Q: What is your current view on Richelieu? Has the stock price dropped enough to warrant a BUY ? How do you see its business being affected by tariffs?
Thanks
Thanks
5i Research Answer:
We think RCH is a good company, but with 33% of sales in the US, its small size, its cyclical exposure, debt (a bit high) and growth (OK, not great), we think it should be cheaper than 18X earnings, especially considering the market backdrop, tariffs, and uncertainty. The last quarter was decent but the outlook more mixed. It raised its dividend in January and we would see it as OK, but perhaps a bit more vulnerable in the type of market we have right now.