HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - Toronto Stock Exchange - CA4085491039 - Common Stock - Currency: CAD
Overall HPS-A gets a fundamental rating of 8 out of 10. We evaluated HPS-A against 16 industry peers in the Electrical Equipment industry. HPS-A gets an excellent profitability rating and is at the same time showing great financial health properties. HPS-A is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make HPS-A suitable for value and quality investing!
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.
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
HPS-A's Return On Assets of 17.59% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A has a better Return On Equity (27.31%) than 100.00% of its industry peers.
HPS-A's Return On Invested Capital of 25.18% is amongst the best of the industry. HPS-A outperforms 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 13.76%.
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
The Profit Margin of HPS-A (11.24%) is better than 100.00% of its industry peers.
HPS-A's Profit Margin has improved in the last couple of years.
HPS-A's Operating Margin of 15.76% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Operating Margin has improved in the last couple of years.
The Gross Margin of HPS-A (32.70%) is better than 87.50% 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.
Compared to 1 year ago, HPS-A has about the same amount of shares outstanding.
Compared to 5 years ago, HPS-A has more shares outstanding
Compared to 1 year ago, HPS-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.20 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A has a better Altman-Z score (7.20) than 75.00% of its industry peers.
The Debt to FCF ratio of HPS-A is 3.49, which is a good value as it means it would take HPS-A, 3.49 years of fcf income to pay off all of its debts.
HPS-A has a Debt to FCF ratio of 3.49. This is amongst the best in the industry. HPS-A outperforms 93.75% of its industry peers.
HPS-A has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
HPS-A's Debt to Equity ratio of 0.13 is in line compared to the rest of the industry. HPS-A outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 7.2 |
ROIC/WACC3.3
WACC7.64%
2.3 Liquidity
A Current Ratio of 2.10 indicates that HPS-A has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.10, HPS-A is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that HPS-A should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.17, HPS-A perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.1 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.11% 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 9.52% in the last year.
The Revenue has been growing by 17.05% on average over the past years. This is quite good.
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
HPS-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.14% yearly.
The Revenue is expected to grow by 7.67% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
HPS-A is valuated correctly with a Price/Earnings ratio of 15.84.
Compared to the rest of the industry, the Price/Earnings ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.51, HPS-A is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.37, HPS-A is valued correctly.
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 68.75% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HPS-A to the average of the S&P500 Index (35.58), we can say HPS-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.84 | ||
| Fwd PE | 15.37 |
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.
93.75% of the companies in the same industry are more expensive than HPS-A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.16 | ||
| EV/EBITDA | 7.66 |
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.
The excellent profitability rating of HPS-A may justify a higher PE ratio.
PEG (NY)0.69
PEG (5Y)0.36
EPS Next 2Y13.71%
EPS Next 3Y9.14%
5. Dividend
5.1 Amount
With a yearly dividend of 0.86%, 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 0.72. HPS-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.86, HPS-A pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
5.2 History
The dividend of HPS-A is nicely growing with an annual growth rate of 28.23%!
HPS-A has paid a dividend for at least 10 years, which is 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
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 (7/14/2025, 7:00:00 PM)
119.46
+0.47 (+0.39%)
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 Cap1.09B
Analysts83.33
Price Target151.73 (27.01%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.17%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)2.54%
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 | 15.84 | ||
| Fwd PE | 15.37 | ||
| P/S | 1.36 | ||
| P/FCF | 76.16 | ||
| P/OCF | 19.67 | ||
| P/B | 3.32 | ||
| P/tB | 3.64 | ||
| EV/EBITDA | 7.66 |
EPS(TTM)7.54
EY6.31%
EPS(NY)7.77
Fwd EY6.51%
FCF(TTM)1.57
FCFY1.31%
OCF(TTM)6.07
OCFY5.08%
SpS87.52
BVpS36.02
TBVpS32.81
PEG (NY)0.69
PEG (5Y)0.36
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 | 7.2 |
F-Score5
WACC7.64%
ROIC/WACC3.3
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%