Richelieu Hardware (TSX:RCH) is a Montreal-based company that manufactures, imports, and distributes specialty hardware and complementary products in North America. The pace of inflation has put pressure on contractors due to the increase in the cost of building materials. Fortunately, commodities like lumber have seen a price decrease in recent months.
Shares of Richelieu have dropped 5.1% in 2022 as of mid-afternoon trading on April 8. That has pushed the stock into negative territory in the year-over-year period. The company released its fourth quarter and full year 2021 earnings on January 20, 2022.
Sales were reported at $398 million in the fourth quarter of 2021 – up 24% from the previous year. Meanwhile, diluted net earnings per share jumped 64% to $0.79. For the full year, Richelieu delivered sales growth of 27% to $1.44 billion. On the business side, the company completed five acquisitions which including three promising snags in the United States. These are expected to significantly bolster sales going forward.
Richelieu has delivered strong sales growth in both Canada and the United States to close out the 2021 fiscal year. Cash flows from operating activities rose to $55.0 million or $0.97 per share compared to $36.2 million or $0.64 per share in the fourth quarter of 2020. This Canadian stock last possesses a favourable price-to-earnings ratio of 15. Moreover, it offers a quarterly dividend of $0.13 per share. That represents a modest 1.2% yield.
