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HAMMOND MANUFACTURING -CL A (HMM-A.CA) Stock Fundamental Analysis

TSX:HMM-A - Toronto Stock Exchange - CA40851T1021 - Common Stock - Currency: CAD

10.4  +0.25 (+2.46%)

Fundamental Rating

7

Overall HMM-A gets a fundamental rating of 7 out of 10. We evaluated HMM-A against 16 industry peers in the Electrical Equipment industry. Both the health and profitability get an excellent rating, making HMM-A a very profitable company, without any liquidiy or solvency issues. HMM-A has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

In the past year HMM-A was profitable.
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.
HMM-A.CA Yearly Net Income VS EBIT VS OCF VS FCFHMM-A.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M 30M

1.2 Ratios

The Return On Assets of HMM-A (8.54%) is better than 93.75% of its industry peers.
With an excellent Return On Equity value of 15.06%, HMM-A belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.08%, HMM-A belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
HMM-A had an Average Return On Invested Capital over the past 3 years of 14.52%. This is in line with the industry average of 13.76%.
Industry RankSector Rank
ROA 8.54%
ROE 15.06%
ROIC 14.08%
ROA(3y)8.53%
ROA(5y)7.52%
ROE(3y)16.35%
ROE(5y)14.55%
ROIC(3y)14.52%
ROIC(5y)12.21%
HMM-A.CA Yearly ROA, ROE, ROICHMM-A.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

HMM-A has a Profit Margin of 7.37%. This is amongst the best in the industry. HMM-A outperforms 93.75% of its industry peers.
HMM-A's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 11.02%, HMM-A belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
In the last couple of years the Operating Margin of HMM-A has grown nicely.
With an excellent Gross Margin value of 36.97%, HMM-A belongs to the best of the industry, outperforming 93.75% of the companies in the same industry.
HMM-A's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 11.02%
PM (TTM) 7.37%
GM 36.97%
OM growth 3Y24.34%
OM growth 5Y17.44%
PM growth 3Y22.81%
PM growth 5Y18.86%
GM growth 3Y8.33%
GM growth 5Y3.92%
HMM-A.CA Yearly Profit, Operating, Gross MarginsHMM-A.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

7

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 better debt/assets ratio than last year.
HMM-A.CA Yearly Shares OutstandingHMM-A.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2M 4M 6M 8M 10M
HMM-A.CA Yearly Total Debt VS Total AssetsHMM-A.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

2.2 Solvency

HMM-A has an Altman-Z score of 3.17. This indicates that HMM-A is financially healthy and has little risk of bankruptcy at the moment.
HMM-A has a better Altman-Z score (3.17) than 62.50% of its industry peers.
HMM-A has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as HMM-A would need 2.29 years to pay back of all of its debts.
HMM-A has a better Debt to FCF ratio (2.29) than 100.00% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that HMM-A is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.13, HMM-A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.29
Altman-Z 3.17
ROIC/WACC2.14
WACC6.59%
HMM-A.CA Yearly LT Debt VS Equity VS FCFHMM-A.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 1.88 indicates that HMM-A should not have too much problems paying its short term obligations.
The Current ratio of HMM-A (1.88) is comparable to the rest of the industry.
A Quick Ratio of 0.93 indicates that HMM-A may have some problems paying its short term obligations.
HMM-A has a Quick ratio of 0.93. This is in the lower half of the industry: HMM-A underperforms 62.50% of its industry peers.
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 RankSector Rank
Current Ratio 1.88
Quick Ratio 0.93
HMM-A.CA Yearly Current Assets VS Current LiabilitesHMM-A.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

3

3. Growth

3.1 Past

HMM-A shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.21%.
HMM-A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 31.01% yearly.
Looking at the last year, HMM-A shows a small growth in Revenue. The Revenue has grown by 7.70% in the last year.
The Revenue has been growing by 10.51% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.21%
EPS 3Y33.62%
EPS 5Y31.01%
EPS Q2Q%6.03%
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.8%
Revenue growth 5Y10.51%
Sales Q2Q%13.66%

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.
HMM-A.CA Yearly Revenue VS EstimatesHMM-A.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 6.34, the valuation of HMM-A can be described as very cheap.
Based on the Price/Earnings ratio, HMM-A is valued cheaper than 100.00% of the companies in the same industry.
HMM-A is valuated cheaply when we compare the Price/Earnings ratio to 27.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 6.34
Fwd PE N/A
HMM-A.CA Price Earnings VS Forward Price EarningsHMM-A.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HMM-A is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HMM-A is valued cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 3.68
EV/EBITDA 3.04
HMM-A.CA Per share dataHMM-A.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

