Want to see TSE:RCH full AI Analyst Report?
Top Page
Richelieu Hardware
(TSX:RCH)
Select Model
Select Model
Rating:60Neutral
Price Target:
C$37.00
â–²(4.25% Upside)
Action:Reiterated
Date:07/11/26
The score is held back primarily by weak technical conditions (downtrend vs key moving averages and bearish momentum). Financial fundamentals are steady with conservative leverage and positive cash generation, but margin compression and uneven free cash flow growth limit upside. Valuation is moderate-to-rich for the current profitability profile, while the latest earnings call supports the outlook via acquisitions and expected second-half improvement despite tariff and working-capital headwinds.
Positive Factors
Conservative balance sheet
Moderate leverage and a growing equity base provide financial resilience, preserve capacity for acquisitions and capital investment, and reduce dependence on external financing as the company manages cyclical demand.
Negative Factors
Sustained margin compression
Profitability remains materially below prior peak levels, limiting earnings resilience and reducing the benefit of revenue growth. Tariff-related gross-margin pressure may persist if costs cannot be fully passed through to customers.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Moderate leverage and a growing equity base provide financial resilience, preserve capacity for acquisitions and capital investment, and reduce dependence on external financing as the company manages cyclical demand.
Read all positive factors
Richelieu Hardware (RCH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.96B
Dividend Yield1.74%
Average Volume (3M)100.48K
Price to Earnings (P/E)22.8
Beta (1Y)0.67
Revenue Growth5.69%
EPS Growth5.15%
CountryCA
Employees3,200
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)1.57
Shares Outstanding54,845,062
10 Day Avg. Volume89,379
30 Day Avg. Volume100,477
Financial Highlights & Ratios
PEG Ratio38.42
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 Target
C$38.50Price Target Upside8.48% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.67
Revenue Forecast (FY)C$2.07B
Richelieu Hardware Business Overview & Revenue Model
Company Description
Richelieu Hardware Ltd., a company founded in 1968 and headquartered in Montreal, Canada, is a leading North American entity involved in the manufacturing, importing, and distribution of a wide variety of specialized hardware and complementary pro...
How the Company Makes Money
Richelieu makes money primarily by selling specialty hardware and related products to business customers (B2B). Its core revenue model is product distribution: the company sources items (through importing from third-party suppliers and purchasing ...
Richelieu Hardware Earnings Call Summary
Earnings Call Date:Jul 09, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 08, 2026
Earnings Call Sentiment Positive
The call presents a generally positive operational and strategic picture: organic growth in core markets, successful acquisition activity adding roughly CAD 45 million in run-rate sales, EPS and EBITDA up modestly, and continued product leadership and market penetration. Offsetting these positives are margin pressure from tariffs, a build in working capital that reduced H1 cash flow, soft performance in Ontario and the U.S. retail channel, and higher near-term cash outflows for financing and inventory. Overall the company appears to be growing and executing on M&A and product strategy while managing temporary margin and working capital headwinds.Positive Updates
Total Sales Growth
Q2 total sales of CAD 532.1 million, up 3.9% year-over-year (would have been +5.0% at comparable exchange rates). First half sales nearly CAD 1.0 billion, up 4.4% (5.9% on a comparable exchange rate).
Negative Updates
Margin Pressure from Tariffs
Gross margins declined ~200 basis points year-over-year, with EBITDA margin slightly down to 10.6% in Q2 from 10.8% last year (Q2 EBITDA increase only +1.7%). Management attributes most of the compression to tariffs that increased both sales and cost of sales.
Read all updates
Q2-2026 Updates
Positive
Negative
Total Sales Growth
Q2 total sales of CAD 532.1 million, up 3.9% year-over-year (would have been +5.0% at comparable exchange rates). First half sales nearly CAD 1.0 billion, up 4.4% (5.9% on a comparable exchange rate).
