Richelieu Hardware Ltd revenue jumped on 15.9% in 2015 and EBITDA Margin showed almost no change
21.01.2016 • About Richelieu Hardware Ltd (
$RCH) • By InTwits
Richelieu Hardware Ltd reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Richelieu Hardware Ltd is a growth stock: FY2015 revenue growth was 15.9%, 5 year revenue CAGR was 10.9% at FY2015 ROIC 22.8%
- EBITDA Margin is relatively stable: 11.7% in FY2015 vs. 12.0% in FY2014 vs. 12.8% in FY2011
- Richelieu Hardware Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.2%. At the same time it's in pair with industry average of 6.9%.
- CAPEX is quite volatile: 11.0 in FY2015, 5.5 in FY2014, 3.5 in FY2013, 4.8 in FY2012, 10.7 in FY2011
- The company has highly profitable business model: ROIC is at 22.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Richelieu Hardware Ltd ($RCH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 523.8 | 565.8 | 586.8 | 646.9 | 749.6 | 15.9% |
| Gross Profit | 67.1 | 71.2 | 70.4 | 77.4 | 87.7 | 13.3% |
| EBITDA | 67.1 | 71.2 | 70.4 | 77.4 | 87.7 | 13.3% |
| Net Income | 39.7 | 45.4 | 46.4 | 52.4 | 58.7 | 12.1% |
Balance Sheet
|
|---|
| Cash | 29.1 | 51.6 | 46.2 | 33.7 | 29.5 | -12.7% |
| Short Term Debt | 4.3 | 1.7 | 1.4 | 3.4 | 2.2 | -33.0% |
| Long Term Debt | 1.2 | 0.8 | 0.0 | 2.0 | 1.3 | -33.3% |
Cash flow
|
|---|
| Capex | 10.7 | 4.8 | 3.5 | 5.5 | 11.0 | 98.4% |
Ratios
|
|---|
| Revenue growth | 17.2% | 8.0% | 3.7% | 10.2% | 15.9% | |
| EBITDA growth | 5.2% | 6.0% | -1.1% | 10.0% | 13.3% | |
| Gross Margin | 12.8% | 12.6% | 12.0% | 12.0% | 11.7% | -0.3% |
| EBITDA Margin | 12.8% | 12.6% | 12.0% | 12.0% | 11.7% | -0.3% |
| Net Income Margin | 7.6% | 8.0% | 7.9% | 8.1% | 7.8% | -0.3% |
| CAPEX, % of revenue | 2.0% | 0.8% | 0.6% | 0.9% | 1.5% | 0.6% |
| ROIC | 22.4% | 22.8% | 21.4% | 22.7% | 22.8% | 0.1% |
| ROE | 15.7% | 16.9% | 16.2% | 17.5% | 17.5% | -0.0% |
| Net Debt/EBITDA | -0.4x | -0.7x | -0.6x | -0.4x | -0.3x | 0.1x |
Revenue and profitability
The company's Revenue jumped on 15.9% in FY2015. EBITDA Margin showed almost no change in FY2015.
Gross Margin showed almost no change in FY2015.
Net Income marign showed almost no change in FY2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in FY2015. CAPEX/Revenue increased slightly on 0.62 pp from 0.85% in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 0.97%.
Return on investment
The company operates at high and attractive ROIC (22.82%) while ROE is a bit lower (17.48%). ROIC showed almost no change in FY2015. ROE showed almost no change in FY2015.
Leverage (Debt)
Debt level is -0.3x Net Debt / EBITDA and 0.0x Debt / EBITDA. Net Debt / EBITDA increased on 0.1x from -0.4x to -0.3x in FY2015. Debt dropped on 33.1% in FY2015 while cash dropped on 12.7% in FY2015.
Appendix 1: Peers in Consumer, Cyclical
Below you can find Richelieu Hardware Ltd benchmarking vs. other companies in Consumer, Cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 11.5% | 5.3% | 5.3% | 7.2% | 3.3% |
|---|
| Richelieu Hardware Ltd ($RCH) | | 8.0% | 3.7% | 10.2% | 15.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.9% | 36.5% | 32.1% | 34.6% | 36.9% |
|---|
| Richelieu Hardware Ltd ($RCH) | 12.8% | 12.6% | 12.0% | 12.0% | 11.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | |
| |
|---|
| Median (65 companies) | 8.4% | 7.9% | 9.7% | 9.6% | 8.7% |
|---|
| Richelieu Hardware Ltd ($RCH) | 12.8% | 12.6% | 12.0% | 12.0% | 11.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.9% | 2.7% | 2.9% | 2.4% | 2.7% |
|---|
| Richelieu Hardware Ltd ($RCH) | 2.0% | 0.8% | 0.6% | 0.9% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 7.9% |
|---|
| Richelieu Hardware Ltd ($RCH) | 22.4% | 22.8% | 21.4% | 22.7% | 22.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.1x |
|---|
| Richelieu Hardware Ltd ($RCH) | -0.4x | -0.7x | -0.6x | -0.4x | -0.3x |
