HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
168.97 CAD
-4.46 (-2.57%)
Overall HPS-A gets a fundamental rating of 7 out of 10. We evaluated HPS-A against 14 industry peers in the Electrical Equipment industry. While HPS-A has a great profitability rating, there are some minor concerns on its financial health. HPS-A is not overvalued while it is showing excellent growth. This is an interesting combination. This makes HPS-A very considerable for growth investing!
1. Profitability
1.1 Basic Checks
HPS-A had positive earnings in the past year.
In the past year HPS-A had a positive cash flow from operations.
Each year in the past 5 years HPS-A has been profitable.
HPS-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 13.83%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HPS-A has a better Return On Equity (23.41%) than 100.00% of its industry peers.
HPS-A has a Return On Invested Capital of 19.32%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HPS-A is significantly above the industry average of 12.42%.
| Industry Rank | Sector 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
1.3 Margins
The Profit Margin of HPS-A (9.47%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of HPS-A has grown nicely.
HPS-A's Operating Margin of 13.11% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Operating Margin has improved in the last couple of years.
HPS-A's Gross Margin of 31.21% is amongst the best of the industry. HPS-A outperforms 85.71% of its industry peers.
In the last couple of years the Gross Margin of HPS-A has grown nicely.
| Industry Rank | Sector 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%
2. Health
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 about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HPS-A has been increased compared to 5 years ago.
Compared to 1 year ago, HPS-A has an improved debt to assets ratio.
2.2 Solvency
HPS-A has an Altman-Z score of 7.09. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 7.09, HPS-A is doing good in the industry, outperforming 71.43% of the companies in the same industry.
HPS-A has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.25, HPS-A is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.09 |
ROIC/WACC2.54
WACC7.61%
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 of 1.84. This is in the better half of the industry: HPS-A outperforms 64.29% of its industry peers.
HPS-A has a Quick Ratio of 1.03. 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's Quick ratio of 1.03 is in line compared to the rest of the industry. HPS-A outperforms 42.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
HPS-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.77%, which is quite good.
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.
The Revenue has grown by 11.19% in the past year. This is quite good.
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 quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.16% yearly.
HPS-A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.21% yearly.
EPS Next Y10.2%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
EPS Next 5YN/A
Revenue Next Year11.9%
Revenue Next 2Y12.99%
Revenue Next 3Y12.21%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 24.96, the valuation of HPS-A can be described as rather expensive.
Based on the Price/Earnings ratio, HPS-A is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
HPS-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.15.
The Price/Forward Earnings ratio is 20.63, 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 71.43% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HPS-A to the average of the S&P500 Index (36.22), we can say HPS-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 20.63 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than HPS-A, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.95 |
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 16.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.45
PEG (5Y)0.57
EPS Next 2Y16.75%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, HPS-A is not a good candidate for dividend investing.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.58. HPS-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.64, HPS-A pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of HPS-A is nicely growing with an annual growth rate of 28.23%!
HPS-A has paid a dividend for at least 10 years, which is 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
5.3 Sustainability
16.22% of the earnings are spent on dividend by HPS-A. This is a low number and sustainable payout ratio.
The dividend of HPS-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.22%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
TSX:HPS-A (12/1/2025, 7:00:00 PM)
168.97
-4.46 (-2.57%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners39.47%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.54B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (14.85%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.22%
Div Incr Years3
Div Non Decr Years14
Ex-Date
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)26.83%
PT rev (3m)28.98%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)2.21%
Revenue NQ rev (3m)4.54%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.96 | ||
| Fwd PE | 20.63 | ||
| P/S | 1.81 | ||
| P/FCF | N/A | ||
| P/OCF | 89.12 | ||
| P/B | 4.47 | ||
| P/tB | 4.86 | ||
| EV/EBITDA | 11.95 |
EPS(TTM)6.77
EY4.01%
EPS(NY)8.19
Fwd EY4.85%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.12%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.45
PEG (5Y)0.57
Graham Number75.85
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 7.09 |
F-Score2
WACC7.61%
ROIC/WACC2.54
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 Y10.2%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
EPS Next 5YN/A
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%
Revenue Next Year11.9%
Revenue Next 2Y12.99%
Revenue Next 3Y12.21%
Revenue Next 5YN/A
EBIT growth 1Y19.26%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year31.84%
EBIT Next 3Y17.31%
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 FAQ
Can you provide the ChartMill fundamental rating for HAMMOND POWER SOLUTIONS INC?
ChartMill assigns a fundamental rating of 7 / 10 to HPS-A.CA.
Can you provide the valuation status for HAMMOND POWER SOLUTIONS INC?
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.
Can you provide the financial health for HPS-A stock?
The financial health rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 5 / 10.
Is the dividend of HAMMOND POWER SOLUTIONS INC sustainable?
The dividend rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 6 / 10 and the dividend payout ratio is 16.22%.