Ticker: RCH | Market: TSX | Price: $31.00 | Yield: 0.74% | Cap: $1.8B
Richelieu Hardware, is a relatively unknown Canadian stock, but not for good reason. Under followed by analysts because they don’t raise debt or equity, these guys have been delivering the goods for years. Consistent FCF generation on strong operating cash flow and very little required sustaining capital. Due to its asset light business model, RCH manages to achieve an excellent ROIC, which has averaged 16% for the last 10 years. Extremely high quality stock to buy and hold.