HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - Toronto Stock Exchange - CA4085491039 - Common Stock - Currency: CAD
HPS-A gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 14 industry peers in the Electrical Equipment industry. HPS-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on HPS-A. With these ratings, HPS-A could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year HPS-A was profitable.
In the past year HPS-A had a positive cash flow from operations.
In the past 5 years HPS-A has always been profitable.
Each year in the past 5 years HPS-A had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 17.59%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HPS-A's Return On Equity of 27.31% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A has a Return On Invested Capital of 25.18%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
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 14.27%.
The 3 year average ROIC (23.25%) for HPS-A is below the current ROIC(25.18%), indicating increased profibility in the last year.
| 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
HPS-A's Profit Margin of 11.24% is amongst the best of 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 15.76%. 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.
HPS-A has a Gross Margin of 32.70%. This is amongst the best in 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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPS-A is creating value.
The number of shares outstanding for HPS-A remains at a similar level compared to 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
HPS-A has an Altman-Z score of 6.55. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
HPS-A has a better Altman-Z score (6.55) than 78.57% 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.
HPS-A's Debt to FCF ratio of 3.49 is amongst the best of the industry. HPS-A outperforms 92.86% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that HPS-A is not too dependend on debt financing.
HPS-A has a Debt to Equity ratio (0.13) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 6.55 |
ROIC/WACC3.37
WACC7.48%
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.
HPS-A has a better Current ratio (2.10) than 78.57% 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.
Looking at the Quick ratio, with a value of 1.17, HPS-A is in line with its industry, outperforming 42.86% of the companies in the same 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 12.76%, which is quite good.
The Earnings Per Share has been growing by 43.72% on average over the past years. This is a very strong growth
The Revenue has grown by 9.52% in the past year. This is quite good.
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)12.76%
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
The Earnings Per Share is expected to grow by 9.14% on average over the next years. This is quite good.
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.
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
Based on the Price/Earnings ratio of 16.30, the valuation of HPS-A can be described as correct.
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.
The average S&P500 Price/Earnings ratio is at 26.03. HPS-A is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 12.61 indicates a correct valuation of HPS-A.
Based on the Price/Forward Earnings ratio, HPS-A is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
HPS-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 12.61 |
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 92.86% of the companies listed in the same industry.
HPS-A's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HPS-A is cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.45 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
HPS-A's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of HPS-A may justify a higher PE ratio.
PEG (NY)0.71
PEG (5Y)0.37
EPS Next 2Y13.71%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, HPS-A has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.87, HPS-A pays a better dividend. On top of this HPS-A pays more dividend than 100.00% of the companies listed in the same industry.
With a Dividend Yield of 1.10, HPS-A pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of HPS-A is nicely growing with an annual growth rate of 28.23%!
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
HPS-A pays out 14.58% 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.
DP14.58%
EPS Next 2Y13.71%
EPS Next 3Y9.14%
TSX:HPS-A (5/21/2025, 7:00:00 PM)
97.96
-3.79 (-3.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners47.12%
Inst Owner ChangeN/A
Ins Owners2.49%
Ins Owner ChangeN/A
Market Cap894.37M
Analysts83.33
Price Target151.73 (54.89%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP14.58%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-0.17%
PT rev (3m)-10.21%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0.9%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-0.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.3 | ||
| Fwd PE | 12.61 | ||
| P/S | 1.12 | ||
| P/FCF | 62.45 | ||
| P/OCF | 16.13 | ||
| P/B | 2.72 | ||
| P/tB | 2.99 | ||
| EV/EBITDA | 6.27 |
EPS(TTM)6.01
EY6.14%
EPS(NY)7.77
Fwd EY7.93%
FCF(TTM)1.57
FCFY1.6%
OCF(TTM)6.07
OCFY6.2%
SpS87.52
BVpS36.02
TBVpS32.81
PEG (NY)0.71
PEG (5Y)0.37
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 | 6.55 |
F-Score5
WACC7.48%
ROIC/WACC3.37
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)12.76%
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 Year45.73%
EBIT Next 3Y15.86%
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%