Richelieu Hardware (TSE:RCH)
TSX:RCH
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Richelieu Hardware
(TSX:RCH)
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Rating:70Outperform
Price Target:
C$47.00
▲(14.72% Upside)
Action:UpgradedDate:01/17/26
The score is driven primarily by solid financial footing (strong balance sheet and improving cash generation) and constructive price momentum. This is tempered by pressured profitability versus historical levels and a valuation that screens expensive for the current growth profile, while the latest earnings call was moderately supportive due to improving margin/cash-flow outlook despite retail and tariff risks.
Positive Factors
Balance sheet strength
Sustained low-to-moderate leverage and expanding equity provide durable financial flexibility. This balance-sheet strength supports the company's buy-and-build strategy, funds working capital needs, and reduces refinancing risk, enabling stable operations and M&A over the next several quarters.
Negative Factors
Margin compression
Persistently lower gross and net margins reduce earnings durability and limit reinvestment capacity. Structural margin compression makes profitability more sensitive to input cost swings, tariff moves, and acquisition mix, raising the bar for operational improvements to restore past returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Sustained low-to-moderate leverage and expanding equity provide durable financial flexibility. This balance-sheet strength supports the company's buy-and-build strategy, funds working capital needs, and reduces refinancing risk, enabling stable operations and M&A over the next several quarters.
Read all positive factors
Richelieu Hardware (RCH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.22B
Dividend Yield1.53%
Average Volume (3M)117.78K
Price to Earnings (P/E)21.0
Beta (1Y)0.67
Revenue Growth6.61%
EPS Growth-4.81%
CountryCA
Employees3,000
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)0.46
Shares Outstanding54,988,293
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 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 sell...
Richelieu Hardware Earnings Call Summary
Earnings Call Date:Jan 15, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 09, 2026
Earnings Call Sentiment Positive
The call highlighted solid top-line and EBITDA growth, strong U.S. performance, substantial cash flow generation and disciplined balance sheet management, supported by active M&A that added about $100 million of sales and expanded distribution. Key positives include a 7.3% Q4 sales increase, 9.1% EBITDA growth in the quarter, materially stronger operating cash flow (Q4 $68.7M; FY $202.4M), inventory reductions and a clear M&A pipeline. Headwinds include a notable Q4 pullback in retail channel sales (timing-related), modest full-year EPS growth, acquisition-related integration and margin risks, and tariff uncertainty that could hurt certain customers. On balance, the favorable operational and financial momentum and strong balance sheet outweigh the challenges.Positive Updates
Quarterly Revenue Growth
Fourth quarter sales increased 7.3% to $511.0 million compared with Q4 2024.
Negative Updates
Retail Channel Weakness in Q4
Sales to the hardware retailers and renovation superstores market were down 6.4% in the quarter. In Canada, retailer sales in Q4 declined 10.7% (Q4 retailers total $41 million, down 10.7%), primarily due to timing differences with one large customer not placing seasonal orders.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue Growth
Fourth quarter sales increased 7.3% to $511.0 million compared with Q4 2024.
Read all positive updates
Company Guidance
Management guided to a cautious but positive start to FY26, saying Q1 shows flat sales in the retailers/renovation superstores market while sales to manufacturers are running around +5% (the U.S. a couple percentage points stronger than Canada); they expect seasonally low Q1 margins but continued improvement thereafter and are targeting a full‑year 2026 EBITDA margin “slightly north of 11%” (Q4 EBITDA was $59.2M, up 9.1%, with an 11.6% EBITDA margin), reiterated an M&A cadence of roughly $100M of acquisitions per year (pipeline healthy), highlighted a $10–12M incremental U.S. sales pickup from regained Lowe’s business by mid‑year, noted inventory optimization delivered about $30–33M reduction in FY25 and that further (smaller) reductions are expected in 2026, signaled maintenance CapEx of roughly $15M (~0.08% of sales), and said these factors should drive stronger cash‑flow generation next year.Richelieu Hardware Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.96B | 1.83B | 1.79B | 1.80B | 1.44B |
| Gross Profit | 481.34M | 450.32M | 184.33M | 244.71M | 206.32M |
| EBITDA | 213.88M | 201.42M | 230.40M | 287.44M | 234.40M |
| Net Income | 85.82M | 85.75M | 111.47M | 168.39M | 141.76M |
Balance Sheet | |||||
| Total Assets | 1.44B | 1.39B | 1.31B | 1.28B | 964.18M |
| Cash, Cash Equivalents and Short-Term Investments | 45.52M | 41.39M | 46.33M | 21.22M | 58.71M |
| Total Debt | 276.91M | 264.60M | 209.29M | 264.13M | 99.49M |
| Total Liabilities | 479.24M | 465.13M | 406.81M | 464.04M | 295.24M |
| Stockholders Equity | 961.94M | 926.51M | 904.89M | 817.16M | 666.44M |
Cash Flow | |||||
| Free Cash Flow | 183.93M | 103.00M | 228.56M | -58.75M | 87.35M |
| Operating Cash Flow | 199.14M | 133.56M | 270.66M | -36.17M | 104.41M |
| Investing Cash Flow | -62.27M | -50.84M | -61.79M | -66.83M | -66.49M |
| Financing Cash Flow | -101.13M | -117.87M | -72.36M | -66.64M | -53.69M |
Richelieu Hardware Technical Analysis
Negative
40.97
Price Trends
42.33
Negative
40.81
Negative
38.17
Positive
Market Momentum
-0.47
Positive
38.77
Neutral
32.30
Neutral
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 40.97 is below the 20-day moving average (MA) of 41.47, below the 50-day MA of 42.33, and above the 200-day MA of 38.17, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.77 is Neutral, neither overbought nor oversold. The STOCH value of 32.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | C$2.63B | 14.22 | 10.69% | 7.11% | 3.19% | -0.26% | |
70 Outperform | C$2.22B | 20.98 | 9.02% | 1.53% | 6.61% | -4.81% | |
68 Neutral | C$486.02M | 16.26 | 7.69% | 8.22% | -2.45% | 44.20% | |
67 Neutral | C$1.79B | 12.20 | 13.08% | 3.11% | 1.99% | 31.36% | |
64 Neutral | C$486.02M | 16.26 | 7.69% | 8.32% | -2.45% | 44.20% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | C$1.78B | -9.31 | -11.45% | 2.40% | 3.71% | 80.35% |
* Consumer Cyclical Sector Average
TSE:RCH
Richelieu Hardware
40.34
6.74
20.07%
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Richelieu Hardware Corporate Events
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.