TSE:RCH

40.35
0.10 (0.25%) 1d
0

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Investor Insights

This summary was created by AI, based on 3 opinions in the last 12 months.

Richelieu Hardware (RCH-T) has seen strong performance tied to home renovations as a result of pent-up demand post-Covid. The company experienced a 30% increase last year, but recently reported lower margins due to excess inventory, leading to some profit-taking. However, the company maintains a strong balance sheet and track record, and experts believe there is still room for growth due to the ongoing home renovation cycle.

Consensus
Positive
Valuation
Fair Value
Similar
Lowe's Companies, LOW
PAST TOP PICK
Richelieu Hardware
(A Top Pick Jan 31/23, Up 10%)

Are tied to home renos and there was huge pent-up demand coming out Covid. So, RCH stocked up on inventory and gained market share. Was up 30% last year, but last week they reported lower margins that will persist given excess inventory (that will last a few quarters). So, he took some profits around $45, but will buy them back. A strong balance sheet and track record.

0
HOLD
Richelieu Hardware
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

RCH missed 4Q earnings estimates (50c vs 53c expected) and this resulted in National Bank downgrading the stock. Sales of $453M were 2% higher than expected. Margins were reduced by expansion, but this also is setting up future growth. Disappointing results, but not a disaster. 10% growth is still expected in 2024. 
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0
PAST TOP PICK
Richelieu Hardware
(A Top Pick Nov 30/22, Up 9%)

A strong home renovation cycle will push shares higher. Good profit margins, balance sheet and returns. Managers own a lot of shares. More room to run.

0
BUY
Richelieu Hardware

It is high quality company and they have added it to the portfolio in the past 6 months. It has been weak because of the sector. They sell storage systems etc. and are very well managed. There is a big backlog in the home renovation sector. It is also buying back stock.

0
PAST TOP PICK
Richelieu Hardware
(A Top Pick Nov 30/22, Up 2%)

Thesis remains intact. High quality. Benefited during Covid renovations. Now stock's over-corrected. Usually trades at a premium. Now at an attractive multiple. Significant pullback gives a good margin of safety in the face of economic slowdown.

0
TOP PICK
Richelieu Hardware

Has compounded 8x over 15 years. They make specialty hardware, growing organically and buying other distributors then adding product lines (i.e. kitchen cabinets). Just reported record profits. Stocks fell 25% last year when he bought it. Has fallen out of favour, because it is tied to housing, though sales are tied to home renovations through contractors (not hardware stores). Huge backlog for contractors and manufacturers for home renos. Very well-managed and strong balance sheet. Trades at 16x PE only. Have been buying back a lot of shares.

(Analysts’ price target is $50.00)
0
TOP PICK
Richelieu Hardware
Did well during pandemic, benefiting from the stuck-at-home renovation cycle. Earnings have declined since, as has share price. A buying opportunity. You'll have to be patient, as he doesn't see an immediate catalyst. CEO owns a lot of shares. Yield is 1.35%. (Analysts’ price target is $49.00)
0
BUY ON WEAKNESS
Richelieu Hardware
It's been decimated lately. He models $54.14, so there's a lot of upside. It's at the top of its valuation now. At $33.50, it's a buy. Wait.
0
PAST TOP PICK
Richelieu Hardware
(A Top Pick Oct 07/20, Up 14%) They are no longer holding it as it initially benefited from the COVID environment as people took on home projects. Since then earnings are tougher going forward, so they decided to exit. A well managed company.
0
BUY ON WEAKNESS
Richelieu Hardware
Mid-cap in building supplies and home improvement space. Growth cyclical. Tremendous compounder over time, about 19% over 10 years. Once you identify a company with organic and compounding growth like this, just buy it. Even better if you can get it on a pullback. Gangbuster year, sales grew 26%, earnings grew 62%. Future comparisons will be tough. Commodity cost pressures are upstream from them. Only 4 down years out of the last 25.
0
PAST TOP PICK
Richelieu Hardware
(A Top Pick Oct 07/20, Up 14%) She exited the position when the market started to move from COVID winners to recovery stories. It has held up quite well. She thinks the trends are very much still in place.
0
TOP PICK
Richelieu Hardware
Benefiting from shift in consumer spending to the home. Doorknobs, cabinet hardware. Undergoing a positive rerating by the market. Strong consumer tailwinds as people forced to stay home. Good business model. Lots of growth runway. Half of revenue growth comes from accretive acquisitions. Margins have upside. Yield is 0.73%. (Analysts’ price target is $35.00)
0
HOLD
Richelieu Hardware
Not a long-term hold. Near-term is okay. It's quasi-cyclical. If housing dips...oh boy. He owned this 30 years ago. A good operator with good product, but the macro environment is not good. If a recession comes, sell. Hold.
0
BUY
Richelieu Hardware
Since 2018, there's been a downtrend, but he likes buying coming in the past 6 months. As long as it holds above $24, he likes it. The next target is $30. There's definitely upside coming. If it drops below $24, it will re-test lows.
0
DON'T BUY
Richelieu Hardware
Average down? It had a great run since 2008, overtaking its fair market value, $24.50 now. Little upside here and not cheap.
0
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Richelieu Hardware(RCH-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Richelieu Hardware is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Richelieu Hardware(RCH-T) Frequently Asked Questions

What is Richelieu Hardware stock symbol?

Richelieu Hardware is a Canadian stock, trading under the symbol RCH-T on the Toronto Stock Exchange (RCH-CT). It is usually referred to as TSX:RCH or RCH-T

Is Richelieu Hardware a buy or a sell?

In the last year, 3 stock analysts published opinions about RCH-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Richelieu Hardware.

Is Richelieu Hardware a good investment or a top pick?

Richelieu Hardware was recommended as a Top Pick by on . Read the latest stock experts ratings for Richelieu Hardware.

Why is Richelieu Hardware stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Richelieu Hardware worth watching?

3 stock analysts on Stockchase covered Richelieu Hardware In the last year. It is a trending stock that is worth watching.

What is Richelieu Hardware stock price?

On 2024-07-23, Richelieu Hardware (RCH-T) stock closed at a price of $40.35.