period. The operating cash flow to net income ratio is 1.61, indicating strong cash generation relative to reported profits. However, the free cash flow to net income ratio is slightly lower at 1.29, suggesting some capital expenditure pressures. Overall, Richelieu demonstrates a healthy cash conversion cycle but faces minor challenges in maintaining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.90B	1.83B	1.79B	1.80B	1.44B	1.13B
Gross Profit	542.76M	450.32M	230.40M	507.25M	409.55M	302.29M
EBITDA	204.84M	201.42M	230.40M	287.44M	234.40M	154.46M
Net Income	83.46M	85.75M	111.47M	168.39M	141.76M	85.22M
Balance Sheet
Total Assets	1.47B	1.39B	1.31B	1.28B	964.18M	771.06M
Cash, Cash Equivalents and Short-Term Investments	38.50M	41.39M	46.33M	21.22M	58.71M	73.93M
Total Debt	327.57M	264.60M	209.29M	264.13M	99.49M	83.73M
Total Liabilities	524.14M	465.13M	406.81M	464.04M	295.24M	216.60M
Stockholders Equity	943.18M	926.51M	904.89M	817.16M	666.44M	551.09M
Cash Flow
Free Cash Flow	108.39M	103.00M	228.56M	-58.75M	87.35M	133.27M
Operating Cash Flow	128.31M	133.56M	270.66M	-36.17M	104.41M	145.71M
Investing Cash Flow	-50.03M	-50.84M	-61.79M	-66.83M	-66.49M	-45.52M
Financing Cash Flow	-104.95M	-117.87M	-72.36M	-66.64M	-53.69M	-50.84M

Richelieu Hardware Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCH, the sentiment is Negative. The current price of 34.25 is below the 20-day moving average (MA) of 35.47, below the 50-day MA of 35.59, and below the 200-day MA of 35.71, indicating a bearish trend. The MACD of -0.39 indicates Positive momentum. The RSI at 35.71 is Neutral, neither overbought nor oversold. The STOCH value of 11.05 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:RCH.

Richelieu Hardware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	75 Outperform	C$1.97B	12.25	13.68%	2.91%	0.57%	8.54%
PET	72 Outperform	C$2.45B	26.54	166.31%	1.31%	5.18%	17.66%
PBL	71 Outperform	C$606.32M	16.79	10.15%	0.89%	10.36%	-4.77%
TCL.A	68 Neutral	C$1.63B	9.33	6.35%	9.72%	-2.90%	57.43%
RCH	66 Neutral	C$1.89B	22.75	9.00%	1.78%	5.38%	-13.14%
NFI	45 Neutral	C$1.93B	-8.51	-29.35%	―	9.12%	-182.49%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Richelieu Hardware Corporate Events

Richelieu Hardware Reports Strong Q2 Sales and Strategic Acquisitions

Richelieu Hardware reported a 6.4% increase in sales for the second quarter of 2025, reaching $512.2 million, with significant contributions from both internal growth and acquisitions. The company completed two new acquisitions, adding to a total of six in the first half of the year, which are expected to enhance its North American distribution network and diversify its market segments. Despite challenging market conditions in Canada, Richelieu’s expansion efforts, including a significant expansion of its Detroit distribution center, underscore its commitment to strengthening its market position and supporting growth.

The most recent analyst rating on (TSE:RCH) stock is a Hold with a C$43.00 price target. To see the full list of analyst forecasts on Richelieu Hardware stock, see the TSE:RCH Stock Forecast page.