# Richelieu Hardware Ltd. (RCH.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Household Durables. Price C$35.76, market value C$2.0 billion.

## Valuation
- **P/E (trailing): 22.8×** (5-yr avg 20.0×, 3-yr avg 24.0×). Richelieu Hardware Ltd. trades at 22.8× trailing earnings, close to its own five-year average of 20.0×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 18.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 14.04**. A PEG of 14.04 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.0×**. The shares trade at 2.0× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 10.3×**. Enterprise value is 10.3× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 8.6%** (5-yr avg 4.8%). Free cash flow equals 8.6% of the market value, above its five-year average of 4.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.4%**. The inverse of the P/E: 4.4% of the price is earned each year.

## Profitability
- **Gross margin: 11.1%**. Richelieu Hardware Ltd. keeps 11.1% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 6.9%**. 6.9% of revenue is left after running the business.
- **Net margin: 4.4%**. 4.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.9%**. 8.9% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 8.5%**. Return on all capital, debt included, is 8.5%.
- **Return on assets: 6.0%**. Each dollar of assets produces 6.0% of profit.

## Growth
- **Revenue growth (1 yr): 7.2%** (3-yr 2.9%/yr, 5-yr 11.7%/yr). Revenue grew 7.2% over the last year, against 11.7% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 1.3%** (3-yr -19.7%/yr, 5-yr 0.7%/yr). Earnings per share rose 1.3%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.29**. Debt is 0.29 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 1.1×**. It would take 1.1 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.4×**. Operating profit covers interest 10.4× over, a safe margin.
- **Current ratio: 3.29** (quick 1.18). Current assets cover the next year's liabilities 3.29 times.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.75%** (C$0.62 per share, trailing). Richelieu Hardware Ltd. yields 1.75%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 42%** (21% of free cash flow). 42% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 24.9%/yr** (1-yr 2.0%). The dividend has compounded at 24.9% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 2.9%**. Dividends plus net buybacks return 2.9% of the market value a year.

## Price and momentum
- **Total return (1 yr): -0.1%** (YTD -8.5%, 3-mo -8.4%). The shares are down 0.1% over twelve months including dividends.
- **From 52-week high: -20.6%** (9.9% above the low). Trading 21% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 51**. An RSI of 51 is neutral.
- **Beta (1 yr): 0.42** (volatility 23%). Beta of 0.42 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=RCH.TO · Page: https://foliofundamentals.com/stocks/rch.to

Not investment advice.