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Richelieu Hardware
(TSX:RCH)
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Rating:69Neutral
Price Target:
C$42.00
▲(18.34% Upside)
Action:Downgraded
Date:10/10/26
The score is driven primarily by solid financial stability (conservative leverage, positive free cash flow) and a constructive earnings-call outlook (strong recent growth and an ~11% margin target), partially offset by materially lower profitability versus prior peaks and a valuation that looks somewhat expensive (P/E ~24 with a modest ~1.6% yield). Technicals are supportive but mixed, with strength versus shorter-term averages but not yet fully above the 200-day trend and RSI near overbought.
Positive Factors
Broad-Based Revenue Growth
Revenue growth is broad across geographies and customer channels, reducing reliance on one market and supporting more durable demand. Continued expansion among manufacturers, retailers, and renovation customers strengthens Richelieu’s distribution platform and creates a foundation for sustained sales over the next several quarters.
Negative Factors
Profitability Remains Below Prior Peaks
Margin normalization has materially reduced earnings power compared with earlier peak years. The tariff reimbursement aided the latest quarter, while management said underlying margin pressure remained; without stronger volume growth, sustaining higher profitability may remain difficult over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-Based Revenue Growth
Revenue growth is broad across geographies and customer channels, reducing reliance on one market and supporting more durable demand. Continued expansion among manufacturers, retailers, and renovation customers strengthens Richelieu’s distribution platform and creates a foundation for sustained sales over the next several quarters.
Read all positive factors
Richelieu Hardware (RCH) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.08B
Dividend Yield1.65%
Average Volume (3M)80.59K
Price to Earnings (P/E)22.7
Beta (1Y)0.63
Revenue Growth7.22%
EPS Growth10.06%
CountryCA
Employees3,200
SectorIndustrials
Sector Strength72
IndustryManufacturing - Tools & Accessories
Share Statistics
EPS (TTM)1.67
Shares Outstanding54,848,440
10 Day Avg. Volume72,953
30 Day Avg. Volume80,593
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$39.50Price Target Upside11.30% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.66
Revenue Forecast (FY)C$2.08B
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 primarily makes money by selling specialty hardware and related products to business customers (B2B) and, in some cases, through channels serving renovation/construction activity. Its core revenue model is product distribution: it purcha...
Richelieu Hardware Earnings Call Summary
Earnings Call Date:Oct 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was clearly positive, supported by double-digit third-quarter sales growth, broad-based performance across Canada and the U.S., higher EBITDA and EPS, strategic acquisitions, strong renovation demand, and continued investment in capacity, technology, and customer coverage. The main cautions were the moderation to 3%-4% internal growth after the quarter, underlying EBITDA margin pressure excluding the tariff reimbursement, lower nine-month operating cash flow, uncertain economic and construction conditions, and the need for stronger volume growth to expand margins.Positive Updates
Strong Third-Quarter Sales Growth
Third-quarter sales reached CAD 562 million, up 12.6% or CAD 62.8 million, driven by 10% internal growth and a 2.6% contribution from acquisitions. At comparable exchange rates, sales growth would have been 11.3%.
Negative Updates
Underlying EBITDA Margin Was Below the Reported Level
Excluding the CAD 3 million tariff reimbursement, third-quarter EBITDA margin would have been 11.1%, below the 11.4% reported in the same quarter last year. Management explained that Richelieu passes tariffs through as a dollar amount without taking additional margin, which diluted the margin percentage.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Third-Quarter Sales Growth
Third-quarter sales reached CAD 562 million, up 12.6% or CAD 62.8 million, driven by 10% internal growth and a 2.6% contribution from acquisitions. At comparable exchange rates, sales growth would have been 11.3%.
Read all positive updates
Company Guidance
Management said that, since the ending of the quarter, internal growth was “around 3%-4%,” pricing was expected to be stable “in the near future,” and Q4 EBITDA margin was expected to be “around 11%,” with efforts to maintain “this 11% over the course of 2027”; they said a “more vigorous market” and “real volume” would help improve the EBITDA margin, tariff impacts should be behind them “starting Q4 and moving forward,” recurring sales to the major U.S. customer would start “in the course of the fourth quarter” at “approximately $10 million on a yearly basis,” or “approximately $2.5 million per quarter,” and the Penrod acquisition was completed at “around 7x EBITDA.”Richelieu Hardware Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
74
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Nov 2025 | Nov 2024 | Nov 2023 | Nov 2022 | Nov 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.07B | 1.96B | 1.83B | 1.79B | 1.80B | 1.44B |
| Gross Profit | 231.78M | 481.34M | 450.32M | 184.33M | 244.71M | 206.32M |
| EBITDA | 224.07M | 213.88M | 201.42M | 230.40M | 287.44M | 234.40M |
| Net Income | 92.45M | 85.82M | 85.75M | 111.47M | 168.39M | 141.76M |
Balance Sheet | ||||||
| Total Assets | 1.58B | 1.44B | 1.39B | 1.31B | 1.28B | 964.18M |
| Cash, Cash Equivalents and Short-Term Investments | 80.86M | 45.52M | 41.39M | 46.33M | 21.22M | 58.71M |
| Total Debt | 346.81M | 276.91M | 264.60M | 209.29M | 264.13M | 99.49M |
| Total Liabilities | 579.50M | 479.24M | 465.13M | 406.81M | 464.04M | 295.24M |
| Stockholders Equity | 997.86M | 961.94M | 926.51M | 904.89M | 817.16M | 666.44M |
Cash Flow | ||||||
| Free Cash Flow | 145.79M | 183.93M | 103.00M | 228.56M | -58.75M | 87.35M |
| Operating Cash Flow | 163.65M | 199.14M | 133.56M | 270.66M | -36.17M | 104.41M |
| Investing Cash Flow | -69.09M | -62.27M | -50.84M | -61.79M | -66.83M | -66.49M |
| Financing Cash Flow | -54.96M | -101.13M | -117.87M | -72.36M | -66.64M | -53.69M |
Richelieu Hardware Technical Analysis
Positive
35.49
Price Trends
36.13
Positive
36.72
Positive
38.62
Negative
Market Momentum
0.48
Positive
58.31
Neutral
45.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCH, the sentiment is Positive. The current price of 35.49 is below the 20-day moving average (MA) of 37.17, below the 50-day MA of 36.13, and below the 200-day MA of 38.62, indicating a neutral trend. The MACD of 0.48 indicates Positive momentum. The RSI at 58.31 is Neutral, neither overbought nor oversold. The STOCH value of 45.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | C$2.62B | 13.81 | 10.23% | 0.45% | 3.27% | 2.08% | |
69 Neutral | C$2.08B | 22.72 | 9.49% | 1.65% | 7.22% | 10.06% | |
67 Neutral | C$1.82B | 11.55 | 12.76% | 5.50% | -0.15% | -2.29% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$2.10B | -16.84 | -6.74% | 2.36% | -8.09% | -196.45% | |
61 Neutral | C$480.39M | 1.40 | 29.10% | 295.64% | -43.09% | 91.71% | |
60 Neutral | C$480.39M | 1.40 | 29.10% | 362.95% | -43.09% | 91.71% |
* Industrials Sector Average
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Richelieu Hardware Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Richelieu Hardware Posts Double-Digit Q3 Growth and Accelerates North American Expansion
Positive
Oct 7, 2026
Richelieu Hardware reported third-quarter sales of $562.0 million, up 12.6% year over year, driven by 10.0% internal growth and 2.6% from acquisitions, with gains in both Canada and the United States. EBITDA rose 14.8% to $65.5 million and net ear...
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.