HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - Toronto Stock Exchange - CA4085491039 - Common Stock - Currency: CAD
We assign a fundamental rating of 8 out of 10 to HPS-A. HPS-A was compared to 5 industry peers in the Electrical Equipment industry. HPS-A has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. HPS-A scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make HPS-A a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
HPS-A had positive earnings in the past year.
HPS-A had a positive operating cash flow in the past year.
In the past 5 years HPS-A has always been profitable.
HPS-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HPS-A has a Return On Assets of 17.59%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 27.31%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 25.18%, 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 10.61%.
The last Return On Invested Capital (25.18%) for HPS-A is above the 3 year average (23.25%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 27.31% | ||
| ROIC | 25.18% |
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 (11.24%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of HPS-A has grown nicely.
Looking at the Operating Margin, with a value of 15.76%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HPS-A's Operating Margin has improved in the last couple of years.
HPS-A has a Gross Margin of 32.70%. This is amongst the best in the industry. HPS-A outperforms 93.33% of its industry peers.
HPS-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.76% | ||
| PM (TTM) | 11.24% | ||
| GM | 32.7% |
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.
Compared to 1 year ago, HPS-A has about the same amount of shares outstanding.
HPS-A has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HPS-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.02 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A has a better Altman-Z score (7.02) than 73.33% of its industry peers.
HPS-A has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as HPS-A would need 3.49 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.49, HPS-A belongs to the best of the industry, outperforming 93.33% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that HPS-A is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.13, HPS-A is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 7.02 |
ROIC/WACC2.9
WACC8.67%
2.3 Liquidity
HPS-A has a Current Ratio of 2.10. This indicates that HPS-A is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HPS-A (2.10) is better than 66.67% of its industry peers.
HPS-A has a Quick Ratio of 1.17. 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 Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.17 |
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 61.11%, which is quite impressive.
The Earnings Per Share has been growing by 43.72% on average over the past years. This is a very strong growth
Looking at the last year, HPS-A shows a quite strong growth in Revenue. The Revenue has grown by 9.52% in the last year.
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)61.11%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%228.36%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%5.62%
3.2 Future
Based on estimates for the next years, HPS-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
Based on estimates for the next years, HPS-A will show a small growth in Revenue. The Revenue will grow by 7.67% on average per year.
EPS Next Y23.01%
EPS Next 2Y13.71%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue Next Year10.39%
Revenue Next 2Y8.33%
Revenue Next 3Y7.67%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.96, HPS-A is valued correctly.
Based on the Price/Earnings ratio, HPS-A is valued cheaply inside the industry as 93.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of HPS-A to the average of the S&P500 Index (26.34), we can say HPS-A is valued slightly cheaper.
The Price/Forward Earnings ratio is 14.51, which indicates a correct valuation of HPS-A.
Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 73.33% of the companies in the same industry.
HPS-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.19.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 14.51 |
4.2 Price Multiples
93.33% of the companies in the same industry are more expensive than HPS-A, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 71.91 | ||
| EV/EBITDA | 7.28 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HPS-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.65
PEG (5Y)0.34
EPS Next 2Y13.71%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.98%, which is pretty low.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 1.70. HPS-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.98, HPS-A pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)28.23%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
14.58% of the earnings are spent on dividend by HPS-A. This is a low number and sustainable payout ratio.
HPS-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP14.58%
EPS Next 2Y13.71%
EPS Next 3Y9.14%
TSX:HPS-A (6/18/2025, 7:00:00 PM)
112.8
-0.7 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners37.97%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.03B
Analysts83.33
Price Target151.73 (34.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP14.58%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.4%
Min EPS beat(2)6.26%
Max EPS beat(2)8.54%
EPS beat(4)3
Avg EPS beat(4)2.74%
Min EPS beat(4)-13.07%
Max EPS beat(4)9.22%
EPS beat(8)5
Avg EPS beat(8)-1.14%
EPS beat(12)9
Avg EPS beat(12)19.94%
EPS beat(16)13
Avg EPS beat(16)31.74%
Revenue beat(2)0
Avg Revenue beat(2)-4.37%
Min Revenue beat(2)-8.22%
Max Revenue beat(2)-0.51%
Revenue beat(4)1
Avg Revenue beat(4)-3.54%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)0.26%
Revenue beat(8)3
Avg Revenue beat(8)-2.04%
Revenue beat(12)6
Avg Revenue beat(12)1.35%
Revenue beat(16)10
Avg Revenue beat(16)3.46%
PT rev (1m)0%
PT rev (3m)-9.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.96 | ||
| Fwd PE | 14.51 | ||
| P/S | 1.29 | ||
| P/FCF | 71.91 | ||
| P/OCF | 18.57 | ||
| P/B | 3.13 | ||
| P/tB | 3.44 | ||
| EV/EBITDA | 7.28 |
EPS(TTM)7.54
EY6.68%
EPS(NY)7.77
Fwd EY6.89%
FCF(TTM)1.57
FCFY1.39%
OCF(TTM)6.07
OCFY5.38%
SpS87.52
BVpS36.02
TBVpS32.81
PEG (NY)0.65
PEG (5Y)0.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.59% | ||
| ROE | 27.31% | ||
| ROCE | 36.47% | ||
| ROIC | 25.18% | ||
| ROICexc | 27.61% | ||
| ROICexgc | 30.21% | ||
| OM | 15.76% | ||
| PM (TTM) | 11.24% | ||
| GM | 32.7% | ||
| FCFM | 1.79% |
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
ROICexcg growth 3Y25.72%
ROICexcg 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-Score5
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 0.31 | ||
| Cap/Depr | 273.74% | ||
| Cap/Sales | 5.15% | ||
| Interest Coverage | 192.23 | ||
| Cash Conversion | 39.35% | ||
| Profit Quality | 15.95% | ||
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 7.02 |
F-Score5
WACC8.67%
ROIC/WACC2.9
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)61.11%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%228.36%
EPS Next Y23.01%
EPS Next 2Y13.71%
EPS Next 3Y9.14%
EPS Next 5YN/A
Revenue 1Y (TTM)9.52%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%5.62%
Revenue Next Year10.39%
Revenue Next 2Y8.33%
Revenue Next 3Y7.67%
Revenue Next 5YN/A
EBIT growth 1Y69.24%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year44.52%
EBIT Next 3Y15.28%
EBIT Next 5YN/A
FCF growth 1Y-26.87%
FCF growth 3Y18%
FCF growth 5Y11.75%
OCF growth 1Y88.61%
OCF growth 3Y46.24%
OCF growth 5Y29.45%