HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
173.43 CAD
+1.21 (+0.7%)
Taking everything into account, HPS-A scores 7 out of 10 in our fundamental rating. HPS-A was compared to 14 industry peers in the Electrical Equipment industry. HPS-A has an excellent profitability rating, but there are some minor concerns on its financial health. HPS-A is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make HPS-A suitable for growth 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.
In the past 5 years HPS-A has always been profitable.
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 13.83% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A has a better Return On Equity (23.41%) than 100.00% of its industry peers.
HPS-A has a better Return On Invested Capital (19.32%) than 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 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.83% | ||
| ROE | 23.41% | ||
| ROIC | 19.32% |
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 (9.47%) is better than 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 13.11%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of HPS-A has grown nicely.
The Gross Margin of HPS-A (31.21%) is better than 85.71% of its industry peers.
HPS-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.11% | ||
| PM (TTM) | 9.47% | ||
| GM | 31.21% |
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.
HPS-A has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, HPS-A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.16 indicates that HPS-A is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.16, HPS-A is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that HPS-A is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.25, HPS-A is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.16 |
ROIC/WACC2.54
WACC7.61%
2.3 Liquidity
A Current Ratio of 1.84 indicates that HPS-A should not have too much problems paying its short term obligations.
HPS-A's Current ratio of 1.84 is fine compared to the rest of the industry. HPS-A outperforms 64.29% of its industry peers.
HPS-A has a Quick Ratio of 1.03. 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 1.03, HPS-A is in line with its industry, outperforming 42.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.03 |
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 18.77%, 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
HPS-A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.19%.
Measured over the past years, HPS-A shows a quite strong growth in Revenue. The Revenue has been growing by 17.05% on average per year.
EPS 1Y (TTM)18.77%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%6.57%
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%
3.2 Future
Based on estimates for the next years, HPS-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.16% on average per year.
The Revenue is expected to grow by 12.21% on average over the next years. This is quite good.
EPS Next Y10.2%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
EPS Next 5YN/A
Revenue Next Year11.9%
Revenue Next 2Y12.99%
Revenue Next 3Y12.21%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.62, which means the current valuation is very expensive for HPS-A.
HPS-A's Price/Earnings ratio is rather cheap when compared to the industry. HPS-A is cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of HPS-A to the average of the S&P500 Index (26.31), we can say HPS-A is valued inline with the index average.
The Price/Forward Earnings ratio is 21.17, which indicates a rather expensive current valuation of HPS-A.
Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 64.29% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, HPS-A is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
92.86% of the companies in the same industry are more expensive than HPS-A, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HPS-A does not grow enough to justify the current Price/Earnings ratio.
HPS-A has an outstanding profitability rating, which may justify a higher PE ratio.
HPS-A's earnings are expected to grow with 16.16% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.51
PEG (5Y)0.59
EPS Next 2Y16.75%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.69%, which is pretty low.
Compared to an average industry Dividend Yield of 0.61, 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 0.69, HPS-A pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of HPS-A grows each year by 28.23%, which is quite nice.
HPS-A has been paying a dividend for at least 10 years, so it has 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
HPS-A pays out 16.22% of its income as dividend. This is a sustainable payout ratio.
HPS-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.22%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
TSX:HPS-A (11/28/2025, 7:00:00 PM)
173.43
+1.21 (+0.7%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners39.47%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.58B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (11.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.22%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-23.26%
Min EPS beat(2)-36.04%
Max EPS beat(2)-10.47%
EPS beat(4)2
Avg EPS beat(4)-7.93%
Min EPS beat(4)-36.04%
Max EPS beat(4)8.54%
EPS beat(8)4
Avg EPS beat(8)-6.8%
EPS beat(12)7
Avg EPS beat(12)6.41%
EPS beat(16)11
Avg EPS beat(16)16.81%
Revenue beat(2)1
Avg Revenue beat(2)-0.65%
Min Revenue beat(2)-2.37%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-2.51%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-2.05%
Revenue beat(12)5
Avg Revenue beat(12)-1.28%
Revenue beat(16)9
Avg Revenue beat(16)2.84%
PT rev (1m)26.83%
PT rev (3m)28.98%
EPS NQ rev (1m)8.39%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-4.22%
Revenue NQ rev (1m)2.67%
Revenue NQ rev (3m)4.54%
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.62 | ||
| Fwd PE | 21.17 | ||
| P/S | 1.86 | ||
| P/FCF | N/A | ||
| P/OCF | 91.47 | ||
| P/B | 4.59 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | 12.18 |
EPS(TTM)6.77
EY3.9%
EPS(NY)8.19
Fwd EY4.72%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.09%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.51
PEG (5Y)0.59
Graham Number75.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.83% | ||
| ROE | 23.41% | ||
| ROCE | 30.62% | ||
| ROIC | 19.32% | ||
| ROICexc | 21.21% | ||
| ROICexgc | 22.81% | ||
| OM | 13.11% | ||
| PM (TTM) | 9.47% | ||
| GM | 31.21% | ||
| 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
ROICexgc growth 3Y25.72%
ROICexgc 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 Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 227.4% | ||
| Cap/Sales | 4.32% | ||
| Interest Coverage | 66.57 | ||
| Cash Conversion | 13.53% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 7.16 |
F-Score2
WACC7.61%
ROIC/WACC2.54
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)18.77%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%6.57%
EPS Next Y10.2%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
EPS Next 5YN/A
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%
Revenue Next Year11.9%
Revenue Next 2Y12.99%
Revenue Next 3Y12.21%
Revenue Next 5YN/A
EBIT growth 1Y19.26%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year31.84%
EBIT Next 3Y17.31%
EBIT Next 5YN/A
FCF growth 1Y-238.38%
FCF growth 3Y18%
FCF growth 5Y11.75%
OCF growth 1Y-47.12%
OCF growth 3Y46.24%
OCF growth 5Y29.45%
HAMMOND POWER SOLUTIONS INC / HPS-A.CA FAQ
Can you provide the ChartMill fundamental rating for HAMMOND POWER SOLUTIONS INC?
ChartMill assigns a fundamental rating of 7 / 10 to HPS-A.CA.
Can you provide the valuation status for HAMMOND POWER SOLUTIONS INC?
ChartMill assigns a valuation rating of 4 / 10 to HAMMOND POWER SOLUTIONS INC (HPS-A.CA). This can be considered as Fairly Valued.
What is the profitability of HPS-A stock?
HAMMOND POWER SOLUTIONS INC (HPS-A.CA) has a profitability rating of 9 / 10.
Can you provide the financial health for HPS-A stock?
The financial health rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 5 / 10.
Is the dividend of HAMMOND POWER SOLUTIONS INC sustainable?
The dividend rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 6 / 10 and the dividend payout ratio is 16.22%.