Richelieu Hardware EBITDA vs. Net Income
| RCH Stock | CAD 38.19 0.40 1.06% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 265 M | Current Value 278.2 M | Quarterly Volatility 89.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.14 | 0.12 |
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| Net Profit Margin | 0.059 | 0.0561 |
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| Operating Profit Margin | 0.12 | 0.11 |
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| Pretax Profit Margin | 0.088 | 0.0786 |
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| Return On Assets | 0.096 | 0.0763 |
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| Return On Equity | 0.18 | 0.14 |
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For Richelieu Hardware profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Richelieu Hardware to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Richelieu Hardware utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Richelieu Hardware's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Richelieu Hardware over time as well as its relative position and ranking within its peers.
Richelieu |
Richelieu Hardware Net Income vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Richelieu Hardware's current stock value. Our valuation model uses many indicators to compare Richelieu Hardware value to that of its competitors to determine the firm's financial worth. Richelieu Hardware is rated third in ebitda category among its peers. It is rated second in net income category among its peers making up about 0.49 of Net Income per EBITDA. The ratio of EBITDA to Net Income for Richelieu Hardware is roughly 2.02 . At this time, Richelieu Hardware's EBITDA is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Richelieu Hardware by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Richelieu Hardware's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Richelieu Net Income vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Richelieu Hardware |
| = | 230.4 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
Richelieu Hardware |
| = | 113.83 M |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Richelieu Net Income Comparison
Richelieu Hardware is currently under evaluation in net income category among its peers.
Richelieu Hardware Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Richelieu Hardware, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Richelieu Hardware will eventually generate negative long term returns. The profitability progress is the general direction of Richelieu Hardware's change in net profit over the period of time. It can combine multiple indicators of Richelieu Hardware, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 32.9 M | 34.5 M | |
| Operating Income | 265 M | 278.2 M | |
| Income Before Tax | 179.6 M | 188.6 M | |
| Total Other Income Expense Net | -66.8 M | -63.4 M | |
| Net Income | 130.9 M | 137.4 M | |
| Income Tax Expense | 48.7 M | 51.2 M | |
| Net Income From Continuing Ops | 130.9 M | 97.9 M | |
| Net Income Applicable To Common Shares | 193.6 M | 203.3 M | |
| Net Interest Income | -12 M | -11.4 M | |
| Change To Netincome | 8.6 M | 9 M | |
| Net Income Per Share | 1.80 | 1.89 | |
| Income Quality | 2.14 | 2.25 | |
| Net Income Per E B T | 0.64 | 0.54 |
Richelieu Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Richelieu Hardware. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Richelieu Hardware position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Richelieu Hardware's important profitability drivers and their relationship over time.
Use Richelieu Hardware in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Richelieu Hardware position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Richelieu Hardware will appreciate offsetting losses from the drop in the long position's value.Richelieu Hardware Pair Trading
Richelieu Hardware Pair Trading Analysis
The ability to find closely correlated positions to Richelieu Hardware could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Richelieu Hardware when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Richelieu Hardware - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Richelieu Hardware to buy it.
The correlation of Richelieu Hardware is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Richelieu Hardware moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Richelieu Hardware moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Richelieu Hardware can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Richelieu Hardware position
In addition to having Richelieu Hardware in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Other Information on Investing in Richelieu Stock
To fully project Richelieu Hardware's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Richelieu Hardware at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Richelieu Hardware's income statement, its balance sheet, and the statement of cash flows.