HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - Toronto Stock Exchange - CA4085491039 - Common Stock - Currency: CAD
Taking everything into account, HPS-A scores 8 out of 10 in our fundamental rating. HPS-A was compared to 16 industry peers in the Electrical Equipment industry. HPS-A scores excellent points on both the profitability and health parts. This is a solid base for a good stock. HPS-A may be a bit undervalued, certainly considering the very reasonable score on growth These ratings would make HPS-A suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year HPS-A was profitable.
In the past year HPS-A had a positive cash flow from operations.
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
The Return On Assets of HPS-A (17.59%) is better than 100.00% of its industry peers.
The Return On Equity of HPS-A (27.31%) is better than 100.00% of its industry peers.
HPS-A has a Return On Invested Capital of 25.18%. 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 13.76%.
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.
In the last couple of years the Profit Margin of HPS-A has grown nicely.
HPS-A has a better Operating Margin (15.76%) than 100.00% of its industry peers.
HPS-A's Operating Margin has improved in the last couple of years.
HPS-A has a Gross Margin of 32.70%. This is amongst the best in the industry. HPS-A outperforms 93.75% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPS-A is creating value.
HPS-A has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HPS-A has been increased compared to 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 7.21 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A has a Altman-Z score of 7.21. This is in the better half of the industry: HPS-A outperforms 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 better Debt to FCF ratio (3.49) than 93.75% of its industry peers.
A Debt/Equity ratio of 0.13 indicates that HPS-A is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.13, HPS-A perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 7.21 |
ROIC/WACC2.82
WACC8.92%
2.3 Liquidity
HPS-A has a Current Ratio of 2.10. This indicates that HPS-A is financially healthy and has no problem in meeting its short term obligations.
HPS-A has a Current ratio of 2.10. This is in the better half of the industry: HPS-A outperforms 62.50% of its industry peers.
A Quick Ratio of 1.17 indicates that HPS-A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.17, HPS-A is in line with its industry, 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
HPS-A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.11%, which is quite impressive.
The Earnings Per Share has been growing by 43.72% on average over the past years. This is a very strong growth
The Revenue has grown by 9.52% in the past year. This is quite good.
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)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
Based on estimates for the next years, HPS-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.14% on average per year.
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
Based on the Price/Earnings ratio of 15.92, the valuation of HPS-A can be described as correct.
93.75% of the companies in the same industry are more expensive than HPS-A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.15. HPS-A is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 15.44, HPS-A is valued correctly.
Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 68.75% of the companies in the same industry.
HPS-A's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.92 | ||
| Fwd PE | 15.44 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 93.75% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 76.5 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
HPS-A's 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 0.91%, 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 0.76. HPS-A pays more dividend than 100.00% of the companies in the same industry.
With a Dividend Yield of 0.91, HPS-A pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
On average, the dividend of HPS-A grows each year by 28.23%, which is quite nice.
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
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 (6/27/2025, 7:00:00 PM)
120
-0.36 (-0.3%)
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 Cap1.10B
Analysts83.33
Price Target151.73 (26.44%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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)-9.3%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)1.42%
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 | 15.92 | ||
| Fwd PE | 15.44 | ||
| P/S | 1.37 | ||
| P/FCF | 76.5 | ||
| P/OCF | 19.76 | ||
| P/B | 3.33 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)7.54
EY6.28%
EPS(NY)7.77
Fwd EY6.48%
FCF(TTM)1.57
FCFY1.31%
OCF(TTM)6.07
OCFY5.06%
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 | 7.21 |
F-Score5
WACC8.92%
ROIC/WACC2.82
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%