HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Fundamental Analysis & Valuation

TSX:HPS-A • CA4085491039

Current stock price

182.22 CAD
-3.53 (-1.9%)
Last:

This HPS-A.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. HPS-A.CA Profitability Analysis

1.1 Basic Checks

  • In the past year HPS-A was profitable.
  • In the past year HPS-A had a positive cash flow from operations.
  • Of the past 5 years HPS-A 4 years were profitable.
  • Of the past 5 years HPS-A 4 years had a positive operating cash flow.
HPS-A.CA Yearly Net Income VS EBIT VS OCF VS FCFHPS-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500M -1B -1.5B -2B -2.5B

1.2 Ratios

  • With an excellent Return On Assets value of 13.83%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • HPS-A has a Return On Equity of 23.41%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 19.32%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • HPS-A had an Average Return On Invested Capital over the past 3 years of 23.25%. This is significantly above the industry average of 12.28%.
Industry RankSector Rank
ROA 13.83%
ROE 23.41%
ROIC 19.32%
ROA(3y)14.95%
ROA(5y)11.75%
ROE(3y)25.36%
ROE(5y)20.1%
ROIC(3y)23.25%
ROIC(5y)N/A
HPS-A.CA Yearly ROA, ROE, ROICHPS-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -500 -1K

1.3 Margins

  • With an excellent Profit Margin value of 9.47%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Profit Margin of HPS-A has grown nicely.
  • With an excellent Operating Margin value of 13.11%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • In the last couple of years the Operating Margin of HPS-A has grown nicely.
  • HPS-A has a Gross Margin of 31.21%. This is in the better half of the industry: HPS-A outperforms 80.00% of its industry peers.
  • HPS-A's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 13.11%
PM (TTM) 9.47%
GM 31.21%
OM growth 3Y34.29%
OM growth 5Y17%
PM growth 3Y31.49%
PM growth 5Y22.92%
GM growth 3Y7.61%
GM growth 5Y5.96%
HPS-A.CA Yearly Profit, Operating, Gross MarginsHPS-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -200 -400 -600 -800

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4

2. HPS-A.CA Health Analysis

2.1 Basic Checks

  • HPS-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • HPS-A has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
HPS-A.CA Yearly Shares OutstandingHPS-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
HPS-A.CA Yearly Total Debt VS Total AssetsHPS-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

2.2 Solvency

  • An Altman-Z score of 7.47 indicates that HPS-A is not in any danger for bankruptcy at the moment.
  • HPS-A's Altman-Z score of 7.47 is fine compared to the rest of the industry. HPS-A outperforms 73.33% of its industry peers.
  • A Debt/Equity ratio of 0.25 indicates that HPS-A is not too dependend on debt financing.
  • HPS-A has a Debt to Equity ratio (0.25) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Altman-Z 7.47
ROIC/WACC2.48
WACC7.78%
HPS-A.CA Yearly LT Debt VS Equity VS FCFHPS-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M 200M 300M

2.3 Liquidity

  • HPS-A has a Current Ratio of 1.84. This is a normal value and indicates that HPS-A is financially healthy and should not expect problems in meeting its short term obligations.
  • HPS-A has a Current ratio (1.84) which is in line with its industry peers.
  • A Quick Ratio of 1.03 indicates that HPS-A should not have too much problems paying its short term obligations.
  • HPS-A has a Quick ratio of 1.03. This is comparable to the rest of the industry: HPS-A outperforms 46.67% of its industry peers.
Industry RankSector Rank
Current Ratio 1.84
Quick Ratio 1.03
HPS-A.CA Yearly Current Assets VS Current LiabilitesHPS-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. HPS-A.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.77% over the past year.
  • Measured over the past years, HPS-A shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.72% on average per year.
  • HPS-A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.19%.
  • Measured over the past years, HPS-A shows a quite strong growth in Revenue. The Revenue has been growing by 17.05% on average per year.
EPS 1Y (TTM)18.77%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%6.57%
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%

3.2 Future

  • HPS-A is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.83% yearly.
  • The Revenue is expected to grow by 23.32% on average over the next years. This is a very strong growth
EPS Next Y9.51%
EPS Next 2Y18.35%
EPS Next 3Y21.83%
EPS Next 5YN/A
Revenue Next Year11.86%
Revenue Next 2Y26.45%
Revenue Next 3Y23.32%
Revenue Next 5YN/A

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HPS-A.CA Yearly Revenue VS EstimatesHPS-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B
HPS-A.CA Yearly EPS VS EstimatesHPS-A.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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4

4. HPS-A.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 26.92, which means the current valuation is very expensive for HPS-A.
  • Based on the Price/Earnings ratio, HPS-A is valued cheaper than 93.33% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, HPS-A is valued at the same level.
  • The Price/Forward Earnings ratio is 21.65, which indicates a rather expensive current valuation of HPS-A.
  • Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 66.67% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, HPS-A is valued at the same level.
Industry RankSector Rank
PE 26.92
Fwd PE 21.65
HPS-A.CA Price Earnings VS Forward Price EarningsHPS-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • HPS-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HPS-A is cheaper than 93.33% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 13.15
HPS-A.CA Per share dataHPS-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 20 40 60 80

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HPS-A does not grow enough to justify the current Price/Earnings ratio.
  • HPS-A has an outstanding profitability rating, which may justify a higher PE ratio.
  • HPS-A's earnings are expected to grow with 21.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.83
PEG (5Y)0.62
EPS Next 2Y18.35%
EPS Next 3Y21.83%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. HPS-A.CA Dividend Analysis

