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.
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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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