Richelieu Hardware Ltd. (RCH.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+61.0%

CA$61.23

vs CA$38.03 price

Levered DCF

CA$89.73

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

5.07

Safe zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	24.95×	26.68×	21.5×	12.96×	16.67×	25.05×	22.74×	21.61×
P/B	2.23×	2.47×	2.65×	2.67×	3.55×	3.86×	3.02×	3.12×
P/S	1.09×	1.25×	1.34×	1.21×	1.64×	1.89×	1.45×	1.46×
EV / EBITDA	11.1×	12.47×	11.13×	8.43×	10.27×	13.85×	12.05×	13.81×
Gross margin	24.5%	24.6%	10.3%	13.6%	14.3%	26.8%	27.0%	27.1%
Operating margin	7.0%	7.2%	9.4%	12.8%	13.5%	10.7%	9.0%	9.2%
Net margin	4.4%	4.7%	6.2%	9.3%	9.8%	7.6%	6.5%	6.7%
Current ratio	3.29×	3.12×	3.62×	2.62×	3.25×	3.6×	4.65×	4.64×
Debt / equity	0.29×	0.29×	0.23×	0.32×	0.15×	0.15×	0.01×	0×
Interest coverage	9.62×	11.36×	12.63×	32.39×	71.92×	44.91×	30.73×	1,427.55×
Dividend yield	1.7%	1.6%	1.4%	1.3%	0.8%	0.5%	1.0%	1.0%
Payout ratio	41.7%	41.9%	30.1%	17.3%	13.7%	13.2%	21.4%	20.9%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	8.9%	9.3%	12.3%	20.6%	21.3%	15.5%	13.5%	14.4%
Return on invested capital	7.8%	8.2%	10.7%	15.4%	18.0%	13.5%	12.8%	13.8%
Return on assets	5.9%	6.2%	8.5%	13.1%	14.7%	11.1%	11.1%	11.9%
Free cash flow yield	8.6%	4.5%	9.5%	-2.7%	3.7%	6.3%	5.1%	2.0%
Earnings yield	4.0%	3.7%	4.6%	7.7%	6.0%	4.0%	4.5%	4.6%
Enterprise value	CA$2.4B	CA$2.5B	CA$2.6B	CA$2.4B	CA$2.4B	CA$2.1B	CA$1.5B	CA$1.5B
Net debt / EBITDA	1.08×	1.11×	0.71×	0.85×	0.17×	0.06×	-0.15×	-0.05×
Cash conversion cycle (days)	151	165	143	166	132	130	142	146