HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - TSX:HPS-A - CA4085491039 - Common Stock
114.08 CAD
+1.06 (+0.94%)
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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HPS-A was profitable.
HPS-A had a positive operating cash flow in the past year.
Each year in the past 5 years HPS-A has been profitable.
HPS-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HPS-A has a Return On Assets of 15.13%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A has a Return On Equity of 24.38%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A has a Return On Invested Capital of 21.42%. 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 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 Profit Margin of 9.63%. This is amongst the best in 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's Operating Margin of 13.37% 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.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
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 6.58. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HPS-A (6.58) is better than 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 comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.58 |
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.
Looking at the Current ratio, with a value of 1.95, HPS-A is in line with its industry, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 1.10 indicates that HPS-A should not have too much problems paying its short term obligations.
The Quick ratio of HPS-A (1.10) is comparable to the rest of the 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.
HPS-A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.72% yearly.
The Revenue has grown by 9.53% in the past year. This is quite good.
The Revenue has been growing by 17.05% on average over the past years. This is quite good.
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.
HPS-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
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
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
A Price/Earnings ratio of 17.08 indicates a rather expensive valuation of HPS-A.
HPS-A's Price/Earnings ratio is rather cheap when compared to the industry. HPS-A is cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.27, HPS-A is valued a bit cheaper.
HPS-A is valuated correctly with a Price/Forward Earnings ratio of 14.88.
Based on the Price/Forward Earnings ratio, HPS-A is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, HPS-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.08 | ||
| Fwd PE | 14.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPS-A is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HPS-A has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.13
PEG (5Y)0.39
EPS Next 2Y12.94%
EPS Next 3Y9.59%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.98%, which is pretty low.
Compared to an average industry Dividend Yield of 0.80, 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.
Compared to an average S&P500 Dividend Yield of 2.38, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
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 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
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 (9/15/2025, 7:00:00 PM)
114.08
+1.06 (+0.94%)
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 Cap1.04B
Analysts83.33
Price Target153 (34.12%)
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 | 17.08 | ||
| Fwd PE | 14.88 | ||
| P/S | 1.26 | ||
| P/FCF | N/A | ||
| P/OCF | 28.27 | ||
| P/B | 3.19 | ||
| P/tB | 3.49 | ||
| EV/EBITDA | 8.18 |
EPS(TTM)6.68
EY5.86%
EPS(NY)7.67
Fwd EY6.72%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.04
OCFY3.54%
SpS90.5
BVpS35.75
TBVpS32.71
PEG (NY)1.13
PEG (5Y)0.39
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 | 6.58 |
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%