Logo image of HMM-A.CA

HAMMOND MANUFACTURING -CL A (HMM-A.CA) Stock Fundamental Analysis

TSX:HMM-A - Toronto Stock Exchange - CA40851T1021 - Common Stock - Currency: CAD

8.7  +0.06 (+0.69%)

Fundamental Rating

7

HMM-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 14 industry peers in the Electrical Equipment industry. HMM-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HMM-A has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

HMM-A had positive earnings in the past year.
HMM-A had a positive operating cash flow in the past year.
Each year in the past 5 years HMM-A has been profitable.
In the past 5 years HMM-A always reported a positive cash flow from operatings.
HMM-A.CA Yearly Net Income VS EBIT VS OCF VS FCFHMM-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M 30M

1.2 Ratios

HMM-A has a better Return On Assets (8.55%) than 92.86% of its industry peers.
Looking at the Return On Equity, with a value of 15.37%, HMM-A belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.28%, HMM-A belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HMM-A is in line with the industry average of 13.20%.
Industry RankSector Rank
ROA 8.55%
ROE 15.37%
ROIC 14.28%
ROA(3y)8.53%
ROA(5y)7.52%
ROE(3y)16.35%
ROE(5y)14.55%
ROIC(3y)14.52%
ROIC(5y)12.21%
HMM-A.CA Yearly ROA, ROE, ROICHMM-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

With an excellent Profit Margin value of 7.50%, HMM-A belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of HMM-A has grown nicely.
HMM-A has a better Operating Margin (11.28%) than 92.86% of its industry peers.
In the last couple of years the Operating Margin of HMM-A has grown nicely.
Looking at the Gross Margin, with a value of 37.12%, HMM-A belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Gross Margin of HMM-A has grown nicely.
Industry RankSector Rank
OM 11.28%
PM (TTM) 7.5%
GM 37.12%
OM growth 3Y24.34%
OM growth 5Y17.44%
PM growth 3Y22.81%
PM growth 5Y18.86%
GM growth 3Y8.33%
GM growth 5Y3.92%
HMM-A.CA Yearly Profit, Operating, Gross MarginsHMM-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HMM-A is creating value.
The number of shares outstanding for HMM-A remains at a similar level compared to 1 year ago.
Compared to 5 years ago, HMM-A has more shares outstanding
HMM-A has a better debt/assets ratio than last year.
HMM-A.CA Yearly Shares OutstandingHMM-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
HMM-A.CA Yearly Total Debt VS Total AssetsHMM-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

2.2 Solvency

HMM-A has an Altman-Z score of 3.02. This indicates that HMM-A is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.02, HMM-A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
HMM-A has a debt to FCF ratio of 2.62. This is a good value and a sign of high solvency as HMM-A would need 2.62 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 2.62, HMM-A belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
HMM-A has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, HMM-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 2.62
Altman-Z 3.02
ROIC/WACC2.26
WACC6.33%
HMM-A.CA Yearly LT Debt VS Equity VS FCFHMM-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 1.80 indicates that HMM-A should not have too much problems paying its short term obligations.
HMM-A's Current ratio of 1.80 is fine compared to the rest of the industry. HMM-A outperforms 71.43% of its industry peers.
HMM-A has a Quick Ratio of 1.80. This is a bad value and indicates that HMM-A is not financially healthy enough and could expect problems in meeting its short term obligations.
HMM-A has a Quick ratio of 0.85. This is in the lower half of the industry: HMM-A underperforms 64.29% of its industry peers.
The current and quick ratio evaluation for HMM-A is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.8
Quick Ratio 0.85
HMM-A.CA Yearly Current Assets VS Current LiabilitesHMM-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

3

3. Growth

3.1 Past

HMM-A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.07%.
HMM-A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.01% yearly.
Looking at the last year, HMM-A shows a small growth in Revenue. The Revenue has grown by 2.78% in the last year.
HMM-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.51% yearly.
EPS 1Y (TTM)-2.07%
EPS 3Y33.62%
EPS 5Y31.01%
EPS Q2Q%-5.24%
Revenue 1Y (TTM)2.78%
Revenue growth 3Y8.8%
Revenue growth 5Y10.51%
Sales Q2Q%7.73%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
HMM-A.CA Yearly Revenue VS EstimatesHMM-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 5.37 indicates a rather cheap valuation of HMM-A.
100.00% of the companies in the same industry are more expensive than HMM-A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.18. HMM-A is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 5.37
Fwd PE N/A
HMM-A.CA Price Earnings VS Forward Price EarningsHMM-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HMM-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HMM-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 3.45
EV/EBITDA 2.84
HMM-A.CA Per share dataHMM-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