5.1 Amount

  • HPS-A has a yearly dividend return of 0.59%, which is pretty low.
  • HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.08. HPS-A pays more dividend than 100.00% of the companies in the same industry.
  • With a Dividend Yield of 0.59, HPS-A pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.59%

5.2 History

  • On average, the dividend of HPS-A grows each year by 28.23%, which is quite nice.
  • HPS-A has been paying a dividend for at least 10 years, so it has a reliable track record.
  • HPS-A has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)28.23%
Div Incr Years3
Div Non Decr Years14
HPS-A.CA Yearly Dividends per shareHPS-A.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.2 0.4 0.6 0.8 1

5.3 Sustainability

  • HPS-A pays out 16.22% of its income as dividend. This is a sustainable payout ratio.
  • HPS-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.22%
EPS Next 2Y18.35%
EPS Next 3Y21.83%
HPS-A.CA Yearly Income VS Free CF VS DividendHPS-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M
HPS-A.CA Dividend Payout.HPS-A.CA Dividend Payout, showing the Payout Ratio.HPS-A.CA Dividend Payout.PayoutRetained Earnings

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HPS-A.CA Fundamentals: All Metrics, Ratios and Statistics

HAMMOND POWER SOLUTIONS INC

TSX:HPS-A (3/27/2026, 7:00:00 PM)

182.22

-3.53 (-1.9%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)03-19
Earnings (Next)04-29
Inst Owners47.7%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.66B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target239.96 (31.69%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.59%
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.22%
Div Incr Years3
Div Non Decr Years14
Ex-Date03-19
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.26%
Min EPS beat(2)-36.04%
Max EPS beat(2)-10.47%
EPS beat(4)2
Avg EPS beat(4)-7.93%
Min EPS beat(4)-36.04%
Max EPS beat(4)8.54%
EPS beat(8)4
Avg EPS beat(8)-6.8%
EPS beat(12)7
Avg EPS beat(12)6.41%
EPS beat(16)11
Avg EPS beat(16)16.81%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-2.05%
Revenue beat(12)5
Avg Revenue beat(12)-1.28%
Revenue beat(16)9
Avg Revenue beat(16)2.84%
PT rev (1m)12.66%
PT rev (3m)12.66%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-0.41%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
Industry RankSector Rank
PE 26.92
Fwd PE 21.65
P/S 1.95
P/FCF N/A
P/OCF 96.11
P/B 4.82
P/tB 5.24
EV/EBITDA 13.15
EPS(TTM)6.77
EY3.72%
EPS(NY)8.42
Fwd EY4.62%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.04%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.83
PEG (5Y)0.62
Graham Number75.85
Profitability
Industry RankSector Rank
ROA 13.83%
ROE 23.41%
ROCE 30.62%
ROIC 19.32%
ROICexc 21.21%
ROICexgc 22.81%
OM 13.11%
PM (TTM) 9.47%
GM 31.21%
FCFM N/A
ROA(3y)14.95%
ROA(5y)11.75%
ROE(3y)25.36%
ROE(5y)20.1%
ROIC(3y)23.25%
ROIC(5y)N/A
ROICexc(3y)26.69%
ROICexc(5y)N/A
ROICexgc(3y)29.65%
ROICexgc(5y)N/A
ROCE(3y)32.72%
ROCE(5y)N/A
ROICexgc growth 3Y25.72%
ROICexgc growth 5Y14.61%
ROICexc growth 3Y29.42%
ROICexc growth 5Y15.58%
OM growth 3Y34.29%
OM growth 5Y17%
PM growth 3Y31.49%
PM growth 5Y22.92%
GM growth 3Y7.61%
GM growth 5Y5.96%
F-Score2
Asset Turnover1.46
Health
Industry RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Debt/EBITDA 0.68
Cap/Depr 227.4%
Cap/Sales 4.32%
Interest Coverage 66.57
Cash Conversion 13.53%
Profit Quality N/A
Current Ratio 1.84
Quick Ratio 1.03
Altman-Z 7.47
F-Score2
WACC7.78%
ROIC/WACC2.48
Cap/Depr(3y)184.74%
Cap/Depr(5y)140.48%
Cap/Sales(3y)3.24%
Cap/Sales(5y)2.57%
Profit Quality(3y)46.7%
Profit Quality(5y)68.21%
High Growth Momentum
Growth
EPS 1Y (TTM)18.77%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%6.57%
EPS Next Y9.51%
EPS Next 2Y18.35%
EPS Next 3Y21.83%
EPS Next 5YN/A
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%
Revenue Next Year11.86%
Revenue Next 2Y26.45%
Revenue Next 3Y23.32%
Revenue Next 5YN/A
EBIT growth 1Y19.26%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year30.08%
EBIT Next 3Y32.24%
EBIT Next 5YN/A
FCF growth 1Y-238.38%
FCF growth 3Y18%
FCF growth 5Y11.75%
OCF growth 1Y-47.12%
OCF growth 3Y46.24%
OCF growth 5Y29.45%

HAMMOND POWER SOLUTIONS INC / HPS-A.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?

ChartMill assigns a fundamental rating of 7 / 10 to HPS-A.CA.


What is the valuation status of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?

ChartMill assigns a valuation rating of 4 / 10 to HAMMOND POWER SOLUTIONS INC (HPS-A.CA). This can be considered as Fairly Valued.


What is the profitability of HPS-A stock?

HAMMOND POWER SOLUTIONS INC (HPS-A.CA) has a profitability rating of 9 / 10.


What is the valuation of HAMMOND POWER SOLUTIONS INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 26.92 and the Price/Book (PB) ratio is 4.82.


What is the expected EPS growth for HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?

The Earnings per Share (EPS) of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is expected to grow by 9.51% in the next year.