Richelieu Hardware Ltd. (RCH) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Richelieu Hardware Ltd.

Omni-Lite Industries Canada, Inc.

Tree Island Steel Ltd.

Neo Performance Materials, Inc.

Algoma Steel Group, Inc.

South Star Battery Metals Corp.

Why is Richelieu Hardware Ltd. ?

High Management Efficiency with a high ROCE of 21.36%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 32.88

Healthy long term growth as Net Sales has grown by an annual rate of 11.05% and Operating profit at 1.10%

With ROE of 9.47%, it has a very attractive valuation with a 2.28 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.42%, its profits have risen by 2.7% ; the PEG ratio of the company is 7.5

Majority shareholders : Mutual Funds

Company is among the highest 1% of companies rated by MarketsMojo across all 4,000 stocks

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Richelieu Hardware Ltd. should be less than 10%
Overall Portfolio exposure to Industrial Manufacturing should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Industrial Manufacturing)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Richelieu Hardware Ltd. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Richelieu Hardware Ltd.

12.42%

-0.15

21.62%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.05%

EBIT Growth (5y)

1.10%

EBIT to Interest (avg)

32.88

Debt to EBITDA (avg)

0.33

Net Debt to Equity (avg)

0.11

Sales to Capital Employed (avg)

1.81

Tax Ratio

26.07%

Dividend Payout Ratio

39.46%

Pledged Shares

Institutional Holding

0.26%

ROCE (avg)

21.36%

ROE (avg)

15.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.28

EV to EBIT

16.29

EV to EBITDA

10.47

EV to Capital Employed

2.21

EV to Sales

1.13

PEG Ratio

7.45

Dividend Yield

ROCE (Latest)

13.57%

ROE (Latest)

9.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bullish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

1What is working for the Company

DIVIDEND PER SHARE(HY)

Highest at CAD 7.61

-6What is not working for the Company

DEBTORS TURNOVER RATIO(HY)

Lowest at 7.61 times

RAW MATERIAL COST(Y)

Grown by 8.21% (YoY

OPERATING PROFIT MARGIN(Q)

Lowest at 9.32 %

PRE-TAX PROFIT(Q)

At CAD 20.68 MM has Fallen at -33.12%

NET PROFIT(Q)

At CAD 14.41 MM has Fallen at -32.85%

Here's what is working for Richelieu Hardware Ltd.

Dividend per share

Highest at CAD 7.61

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Depreciation

Highest at CAD 19.48 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Richelieu Hardware Ltd.

Debtors Turnover Ratio

Lowest at 7.61 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Operating Profit Margin

Lowest at 9.32 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

At CAD 20.68 MM has Fallen at -33.12%

over average net sales of the previous four periods of CAD 30.92 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD 14.41 MM has Fallen at -32.85%

over average net sales of the previous four periods of CAD 21.46 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Raw Material Cost

Grown by 8.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales