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Richelieu Hardware (TSE:RCH) Reports Mixed Q4-2022 Results, Hikes Dividend

Story Highlights

Richelieu Hardware reported its Q4-2022 results earlier today, along with its full-year results. The numbers came in mixed, beating EPS expectations but missing the mark on revenue. Also, earnings growth was unable to keep up with revenue growth, meaning profit margins fell. Nonetheless, the company increased its dividend, which pleased investors.

During market hours today, Richelieu Hardware (TSE: RCH) (OTC: RHUHF) reported its Q4-2022 and full-year financial results, which beat earnings-per-share (EPS) expectations but missed revenue forecasts. The company also hiked its dividend by 15.4%, which now sits at a quarterly rate of C$0.15 per share. Richelieu is a Canadian company that imports, manufactures, and distributes specialty hardware and complementary products. RCH stock was down about 2.4% at one point today after the report came out, but it ended up finishing 0.76% higher.

The company’s Q4-2022 sales increased by 14.9% year-over-year, reaching C$457.5 million (expectations were C$471.4 million). 6.7% of its sales growth was organic, and the other growth came from acquisitions.

Meanwhile, diluted EPS came in at C$0.80, beating the C$0.74 consensus estimate and increasing just slightly compared to last year’s EPS of C$0.79. In addition, EBITDA reached C$76.7 million, representing a growth rate of 7.5% and an EBITDA margin of 16.8% (110 basis points lower year-over-year). Next, adjusted cash flow from operations, which doesn’t include net changes in non-cash working capital balances, increased by 8.3%, reaching C$1.07 per share or C$60.4 million. 

For the full year, sales grew 25.2% to C$1.8 billion, and diluted EPS grew 19.1% to C$2.99. Notably, the company’s return on average equity was 22.7% for the year.

Is Richelieu Hardware Stock a Buy, According to Analysts?

Based on just one analyst rating assigned in the past three months, Richelieu Hardware stock earns a Moderate Buy rating. RCH stock’s price target of C$46 implies 23.49% upside potential.

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