HAMMOND MANUFACTURING -CL A (HMM-A.CA) Stock Fundamental Analysis
TSX:HMM-A - Toronto Stock Exchange - CA40851T1021 - Common Stock - Currency: CAD
Overall HMM-A gets a fundamental rating of 7 out of 10. We evaluated HMM-A against 14 industry peers in the Electrical Equipment industry. HMM-A gets an excellent profitability rating and is at the same time showing great financial health properties. HMM-A is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
HMM-A had positive earnings in the past year.
In the past year HMM-A had a positive cash flow from operations.
HMM-A had positive earnings in each of the past 5 years.
In the past 5 years HMM-A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.95%, HMM-A belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
HMM-A's Return On Equity of 16.55% is amongst the best of the industry. HMM-A outperforms 92.31% of its industry peers.
With an excellent Return On Invested Capital value of 15.13%, HMM-A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HMM-A is in line with the industry average of 14.60%.
The last Return On Invested Capital (15.13%) for HMM-A is above the 3 year average (12.78%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.95% | ||
| ROE | 16.55% | ||
| ROIC | 15.13% |
ROA(3y)7.56%
ROA(5y)6.66%
ROE(3y)14.96%
ROE(5y)13.2%
ROIC(3y)12.78%
ROIC(5y)10.88%
1.3 Margins
HMM-A's Profit Margin of 7.75% is amongst the best of the industry. HMM-A outperforms 92.31% of its industry peers.
HMM-A's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.62%, HMM-A belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of HMM-A has grown nicely.
The Gross Margin of HMM-A (37.29%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of HMM-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.62% | ||
| PM (TTM) | 7.75% | ||
| GM | 37.29% |
OM growth 3Y22.76%
OM growth 5Y17.28%
PM growth 3Y14.86%
PM growth 5Y24.71%
GM growth 3Y4.27%
GM growth 5Y3.95%
2. Health
2.1 Basic Checks
HMM-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HMM-A has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HMM-A has been increased compared to 5 years ago.
HMM-A has a worse debt/assets ratio than last year.
2.2 Solvency
HMM-A has an Altman-Z score of 3.09. This indicates that HMM-A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HMM-A (3.09) is better than 61.54% of its industry peers.
The Debt to FCF ratio of HMM-A is 2.52, which is a good value as it means it would take HMM-A, 2.52 years of fcf income to pay off all of its debts.
HMM-A's Debt to FCF ratio of 2.52 is amongst the best of the industry. HMM-A outperforms 92.31% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that HMM-A is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.15, HMM-A is in line with its industry, outperforming 46.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.52 | ||
| Altman-Z | 3.09 |
ROIC/WACC2.34
WACC6.47%
2.3 Liquidity
A Current Ratio of 1.74 indicates that HMM-A should not have too much problems paying its short term obligations.
HMM-A has a Current ratio of 1.74. This is in the better half of the industry: HMM-A outperforms 69.23% of its industry peers.
A Quick Ratio of 0.81 indicates that HMM-A may have some problems paying its short term obligations.
The Quick ratio of HMM-A (0.81) is comparable to the rest of the industry.
HMM-A does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for HMM-A have decreased by -0.27% in the last year.
The Earnings Per Share has been growing by 38.06% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.10% in the past year.
The Revenue has been growing by 10.35% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.27%
EPS 3Y34.52%
EPS 5Y38.06%
EPS Q2Q%10.11%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y17.15%
Revenue growth 5Y10.35%
Sales Q2Q%8.87%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 5.95, which indicates a rather cheap valuation of HMM-A.
100.00% of the companies in the same industry are more expensive than HMM-A, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.62, HMM-A is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HMM-A is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HMM-A is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.69 | ||
| EV/EBITDA | 3.21 |
4.3 Compensation for Growth
HMM-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.16
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
HMM-A has a yearly dividend return of 0.59%, which is pretty low.
HMM-A's Dividend Yield is rather good when compared to the industry average which is at 0.91. HMM-A pays more dividend than 92.31% of the companies in the same industry.
With a Dividend Yield of 0.59, HMM-A pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of HMM-A grows each year by 8.56%, which is quite nice.
HMM-A has been paying a dividend for over 5 years, so it has already some track record.
HMM-A has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
HMM-A pays out 3.65% of its income as dividend. This is a sustainable payout ratio.
HMM-A's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP3.65%
EPS Next 2YN/A
EPS Next 3YN/A
TSX:HMM-A (2/21/2025, 7:00:00 PM)
9.75
-0.35 (-3.47%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners0.34%
Inst Owner ChangeN/A
Ins Owners10.24%
Ins Owner ChangeN/A
Market Cap83.46M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.06
Dividend Growth(5Y)8.56%
DP3.65%
Div Incr Years0
Div Non Decr Years7
Ex-DateN/A
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)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.95 | ||
| Fwd PE | N/A | ||
| P/S | 0.35 | ||
| P/FCF | 3.69 | ||
| P/OCF | 2.61 | ||
| P/B | 0.74 | ||
| P/tB | 0.74 | ||
| EV/EBITDA | 3.21 |
EPS(TTM)1.64
EY16.82%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)2.64
FCFY27.13%
OCF(TTM)3.74
OCFY38.37%
SpS28.09
BVpS13.16
TBVpS13.12
PEG (NY)N/A
PEG (5Y)0.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.95% | ||
| ROE | 16.55% | ||
| ROCE | 20.3% | ||
| ROIC | 15.13% | ||
| ROICexc | 17.66% | ||
| ROICexgc | 17.71% | ||
| OM | 11.62% | ||
| PM (TTM) | 7.75% | ||
| GM | 37.29% | ||
| FCFM | 9.41% |
ROA(3y)7.56%
ROA(5y)6.66%
ROE(3y)14.96%
ROE(5y)13.2%
ROIC(3y)12.78%
ROIC(5y)10.88%
ROICexc(3y)13.39%
ROICexc(5y)11.32%
ROICexgc(3y)13.44%
ROICexgc(5y)11.37%
ROCE(3y)17.88%
ROCE(5y)15.22%
ROICexcg growth 3Y28.25%
ROICexcg growth 5Y16.06%
ROICexc growth 3Y28.26%
ROICexc growth 5Y16.09%
OM growth 3Y22.76%
OM growth 5Y17.28%
PM growth 3Y14.86%
PM growth 5Y24.71%
GM growth 3Y4.27%
GM growth 5Y3.95%
F-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.52 | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 99.98% | ||
| Cap/Sales | 3.9% | ||
| Interest Coverage | 9.68 | ||
| Cash Conversion | 85.8% | ||
| Profit Quality | 121.47% | ||
| Current Ratio | 1.74 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 3.09 |
F-Score6
WACC6.47%
ROIC/WACC2.34
Cap/Depr(3y)200.2%
Cap/Depr(5y)147.3%
Cap/Sales(3y)6.94%
Cap/Sales(5y)5.31%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.27%
EPS 3Y34.52%
EPS 5Y38.06%
EPS Q2Q%10.11%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)1.1%
Revenue growth 3Y17.15%
Revenue growth 5Y10.35%
Sales Q2Q%8.87%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y0.99%
EBIT growth 3Y43.81%
EBIT growth 5Y29.42%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y281.98%
FCF growth 3Y-32.37%
FCF growth 5YN/A
OCF growth 1Y940.69%
OCF growth 3Y2.5%
OCF growth 5Y65.76%