HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - TSX:HPS-A - CA4085491039 - Common Stock
116.98 CAD
+0.64 (+0.55%)
HPS-A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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 decent growth rate and is not valued too expensively.
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.
HPS-A had positive earnings in each of the past 5 years.
HPS-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HPS-A (15.13%) is better than 100.00% of its industry peers.
The Return On Equity of HPS-A (24.38%) is better than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 21.42%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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 better Profit Margin (9.63%) than 100.00% of its industry peers.
HPS-A's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 13.37%, 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's Gross Margin of 32.11% is amongst the best of the industry. HPS-A outperforms 87.50% of its industry peers.
HPS-A's Gross Margin has improved in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPS-A is creating value.
HPS-A has about the same amout of shares outstanding than it did 1 year ago.
HPS-A has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HPS-A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.64 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A's Altman-Z score of 6.64 is fine compared to the rest of the industry. HPS-A outperforms 75.00% of its industry peers.
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 | 6.64 |
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.
With a Current ratio value of 1.95, HPS-A perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
HPS-A has a Quick Ratio of 1.10. This is a normal value and indicates that HPS-A is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.10, HPS-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.1 |
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 20.58%, which is quite impressive.
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 9.53%.
HPS-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.05% yearly.
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.
Based on estimates for the next years, HPS-A will show a small growth in Revenue. The Revenue will grow by 7.85% on average per year.
EPS Next Y15.05%
EPS Next 2Y12.94%
EPS Next 3Y9.59%
EPS Next 5YN/A
Revenue Next Year10.82%
Revenue Next 2Y10.02%
Revenue Next 3Y7.85%
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
The Price/Earnings ratio is 17.51, which indicates a rather expensive current valuation of HPS-A.
Based on the Price/Earnings ratio, HPS-A is valued cheaper than 93.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.41. HPS-A is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.26, which indicates a correct valuation of HPS-A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 81.25% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, HPS-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPS-A is valued cheaper than 93.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.34 |
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)1.16
PEG (5Y)0.4
EPS Next 2Y12.94%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
With a yearly dividend of 0.98%, 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 0.80. 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 2.38.
| 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 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
16.45% 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.
DP16.45%
EPS Next 2Y12.94%
EPS Next 3Y9.59%
TSX:HPS-A (9/18/2025, 7:00:00 PM)
116.98
+0.64 (+0.55%)
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 Cap1.07B
Analysts83.33
Price Target153 (30.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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)1.69%
PT rev (3m)0.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-6.47%
EPS NY rev (3m)-6.47%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.53%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.26 | ||
| P/S | 1.29 | ||
| P/FCF | N/A | ||
| P/OCF | 28.99 | ||
| P/B | 3.27 | ||
| P/tB | 3.58 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)6.68
EY5.71%
EPS(NY)7.67
Fwd EY6.55%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.04
OCFY3.45%
SpS90.5
BVpS35.75
TBVpS32.71
PEG (NY)1.16
PEG (5Y)0.4
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 | 6.64 |
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 Year10.82%
Revenue Next 2Y10.02%
Revenue Next 3Y7.85%
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%