Topic: How To Invest

Q: I’m interested in TSI’s take on Richelieu Hardware, trading on the TSX. Thank you.

Article Excerpt

A: Richelieu Hardware Ltd., $38.16, symbol RCH on Toronto (Shares outstanding: 55.2 million; Market cap: $2.1 billion; www.richelieu.com), imports, makes and distributes specialty hardware products. The company sells to manufacturers of kitchen, bathroom, storage and closet cabinetry as well as makers of home and office furniture, and doors and windows. In addition, the firm sells to hardware retailers, including renovation superstores. Richelieu offers a broad mix of high-end products sourced from manufacturers worldwide. It sells over 145,000 different products to more than 120,000 customers. The company serves those customers through 112 centres across North America. These consist of 61 U.S. distribution centres, and 41 Canadian distribution centres and three manufacturing plants. The manufacturing plants make veneer sheets and edge banding products, and decorative moldings and components for the door industry. In addition, they make custom products, including at a 3D scanning centre. Richelieu’s main product categories include furniture, glass and building hardware, lighting systems, finishing and decoration products, and ergonomic workstation parts. They also…