HMM-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.17
EPS Next 2YN/A
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.69%, HMM-A is not a good candidate for dividend investing.
HMM-A's Dividend Yield is rather good when compared to the industry average which is at 0.94. HMM-A pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, HMM-A's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.69%

5.2 History

On average, the dividend of HMM-A grows each year by 8.56%, which is quite nice.
HMM-A has paid a dividend for at least 10 years, which is a reliable track record.
HMM-A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years7
HMM-A.CA Yearly Dividends per shareHMM-A.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.01 0.02 0.03 0.04 0.05

5.3 Sustainability

HMM-A pays out 3.70% of its income as dividend. This is a sustainable payout ratio.
The dividend of HMM-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP3.7%
EPS Next 2YN/A
EPS Next 3YN/A
HMM-A.CA Yearly Income VS Free CF VS DividendHMM-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M
HMM-A.CA Dividend Payout.HMM-A.CA Dividend Payout, showing the Payout Ratio.HMM-A.CA Dividend Payout.PayoutRetained Earnings

HAMMOND MANUFACTURING -CL A

TSX:HMM-A (5/2/2025, 7:00:00 PM)

8.7

+0.06 (+0.69%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)03-04 2025-03-04
Earnings (Next)05-05 2025-05-05
Inst Owners0.34%
Inst Owner ChangeN/A
Ins Owners10.24%
Ins Owner ChangeN/A
Market Cap74.47M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.69%
Yearly Dividend0.06
Dividend Growth(5Y)8.56%
DP3.7%
Div Incr Years0
Div Non Decr Years7
Ex-Date03-14 2025-03-14 (0.03)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 5.37
Fwd PE N/A
P/S 0.3
P/FCF 3.45
P/OCF 2.21
P/B 0.62
P/tB 0.63
EV/EBITDA 2.84
EPS(TTM)1.62
EY18.62%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)2.53
FCFY29.02%
OCF(TTM)3.93
OCFY45.2%
SpS28.61
BVpS13.96
TBVpS13.92
PEG (NY)N/A
PEG (5Y)0.17
Profitability
Industry RankSector Rank
ROA 8.55%
ROE 15.37%
ROCE 19.08%
ROIC 14.28%
ROICexc 17.21%
ROICexgc 17.26%
OM 11.28%
PM (TTM) 7.5%
GM 37.12%
FCFM 8.83%
ROA(3y)8.53%
ROA(5y)7.52%
ROE(3y)16.35%
ROE(5y)14.55%
ROIC(3y)14.52%
ROIC(5y)12.21%
ROICexc(3y)15.98%
ROICexc(5y)13.22%
ROICexgc(3y)16.03%
ROICexgc(5y)13.27%
ROCE(3y)20.16%
ROCE(5y)16.86%
ROICexcg growth 3Y21.9%
ROICexcg growth 5Y17.29%
ROICexc growth 3Y21.97%
ROICexc growth 5Y17.31%
OM growth 3Y24.34%
OM growth 5Y17.44%
PM growth 3Y22.81%
PM growth 5Y18.86%
GM growth 3Y8.33%
GM growth 5Y3.92%
F-Score6
Asset Turnover1.14
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF 2.62
Debt/EBITDA 0.46
Cap/Depr 122.74%
Cap/Sales 4.92%
Interest Coverage 7.96
Cash Conversion 89.94%
Profit Quality 117.63%
Current Ratio 1.8
Quick Ratio 0.85
Altman-Z 3.02
F-Score6
WACC6.33%
ROIC/WACC2.26
Cap/Depr(3y)184.34%
Cap/Depr(5y)162.13%
Cap/Sales(3y)6.55%
Cap/Sales(5y)5.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.07%
EPS 3Y33.62%
EPS 5Y31.01%
EPS Q2Q%-5.24%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.78%
Revenue growth 3Y8.8%
Revenue growth 5Y10.51%
Sales Q2Q%7.73%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1.23%
EBIT growth 3Y35.29%
EBIT growth 5Y29.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y590.32%
FCF growth 3Y86.02%
FCF growth 5Y19.8%
OCF growth 1Y99.26%
OCF growth 3Y31.15%
OCF growth 5Y23.52%