Is it a good company at a reasonable price? I note that there are few analysts following this stock and the 2 analysts following it, they both give it a Hold rating. Simply Wall Street says it is overpriced. If you like this stock, maybe now is a good time to buy. On the other had the ratios are rather high. For example, the P/B Ratio is 1.47 where a good ratio is considered to be 1.50. It is always best to buy a stock a number of times over a few years and in different months. My testing is saying that it is relatively cheap.
I own this stock of Richelieu Hardware Ltd (TSX-RCH, OTC-RHUHF). I initially bought this stock in 2007 because it was recommended by the Investment Reporter. It is not on any of the dividend lists, probably because they only started to pay dividends in 2000, they are a rather small company and they did not increase dividends in 2009. This stock would be considered to be a dividend paying growth stock. In 2009, I thought I would add to what I had in this stock. This stock has been much recommended by MPL Communications.
This stock started to appear on the Money Sense 100 Best Dividend list for 2020. It has made the list every year after that. For 2026 it has a rating of B.
When I was updating my spreadsheet, I noticed I have had this stock for almost 17 years and to the end of December 2025 I have earnings a total return of 13.41% per year with 11.54% from capital gains and 1.87% from dividends. The dividend yield might be low but they have had good dividend increases. On my original purchase price, I am getting a dividend yield of 10.9%. Dividend yields on this stock is generally low and below 2%.
During the past year, all the officers I am following, including the CEO and CFO bought more shares in the company. They bought the stock at $37.00 and $38.00. None of the directors I follow bought more shares. But it is quite typical that directors generally do not buy shares.
If you had invested in this company in December 2015, for $1,017.90 you would have bought 45 shares at $22.62 per share. In December 2025, after 10 years you would have received $171.59 in dividends. The stock would be worth $1,780.20. Your total return would have been $1,951.79. This would be a total return of 6.98% per year with 5.75% from capital gain and 1.23% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $22.62 | $1,017.90 | 45 | 10 | $171.59 | $1,780.20 | $1,951.79 |
The current dividend yield is low with dividend growth good. The current dividend yield is low (below 2%) at 1.46%. The 5, 10 and historical dividend yields are low at 1.42%, 0.99% and 1.15%. The dividend growth is good (15% per year or higher) at 25.1% per year over the past 5 years. There have been some big increases in the past 5 years, but the last increase was in 2025 and it was for 2.2%. Also, note that 5 years ago, the company only paid 3 dividends, so increases may not be as good as they appear. The dividend increases for the past 10 years is at 12% per year, which is at a moderate rate (8% to 14% per year).
The Dividend Payout Ratios (DPR) are good. The DPR for 2025 for Earnings per Share (EPS) is good at 40% with 5 year coverage at 25%. The DPR for 2025 for Cash Flow per Share (CFPS) is good at 19% with 5 year coverage at 16%. The DPR for 2025 for Free Cash Flow (FCF) is good at 34% with 5 year coverage at 40%. There are two values for FCF of $187.20 and $100.67 and I am using the $100.67.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 39.56% | 25.38% |
| CFPS | 18.66% | 15.78% |
| FCF | 33.66% | 39.99% |
Debt Ratios are very good. The Long Term Debt/Market Cap Ratio for 2025 is good at 0.00 and currently at 0.00. The long term debt is so low it does not register. The Liquidity Ratio for 2025 is good at 3.29 and 3.29 currently. The Debt Ratio for 2025 is good at 3.01 and 3.01 currently. The Leverage and Debt/Equity Ratios for 2025 are good at 1.50 and 0.50 and currently at 1.50 and 0.50.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.00 | 0.00 |
| Intang/GW | 0.10 | 0.10 |
| Liquidity | 3.29 | 3.29 |
| Liq. + CF | 3.91 | 3.91 |
| Debt Ratio | 3.01 | 3.01 |
| Leverage | 1.50 | 1.50 |
| D/E Ratio | 0.50 | 0.50 |
The Total Return per year is shown below for years of 5 to 32 to the end of 2025. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2020 | 5 | 25.10% | 5.16% | 3.67% | 1.50% |
| 2015 | 10 | 11.86% | 6.98% | 5.75% | 1.23% |
| 2010 | 15 | 11.49% | 10.91% | 9.47% | 1.45% |
| 2005 | 20 | 11.73% | 9.66% | 8.39% | 1.27% |
| 2000 | 25 | 13.03% | 13.78% | 12.07% | 1.72% |
| 1995 | 30 | 16.02% | 14.23% | 1.79% | |
| 1993 | 32 | 14.83% | 13.34% | 1.49% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 17.88,20.48 and 23.08. The corresponding 10 year ratios are 18.66, 21.60 and 26.19. The corresponding historical ratios are 13.06, 15.82 and 18.34. The current ratio is 23.01 based on a stock price of $40.72 and EPS estimate for 2026 of $1.77. The current ratio is between the median and high ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable but above the median.