Read all positive updates
Company Guidance
Management's guidance emphasized continued acquisition-driven growth and margin recovery: management has closed four acquisitions YTD (one in Q1 U.S., one in Q2 Quebec, two post-quarter) adding roughly CAD45M of annual sales and is evaluating several more, while a U.S. box program that began in June should add about CAD10–12M of annual sales; they expect the second half to be stronger, will invest in additional U.S. salespeople, and remain positioned to pursue attractive targets. Key metrics called out include Q2 sales CAD532.1M (+3.9%; 1.8% organic / 2.1% acquisitions), H1 sales ~CAD1.0B (+4.4%; 1.9% organic / 2.5% acquisitions), Q2 EBITDA CAD56.1M (10.6% vs 10.8% LY), H1 EBITDA CAD99.4M (10.0%), a full‑year EBITDA target around 11% (longer‑term 12–13%), gross margin pressure from tariffs (≈200 bps gross margin decline vs ~20 bps EBITDA impact), Q2 net income CAD23.2M (EPS CAD0.42), H1 net income CAD37.6M (EPS CAD0.68), Q2 cash from operations before working capital CAD47.9M (operating inflow CAD19.4M), H1 operating inflow CAD36.6M, working capital CAD629.5M, DSO ~45–46 days, expected H2 inventory reduction CAD5–10M, YTD investments CAD26M (including CAD15.3M for acquisitions and CAD10.7M equipment) with full‑year CapEx guidance ~CAD18–20M, Q2 financing use CAD33.5M (including CAD7.6M share repurchase and CAD8.6M dividends).Richelieu Hardware Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
78
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.01B | 1.96B | 1.83B | 1.79B | 1.80B | 1.44B |
| Gross Profit | 223.02M | 481.34M | 450.32M | 184.33M | 244.71M | 206.32M |
| EBITDA | 215.62M | 213.88M | 201.42M | 230.40M | 287.44M | 234.40M |
| Net Income | 87.10M | 85.82M | 85.75M | 111.47M | 168.39M | 141.76M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.44B | 1.39B | 1.31B | 1.28B | 964.18M |
| Cash, Cash Equivalents and Short-Term Investments | 28.94M | 45.52M | 41.39M | 46.33M | 21.22M | 58.71M |
| Total Debt | 305.14M | 276.91M | 264.60M | 209.29M | 264.13M | 99.49M |
| Total Liabilities | 510.14M | 479.24M | 465.13M | 406.81M | 464.04M | 295.24M |
| Stockholders Equity | 974.24M | 961.94M | 926.51M | 904.89M | 817.16M | 666.44M |
Cash Flow | ||||||
| Free Cash Flow | 170.06M | 183.93M | 103.00M | 228.56M | -58.75M | 87.35M |
| Operating Cash Flow | 187.39M | 199.14M | 133.56M | 270.66M | -36.17M | 104.41M |
| Investing Cash Flow | -52.32M | -62.27M | -50.84M | -61.79M | -66.83M | -66.49M |
| Financing Cash Flow | -117.72M | -101.13M | -117.87M | -72.36M | -66.64M | -53.69M |
Richelieu Hardware Technical Analysis
Neutral
35.49
Price Trends
36.42
Negative
37.76
Negative
39.20
Negative
Market Momentum
-0.32
Negative
51.18
Neutral
53.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCH, the sentiment is Neutral. The current price of 35.49 is below the 20-day moving average (MA) of 35.53, below the 50-day MA of 36.42, and below the 200-day MA of 39.20, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 51.18 is Neutral, neither overbought nor oversold. The STOCH value of 53.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RCH.
Richelieu Hardware Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$2.61B | 14.03 | 10.41% | 0.45% | 0.26% | 1.01% | |
67 Neutral | C$1.71B | 10.79 | 12.76% | 5.88% | -0.15% | -2.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
63 Neutral | C$462.87M | 1.33 | 22.24% | 381.75% | -29.78% | 88.96% | |
60 Neutral | C$1.96B | 22.78 | 9.04% | 1.74% | 5.69% | 5.15% | |
60 Neutral | C$1.98B | -16.09 | -6.74% | 2.42% | -8.09% | -196.45% | |
58 Neutral | C$462.87M | 1.33 | 22.24% | 300.37% | -29.78% | 88.96% |
* Industrials Sector Average
TSE:RCH
Richelieu Hardware
35.76
-0.02
-0.07%
TSE:LNF
Leon's Furniture
24.81
-3.09
-11.07%
TSE:TCL.A
Transcontinental
5.37
2.51
87.43%
TSE:TCL.B
Transcontinental Inc. Class B
6.83
2.89
73.62%
TSE:TOY
Spin Master
19.80
-2.20
-10.01%
TSE:WPK
Winpak
44.44
2.83
6.81%
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.