Richelieu Hardware (RCH) AI Stock Analysis

• Market Cap: C$2.19B
• Dividend Yield: 1.54%
• Average Volume (3M): 117.78K
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.75
• Revenue Growth: 6.61%
• EPS Growth: -4.81%
• Country: CA
• Employees: 3,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): 0.43
• Shares Outstanding: 54,911,835
• 10 Day Avg. Volume: 154,390
• 30 Day Avg. Volume: 117,778
• 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: -7.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Neutral
• Price Target: C$43.00 ▲(7.69% Upside)

Richelieu Hardware's overall stock score is driven by solid financial performance and a positive earnings call, highlighting strong sales growth and strategic acquisitions. However, the valuation suggests the stock is relatively expensive, and technical indicators indicate potential overbought conditions, which may limit immediate upside potential.

Positive Factors

Revenue Growth

Consistent revenue growth driven by both internal expansion and acquisitions indicates strong market demand and effective business strategies.

Acquisition Strategy

Strategic acquisitions enhance product offerings and market reach, supporting long-term growth and competitive positioning.

Cash Flow Management

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and debt servicing.

Negative Factors

Profitability Margins

Declining profitability margins suggest rising costs or inefficiencies, potentially impacting long-term earnings growth and shareholder returns.

Regional Sales Decline

A decline in a key region like Ontario could signal market saturation or increased competition, affecting overall sales growth.

Decreased Net Earnings

A decrease in net earnings over an extended period may indicate underlying operational challenges or market pressures.

Richelieu Hardware Business Overview & Revenue Model

Company Description

Richelieu Hardware (RCH) is a leading distributor of specialty hardware and related products in North America, serving the woodworking, furniture manufacturing, and construction industries. The company offers a comprehensive range of products including cabinet hardware, sliding and folding door systems, decorative hardware, and various other components essential for furniture and interior design. With a strong presence in both the residential and commercial sectors, Richelieu operates multiple distribution centers and showrooms, catering to a diverse customer base that includes manufacturers, contractors, and retailers.

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 demonstrates solid financial health with consistent revenue growth and stable margins. The balance sheet reflects moderate leverage and a strong equity position, although profitability on equity has decreased. Cash flow generation is strong, but the recent decline in free cash flow warrants attention. Overall, the company is well-positioned but should focus on improving net profitability and free cash flow.

Income Statement

Richelieu Hardware shows a stable revenue growth trajectory with a TTM revenue growth rate of 1.65%. The gross profit margin has improved to 28.6% in TTM, indicating better cost management. However, the net profit margin has slightly decreased to 4.4%, suggesting increased expenses or cost pressures. EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.35, indicating moderate leverage. The return on equity is 8.9%, which is a decline from previous years, suggesting reduced profitability on equity. The equity ratio stands at 64.2%, showing a strong equity base relative to total assets.

Cash Flow

Operating cash flow to net income ratio is 1.54, indicating strong cash generation relative to net income. However, free cash flow has decreased by 20.6% in the TTM, which could impact future investments or debt repayments. The free cash flow to net income ratio remains robust at 0.84, showing good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.83B	1.79B	1.80B	1.44B	1.13B
Gross Profit	404.23M	450.32M	230.40M	507.25M	409.55M	302.29M
EBITDA	208.91M	201.42M	230.40M	287.44M	234.40M	154.46M
Net Income	84.65M	85.75M	111.47M	168.39M	141.76M	85.22M
Balance Sheet
Total Assets	1.44B	1.39B	1.31B	1.28B	964.18M	771.06M
Cash, Cash Equivalents and Short-Term Investments	45.57M	41.39M	46.33M	21.22M	58.71M	73.93M
Total Debt	272.37M	264.60M	209.29M	264.13M	99.49M	83.73M
Total Liabilities	482.63M	465.13M	406.81M	464.04M	295.24M	216.60M
Stockholders Equity	955.72M	926.51M	904.89M	817.16M	666.44M	551.09M
Cash Flow
Free Cash Flow	144.19M	103.00M	228.56M	-58.75M	87.35M	133.27M
Operating Cash Flow	160.82M	133.56M	270.66M	-36.17M	104.41M	145.71M
Investing Cash Flow	-46.87M	-50.84M	-61.79M	-66.83M	-66.49M	-45.52M
Financing Cash Flow	-111.93M	-117.87M	-72.36M	-66.64M	-53.69M	-50.84M

Richelieu Hardware Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 39.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCH, the sentiment is Positive. The current price of 39.93 is above the 20-day moving average (MA) of 39.21, above the 50-day MA of 38.16, and above the 200-day MA of 35.39, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 62.38 is Neutral, neither overbought nor oversold. The STOCH value of 72.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RCH.

Richelieu Hardware Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNF	81 Outperform	C$1.92B	11.11	15.07%	3.11%	1.99%	31.36%
TCL.A	74 Outperform	C$1.92B	11.20	8.95%	8.32%	-2.45%	44.20%
WPK	73 Outperform	C$2.66B	14.40	10.45%	7.11%	3.19%	-0.26%
RCH	70 Neutral	C$2.19B	26.14	9.00%	1.54%	6.61%	-4.81%
TCL.B	70 Neutral	C$1.92B	11.33	8.95%	8.22%	-2.45%	44.20%
TOY	68 Neutral	C$2.03B	25.87	6.75%	2.38%	3.71%	80.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Richelieu Hardware Corporate Events

Richelieu Hardware Expands Through Strategic Acquisitions and Reports Strong Q3 Growth

Richelieu Hardware reported strong growth in the third quarter of 2025, with sales reaching $499.2 million, marking a 6.7% increase driven by both internal growth and acquisitions. The company completed eight acquisitions since the start of 2025, adding over $75 million in annual sales, enhancing its product offerings and market presence in Canada and the United States. The acquisitions of Ideal Security and Finmac Lumber further broadened its market reach and product lines, supporting its strategy of disciplined growth and strong financial performance.