HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
158.53 CAD
+0.39 (+0.25%)
HPS-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 15 industry peers in the Electrical Equipment industry. HPS-A scores excellent on profitability, but there are some minor concerns on its financial health. HPS-A is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make HPS-A a good candidate for growth investing.
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.
- HPS-A had positive earnings in each of the past 5 years.
- In the past 5 years HPS-A always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 13.83%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
- HPS-A has a better Return On Equity (23.41%) than 100.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 19.32%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- 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 12.87%.
| 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
- HPS-A's Profit Margin of 9.47% is amongst the best of 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 has a better Operating Margin (13.11%) than 100.00% of its industry peers.
- HPS-A's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 31.21%, HPS-A belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- In the last couple of years the Gross Margin of HPS-A has grown nicely.
| 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
- HPS-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- 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 6.85. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
- HPS-A's Altman-Z score of 6.85 is in line compared to the rest of the industry. HPS-A outperforms 53.33% of its industry peers.
- A Debt/Equity ratio of 0.25 indicates that HPS-A is not too dependend on debt financing.
- HPS-A's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. HPS-A outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 6.85 |
ROIC/WACC2.46
WACC7.85%
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 66.67% of its industry peers.
- A Quick Ratio of 1.03 indicates that HPS-A should not have too much problems paying its short term obligations.
- HPS-A has a Quick ratio (1.03) which is comparable to the rest of the 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.
- 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 11.19% in the past year. This is quite good.
- HPS-A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.05% yearly.
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
- The Earnings Per Share is expected to grow by 16.16% on average over the next years. This is quite good.
- HPS-A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.21% yearly.
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 23.42, which indicates a rather expensive current valuation of HPS-A.
- 93.33% of the companies in the same industry are more expensive than HPS-A, based on the Price/Earnings ratio.
- HPS-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.38.
- HPS-A is valuated rather expensively with a Price/Forward Earnings ratio of 19.35.
- Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 66.67% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of HPS-A to the average of the S&P500 Index (24.29), we can say HPS-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 19.35 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HPS-A is valued cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.21 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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)2.3
PEG (5Y)0.54
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.
- HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.08. HPS-A pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, HPS-A's dividend is way lower than the S&P500 average.
| 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 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
- HPS-A pays out 16.22% of its income as dividend. This is a sustainable payout ratio.
- The dividend of HPS-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP16.22%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
TSX:HPS-A (1/19/2026, 7:00:00 PM)
158.53
+0.39 (+0.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)10-23 2025-10-23/amc
Earnings (Next)03-18 2026-03-18
Inst Owners46.53%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.45B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (22.41%)
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-DateN/A
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)0%
PT rev (3m)26.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.39%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.42 | ||
| Fwd PE | 19.35 | ||
| P/S | 1.7 | ||
| P/FCF | N/A | ||
| P/OCF | 83.62 | ||
| P/B | 4.2 | ||
| P/tB | 4.56 | ||
| EV/EBITDA | 11.21 |
EPS(TTM)6.77
EY4.27%
EPS(NY)8.19
Fwd EY5.17%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.2%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.3
PEG (5Y)0.54
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 | 6.85 |
F-Score2
WACC7.85%
ROIC/WACC2.46
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 Year30.93%
EBIT Next 3Y22.74%
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
What is the ChartMill fundamental rating of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?
ChartMill assigns a fundamental rating of 7 / 10 to HPS-A.CA.
What is the valuation status of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?
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.
What is the valuation of HAMMOND POWER SOLUTIONS INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is 23.42 and the Price/Book (PB) ratio is 4.2.
What is the expected EPS growth for HAMMOND POWER SOLUTIONS INC (HPS-A.CA) stock?
The Earnings per Share (EPS) of HAMMOND POWER SOLUTIONS INC (HPS-A.CA) is expected to grow by 10.2% in the next year.