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

TSX:HPS-A • CA4085491039

210.89 CAD
+9.75 (+4.85%)
Last: Feb 13, 2026, 07:00 PM
Fundamental Rating

7

HPS-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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!


Dividend Valuation Growth Profitability Health

9

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.
  • In the past 5 years HPS-A has always been profitable.
  • In the past 5 years HPS-A always reported a positive cash flow from operatings.
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

  • HPS-A's Return On Assets of 13.83% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
  • The Return On Equity of HPS-A (23.41%) is better than 100.00% of its industry peers.
  • HPS-A has a better Return On Invested Capital (19.32%) than 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 12.87%.
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

  • The Profit Margin of HPS-A (9.47%) is better than 100.00% of its industry peers.
  • HPS-A's Profit Margin has improved in the last couple of years.
  • HPS-A has a better Operating Margin (13.11%) than 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.
  • 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

5

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPS-A is creating value.
  • Compared to 1 year ago, HPS-A has about the same amount of shares outstanding.
  • The number of shares outstanding for HPS-A has been increased compared to 5 years ago.
  • The debt/assets ratio for HPS-A has been reduced compared to a year ago.
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

  • HPS-A has an Altman-Z score of 8.05. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
  • HPS-A's Altman-Z score of 8.05 is fine compared to the rest of the industry. HPS-A outperforms 64.29% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.25
Debt/FCF N/A
Altman-Z 8.05
ROIC/WACC2.45
WACC7.9%
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.
  • The Current ratio of HPS-A (1.84) is better than 64.29% of 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 42.86% 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

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 18.77% over the past year.
  • 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 11.19% 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)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.
  • The Revenue is expected to grow by 12.21% on average over the next years. This is quite good.
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

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 200M 400M 600M 800M 1B
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

4

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.15, which means the current valuation is very expensive for HPS-A.
  • Compared to the rest of the industry, the Price/Earnings ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 92.86% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.68, HPS-A is valued at the same level.
  • A Price/Forward Earnings ratio of 25.74 indicates a quite expensive valuation of HPS-A.
  • Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. HPS-A is around the same levels.
Industry RankSector Rank
PE 31.15
Fwd PE 25.74
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

  • Based on the Enterprise Value to EBITDA ratio, HPS-A is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.94
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 an expensive valuation of the company.
  • The excellent profitability rating of HPS-A 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)3.05
PEG (5Y)0.71
EPS Next 2Y16.75%
EPS Next 3Y16.16%

6

5. Dividend

5.1 Amount

  • HPS-A has a yearly dividend return of 0.55%, 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 92.86% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.84, HPS-A's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.55%

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 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.
  • 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%
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

HAMMOND POWER SOLUTIONS INC

TSX:HPS-A (2/13/2026, 7:00:00 PM)

210.89

+9.75 (+4.85%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)10-23
Earnings (Next)03-11
Inst Owners46.53%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.93B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (-7.98%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.55%
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.22%
Div Incr Years3
Div Non Decr Years14
Ex-DateN/A
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)0%
PT rev (3m)6.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 31.15
Fwd PE 25.74
P/S 2.26
P/FCF N/A
P/OCF 111.23
P/B 5.58
P/tB 6.07
EV/EBITDA 14.94
EPS(TTM)6.77
EY3.21%
EPS(NY)8.19
Fwd EY3.88%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY0.9%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)3.05
PEG (5Y)0.71
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 8.05
F-Score2
WACC7.9%
ROIC/WACC2.45
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 Year30.93%
EBIT Next 3Y22.74%
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

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 31.15 and the Price/Book (PB) ratio is 5.58.


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 10.2% in the next year.