HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - CA4085491039 - Common Stock
118.32 CAD
-0.04 (-0.03%)
We assign a fundamental rating of 6 out of 10 to HPS-A. HPS-A was compared to 16 industry peers in the Electrical Equipment industry. While HPS-A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. HPS-A has a correct valuation and a medium growth rate.
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
HPS-A's Return On Assets of 15.13% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
The Return On Equity of HPS-A (24.38%) is better than 100.00% of its industry peers.
HPS-A has a better Return On Invested Capital (21.42%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HPS-A is significantly above the industry average of 13.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 24.38% | ||
| ROIC | 21.42% |
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
HPS-A has a Profit Margin of 9.63%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Profit Margin has improved in the last couple of years.
HPS-A has a Operating Margin of 13.37%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 32.11%, HPS-A belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of HPS-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.37% | ||
| PM (TTM) | 9.63% | ||
| GM | 32.11% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPS-A is creating value.
HPS-A has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, HPS-A has more shares outstanding
HPS-A has a better debt/assets ratio than last year.
2.2 Solvency
HPS-A has an Altman-Z score of 6.69. 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 6.69, HPS-A is doing good in the industry, outperforming 75.00% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that HPS-A is not too dependend on debt financing.
HPS-A has a Debt to Equity ratio (0.18) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.69 |
ROIC/WACC2.72
WACC7.88%
2.3 Liquidity
A Current Ratio of 1.95 indicates that HPS-A should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.95, HPS-A is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that HPS-A should not have too much problems paying its short term obligations.
HPS-A has a Quick ratio of 1.10. This is comparable to the rest of the industry: HPS-A outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.58% 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.
The Revenue has grown by 9.53% 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)20.58%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%-43.43%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.8%
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 9.59% yearly.
HPS-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.42% yearly.
EPS Next Y15.05%
EPS Next 2Y12.94%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year10.56%
Revenue Next 2Y8.04%
Revenue Next 3Y7.42%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 17.71, HPS-A is valued on the expensive side.
93.75% of the companies in the same industry are more expensive than HPS-A, based on the Price/Earnings ratio.
HPS-A's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.13.
Based on the Price/Forward Earnings ratio of 15.43, the valuation of HPS-A can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HPS-A indicates a somewhat cheap valuation: HPS-A is cheaper than 75.00% of the companies listed in the same industry.
HPS-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 15.43 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.49 |
4.3 Compensation for Growth
HPS-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HPS-A may justify a higher PE ratio.
PEG (NY)1.18
PEG (5Y)0.41
EPS Next 2Y12.94%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.93%, which is pretty low.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.79. HPS-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.93, HPS-A pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
5.2 History
On average, the dividend of HPS-A grows each year by 28.23%, which is quite nice.
HPS-A has paid a dividend for at least 10 years, which is 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
16.45% 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.
DP16.45%
EPS Next 2Y12.94%
EPS Next 3Y9.59%
TSX:HPS-A (8/29/2025, 7:00:00 PM)
118.32
-0.04 (-0.03%)
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 Cap1.08B
Analysts83.33
Price Target150.45 (27.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.93% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.45%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.89%
Min EPS beat(2)-36.04%
Max EPS beat(2)6.26%
EPS beat(4)2
Avg EPS beat(4)-8.57%
Min EPS beat(4)-36.04%
Max EPS beat(4)8.54%
EPS beat(8)5
Avg EPS beat(8)-5.11%
EPS beat(12)8
Avg EPS beat(12)15.53%
EPS beat(16)12
Avg EPS beat(16)19%
Revenue beat(2)1
Avg Revenue beat(2)-3.57%
Min Revenue beat(2)-8.22%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.33%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.95%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)3.21%
PT rev (1m)-0.51%
PT rev (3m)-0.84%
EPS NQ rev (1m)-4.57%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.71 | ||
| Fwd PE | 15.43 | ||
| P/S | 1.31 | ||
| P/FCF | N/A | ||
| P/OCF | 29.32 | ||
| P/B | 3.31 | ||
| P/tB | 3.62 | ||
| EV/EBITDA | 8.49 |
EPS(TTM)6.68
EY5.65%
EPS(NY)7.67
Fwd EY6.48%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.04
OCFY3.41%
SpS90.5
BVpS35.75
TBVpS32.71
PEG (NY)1.18
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 24.38% | ||
| ROCE | 32.14% | ||
| ROIC | 21.42% | ||
| ROICexc | 23.09% | ||
| ROICexgc | 25.04% | ||
| OM | 13.37% | ||
| PM (TTM) | 9.63% | ||
| GM | 32.11% | ||
| 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
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-Score2
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 266.7% | ||
| Cap/Sales | 5.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 6.69 |
F-Score2
WACC7.88%
ROIC/WACC2.72
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)20.58%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%-43.43%
EPS Next Y15.05%
EPS Next 2Y12.94%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue 1Y (TTM)9.53%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.8%
Revenue Next Year10.56%
Revenue Next 2Y8.04%
Revenue Next 3Y7.42%
Revenue Next 5YN/A
EBIT growth 1Y22.06%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year44.52%
EBIT Next 3Y15.28%
EBIT Next 5YN/A
FCF growth 1Y-142.18%
FCF growth 3Y18%
FCF growth 5Y11.75%
OCF growth 1Y36.08%
OCF growth 3Y46.24%
OCF growth 5Y29.45%