The excellent profitability rating of HMM-A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.2
EPS Next 2YN/A
EPS Next 3YN/A

6

5. Dividend

5.1 Amount

With a yearly dividend of 0.58%, HMM-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.72, HMM-A pays a better dividend. On top of this HMM-A pays more dividend than 93.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, HMM-A's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.58%

5.2 History

The dividend of HMM-A is nicely growing with an annual growth rate of 8.56%!
HMM-A has been paying a dividend for at least 10 years, so it has a reliable track record.
As HMM-A did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)8.56%
Div Incr Years0
Div Non Decr Years7
HMM-A.CA Yearly Dividends per shareHMM-A.CA Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.01 0.02 0.03 0.04 0.05

5.3 Sustainability

HMM-A pays out 3.65% of its income as dividend. This is a sustainable payout ratio.
The dividend of HMM-A is growing, but earnings are growing more, so the dividend growth is sustainable.
DP3.65%
EPS Next 2YN/A
EPS Next 3YN/A
HMM-A.CA Yearly Income VS Free CF VS DividendHMM-A.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10M -10M 20M
HMM-A.CA Dividend Payout.HMM-A.CA Dividend Payout, showing the Payout Ratio.HMM-A.CA Dividend Payout.PayoutRetained Earnings

HAMMOND MANUFACTURING -CL A

TSX:HMM-A (7/14/2025, 7:00:00 PM)

10.4

+0.25 (+2.46%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)04-29 2025-04-29
Earnings (Next)07-28 2025-07-28
Inst Owners0.36%
Inst Owner ChangeN/A
Ins Owners20.16%
Ins Owner ChangeN/A
Market Cap89.02M
Analysts0
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.58%
Yearly Dividend0.06
Dividend Growth(5Y)8.56%
DP3.65%
Div Incr Years0
Div Non Decr Years7
Ex-Date03-14 2025-03-14 (0.03)
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 RankSector Rank
PE 6.34
Fwd PE N/A
P/S 0.35
P/FCF 3.68
P/OCF 2.53
P/B 0.72
P/tB 0.72
EV/EBITDA 3.04
EPS(TTM)1.64
EY15.77%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)2.83
FCFY27.16%
OCF(TTM)4.11
OCFY39.53%
SpS29.55
BVpS14.46
TBVpS14.42
PEG (NY)N/A
PEG (5Y)0.2
Profitability
Industry RankSector Rank
ROA 8.54%
ROE 15.06%
ROCE 18.81%
ROIC 14.08%
ROICexc 17.41%
ROICexgc 17.46%
OM 11.02%
PM (TTM) 7.37%
GM 36.97%
FCFM 9.56%
ROA(3y)8.53%
ROA(5y)7.52%
ROE(3y)16.35%
ROE(5y)14.55%
ROIC(3y)14.52%
ROIC(5y)12.21%
ROICexc(3y)15.98%
ROICexc(5y)13.22%
ROICexgc(3y)16.03%
ROICexgc(5y)13.27%
ROCE(3y)20.16%
ROCE(5y)16.86%
ROICexcg growth 3Y21.9%
ROICexcg growth 5Y17.29%
ROICexc growth 3Y21.97%
ROICexc growth 5Y17.31%
OM growth 3Y24.34%
OM growth 5Y17.44%
PM growth 3Y22.81%
PM growth 5Y18.86%
GM growth 3Y8.33%
GM growth 5Y3.92%
F-Score5
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity 0.13
Debt/FCF 2.29
Debt/EBITDA 0.43
Cap/Depr 108.48%
Cap/Sales 4.35%
Interest Coverage 7.87
Cash Conversion 92.55%
Profit Quality 129.72%
Current Ratio 1.88
Quick Ratio 0.93
Altman-Z 3.17
F-Score5
WACC6.59%
ROIC/WACC2.14
Cap/Depr(3y)184.34%
Cap/Depr(5y)162.13%
Cap/Sales(3y)6.55%
Cap/Sales(5y)5.9%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.21%
EPS 3Y33.62%
EPS 5Y31.01%
EPS Q2Q%6.03%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.7%
Revenue growth 3Y8.8%
Revenue growth 5Y10.51%
Sales Q2Q%13.66%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-2.46%
EBIT growth 3Y35.29%
EBIT growth 5Y29.78%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y240.67%
FCF growth 3Y86.02%
FCF growth 5Y19.8%
OCF growth 1Y652.89%
OCF growth 3Y31.15%
OCF growth 5Y23.52%