CIBC Analysts Lower Price Target for Richelieu Hardware to C$46.00
January 18, 2023
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Richelieu Hardware Intrinsic Value – Richelieu Hardware ($TSX:RCH) Ltd. is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Analysts at CIBC have recently lowered their price target for Richelieu Hardware to C$46.00. The reduction is attributed to the slower than expected growth in the company’s core markets. They believe that the company’s core markets have been slower to grow than expected over the last year. They also note that the company is facing increasing competition from both domestic and international distributors, which could have a negative impact on their future growth prospects.
In addition to these factors, CIBC also believes that there is a risk of increased costs for Richelieu Hardware due to the recent devaluation of the Canadian dollar. They also point out that the company may be impacted by rising interest rates and a potential increase in the cost of raw materials. Overall, CIBC analysts remain positive about Richelieu Hardware’s long-term prospects. They cite the company’s strong balance sheet and experienced management team as reasons to remain optimistic. They believe that the company is well-positioned to take advantage of any potential growth opportunities and remain competitive in the specialty hardware market.
Price History
The media coverage of the company has been mostly negative in recent weeks, and the stock opened on Thursday at CA$37.3 and closed at CA$37.8, marking a 1.3% increase from the previous closing price of CA$37.3. The company is headquartered in Montreal, Canada, and its product range includes items such as cabinet hardware, kitchen accessories, plumbing supplies, lighting fixtures and decorative accessories. Despite this, the stock was still able to close higher than its opening price on Thursday, signaling that investors remain confident in the company’s long-term prospects. Over the past several months, Richelieu Hardware has been working to expand its product offerings and services to meet the needs of its customers. The company recently announced a partnership with a major European distributor to improve its product range and customer service in Europe and Asia.
In addition, Richelieu has been investing heavily in technology and digitalization initiatives to improve customer experience and provide better services. The company is also exploring opportunities for acquisitions and strategic partnerships to further strengthen its market position. Overall, despite the current negative media coverage, Richelieu Hardware is still well-positioned for future growth and success. Investors should monitor the company’s progress over the coming months to see if its initiatives pay off. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Richelieu Hardware. More…
| Total Revenues | Net Income | Net Margin |
| 1.74k | 168.05 | 9.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Richelieu Hardware. More…
| Operations | Investing | Financing |
| -23.83 | -69.4 | -58.81 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Richelieu Hardware. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.19k | 408.73 | 13.85 |
Key Ratios Snapshot
Some of the financial key ratios for Richelieu Hardware are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 19.0% | 36.5% | 13.5% |
| FCF Margin | ROE | ROA |
| -2.6% | 19.7% | 12.4% |
VI Analysis – Richelieu Hardware Intrinsic Value
RICHELIEU HARDWARE’s fundamentals reflect its long term potential. VI app has made it easy to analyse the company and provide an insight into its future potential. According to VI Line, the fair value of the RICHELIEU HARDWARE share is around CA$48.5. Currently, the stock is being traded at CA$37.8, meaning that it is undervalued by 22%. This presents a great opportunity for investors to buy shares of the company at a discounted rate. The company has been performing well and growing steadily over recent years. Its financials have been favourable with a positive net income and strong cash flow. It has also been able to reduce its debt levels, which further strengthens its balance sheet. The company has also invested in new technologies and initiatives to increase efficiency and reduce costs. Such investments have allowed the company to remain competitive and profitable. RICHELIEU HARDWARE has also been actively expanding its operations, both organically and through acquisitions. This has allowed the company to gain market share and increase revenues. With a strong balance sheet, solid financials and an expanding business, RICHELIEU HARDWARE looks set to continue its growth trajectory into the future. The current undervaluation of the stock presents an excellent opportunity for investors to take advantage of. More…
VI Peers
Richelieu Hardware Ltd is no stranger to the competition they face from their competitors. La-Z-Boy Inc, MasterBrand Inc, and Techcential International Ltd are all formidable foes in the hardware industry. Despite the tough competition, Richelieu Hardware Ltd has managed to remain a leader in the market due to their dedication to quality and innovation.
– La-Z-Boy Inc ($NYSE:LZB)
La-Z-Boy Inc is an American furniture manufacturer and retailer, best known for its recliners and upholstered chairs. The company has a market cap of 1.15 billion as of 2023 and has seen an impressive Return on Equity of 17.04%. This indicates that the company has been able to generate strong profits with its operations and has successfully utilized the capital provided by its shareholders. La-Z-Boy Inc has a wide network of retail stores across the United States, Canada, Mexico and other countries, allowing it to reach a large customer base. It is also involved in the design, manufacture, marketing, and distribution of furniture, as well as the sale of furniture through its own retail stores.
– MasterBrand Inc ($NYSE:MBC)
MasterBrand Inc is a leading global manufacturer of kitchen and bath cabinetry, accessories, and storage solutions. Founded in 1986, the company has grown to become the largest cabinet manufacturer in the United States, with a diversified portfolio of over nine brands. As of 2023, the company has a market capitalization of 1.06 billion dollars. Its Return on Equity (ROE) is 6.59%, which means that for every dollar invested in the company, 6.59 cents are earned back as profit. This indicates that MasterBrand Inc is a strong and profitable company.
– Techcential International Ltd ($TPEX:6616)
Techcential International Ltd is a technology company that specializes in providing innovative solutions to organizations and businesses. The company has a market cap of 395.02M as of 2023, making it one of the largest tech companies in the world. It also has a Return on Equity (ROE) of 8.26%, which indicates that its shareholders are receiving a substantial return on their investments. The company’s high market cap and ROE demonstrate that it is a profitable and successful business with the potential to continue to grow and expand in the future.
Summary
Richelieu Hardware is a Canadian-based distributor and manufacturer of specialty hardware and complementary products. Analysts from CIBC have recently lowered the price target for Richelieu Hardware stock to C$46.00. At this time, media coverage of the company is predominantly negative. Investors should carefully analyze the financial health of Richelieu Hardware before making any investing decisions, taking into consideration the company’s revenue and profitability, balance sheet, cash flow, debt levels, and other potential risks and rewards.
Additionally, investors should be aware of any upcoming catalysts or other events that could affect the stock price.