I get a Graham Price of $25.62. The 10-year low, median, and high median Price/Graham Price Ratios are 1.33, 1.61 and 1.91. The current ratio is 1.59 based on a stock price of $40.72. This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I get a 10-year median Price/Book Value per Share Ratio of 2.97. The current ratio is 2.47 based on a Book Value of $904.9M, Book Value per Share of $16.48 and a stock price of $40.72. The current ratio is 17% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median.
I also have Book Value per Share estimate for 2026 of $18.39. This implies a ratio of 2.21 with a stock price of $40.72 and a Book Value of $1009.8M. This ratio is 26% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get a 10-year median Price/Cash Flow per Share Ratio of 16.05. The current ratio is 11.05 based on Cash Flow for the last 12 months of $202.4M, Cash Flow per Share of $3.69 and a stock price of $40.72. The current ratio is 31% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
I get an historical median dividend yield of 1.15%. The current dividend yield is 1.54% based on dividends of $0.6264 and a stock price of $40.72. The current dividend yield is 34% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
I get a 10 year median dividend yield of 0.99%. The current dividend yield is 1.54% based on dividends of $0.6264 and a stock price of $40.72. The current dividend yield is 55% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap.
The 10-year median Price/Sales (Revenue) Ratio is 1.40. The current P/S Ratio is 1.07 based on Revenue estimate for 2026 of $2,084M, Revenue per Share of $37.95 and a stock price of $40.72. The current ratio is 23% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively cheap.
Results of stock price testing is that the stock price is probably cheap. The dividend yield tests say that the stock price is relatively cheap. It is confirmed by the P/S Ratio test. The other tests run from cheap to reasonable. However, the ratios are on the high side. The 10 year median P/GP Ratios are between 1.33 and 1.91, but good ratios are expected to be from around 0.85 to 1.20. The 10 year median P/B Ratio is 2.97 where a good ratio is considered to be around 1.50.
When I look at analysts’ recommendations, I find only Hold (2). The consensus would be a Hold. The 12 month stock price consensus is $40.50 with a high of $41.00 and a low of $40.00. The consensus stock price of $40.50 implies a total return of 1% with a 0.54% capital loss and dividends of 1.54% based on a current stock price of $40.72.
In 2024 on Stock Chase same liked this stock and some did not. There is only one entry in 2025 and it is a Partial Buy by analysts who thinks there was a good entry point at $42.11. Amy Legate-Wolfe on Motley Fool says Richelieu Hardware is an quietly exceptional Canadian stock that rarely makes headlines but consistently delivers the kind of performance long-term investors love. Jitendra Parashar on Motley Fool says on October 10, 2025 that shares of Richelieu Hardware (TSX:RCH) jumped 4.5% to $34.28 apiece after it reported solid quarterly earnings and strong acquisition-driven growth. The company put out a press release via Newswire about their fourth quarter results for 2025.
Simply Wall Street via Yahoo Finance reviews this stock and thinks it is overvalued at $41.96.
Richelieu Hardware Ltd is a Canada-based company that imports, manufactures, and distributes specialty hardware and complementary products. Headquartered in Montreal, the company operates across Canada and the eastern and midwestern regions of the United States. The majority of the company's sales are derived from its operations in Canada. Its web site is here Richelieu Hardware Ltd.
The last stock I wrote about was about was Cogeco Communications Inc (TSX-CCA, OTC-CGEAF) ... learn more. The next stock I will write about will be EQB Inc (TSX-EQB, OTC-EQGPF) ... learn more on Wednesday, February 4, 2026 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks February 2026 … learn more on Tuesday, February 3, 2026 around 5 pm.
This blog is meant for educational purposes only and is not to provide investment advice. I am not a licensed professional investment advisor. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.
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