HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
TSX:HPS-A - Toronto Stock Exchange - CA4085491039 - Common Stock - Currency: CAD
HPS-A gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 14 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 valued quite cheap, while showing a decent growth score. This is a good combination! This makes HPS-A very considerable for value 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.
Each year in the past 5 years HPS-A had a positive operating cash flow.
1.2 Ratios
HPS-A has a Return On Assets of 14.91%. 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 24.99%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Return On Invested Capital of 23.83% is amongst the best of the industry. HPS-A outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HPS-A is significantly above the industry average of 14.60%.
The last Return On Invested Capital (23.83%) for HPS-A is above the 3 year average (19.80%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.91% | ||
| ROE | 24.99% | ||
| ROIC | 23.83% |
ROA(3y)12.26%
ROA(5y)9.93%
ROE(3y)21.64%
ROE(5y)17.57%
ROIC(3y)19.8%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 8.84%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Profit Margin of HPS-A has grown nicely.
The Operating Margin of HPS-A (12.22%) is better 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 33.46%. This is amongst the best in the industry. HPS-A outperforms 92.31% of its industry peers.
In the last couple of years the Gross Margin of HPS-A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.22% | ||
| PM (TTM) | 8.84% | ||
| GM | 33.46% |
OM growth 3YN/A
OM growth 5Y22.69%
PM growth 3Y26.82%
PM growth 5YN/A
GM growth 3Y8.78%
GM growth 5Y6.99%
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 more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HPS-A has more shares outstanding
HPS-A has a worse debt/assets ratio than last year.
2.2 Solvency
HPS-A has an Altman-Z score of 6.15. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HPS-A (6.15) is better than 76.92% of its industry peers.
HPS-A has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
HPS-A has a Debt to FCF ratio of 1.38. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.11 indicates that HPS-A is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.11, HPS-A perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.38 | ||
| Altman-Z | 6.15 |
ROIC/WACC3.13
WACC7.62%
2.3 Liquidity
A Current Ratio of 1.97 indicates that HPS-A should not have too much problems paying its short term obligations.
HPS-A has a better Current ratio (1.97) than 76.92% of its industry peers.
HPS-A has a Quick Ratio of 1.19. 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 1.19, HPS-A is in line with its industry, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.19 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.04% over the past year.
The Earnings Per Share has been growing by 64.33% on average over the past years. This is a very strong growth
Looking at the last year, HPS-A shows a quite strong growth in Revenue. The Revenue has grown by 14.90% in the last year.
The Revenue has been growing by 17.72% on average over the past years. This is quite good.
EPS 1Y (TTM)10.04%
EPS 3Y64.33%
EPS 5YN/A
EPS Q2Q%13.22%
Revenue 1Y (TTM)14.9%
Revenue growth 3Y30.15%
Revenue growth 5Y17.72%
Sales Q2Q%6.94%
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 9.67% yearly.
HPS-A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.06% yearly.
EPS Next Y12.08%
EPS Next 2Y16.94%
EPS Next 3Y9.67%
EPS Next 5YN/A
Revenue Next Year11.11%
Revenue Next 2Y10.64%
Revenue Next 3Y9.06%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 15.23, which indicates a correct valuation of HPS-A.
Compared to the rest of the industry, the Price/Earnings ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 92.31% of the companies listed in the same industry.
HPS-A is valuated rather cheaply when we compare the Price/Earnings ratio to 29.62, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.91, which indicates a very decent valuation of HPS-A.
Based on the Price/Forward Earnings ratio, HPS-A is valued cheaper than 84.62% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. HPS-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 92.31% of the companies listed in the same industry.
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 92.31% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.74 | ||
| EV/EBITDA | 7.02 |
4.3 Compensation for Growth
HPS-A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of HPS-A may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y16.94%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
HPS-A has a Yearly Dividend Yield of 1.22%.
The stock price of HPS-A dropped by -38.90% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.91. HPS-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of HPS-A grows each year by 18.01%, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)18.01%
Div Incr Years3
Div Non Decr Years14
5.3 Sustainability
14.93% of the earnings are spent on dividend by HPS-A. This is a low number and sustainable payout ratio.
The dividend of HPS-A is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP14.93%
EPS Next 2Y16.94%
EPS Next 3Y9.67%
TSX:HPS-A (2/21/2025, 7:00:00 PM)
86.83
-3.33 (-3.69%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners47.12%
Inst Owner ChangeN/A
Ins Owners2.49%
Ins Owner ChangeN/A
Market Cap792.76M
Analysts83.64
Price Target167.28 (92.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend0.55
Dividend Growth(5Y)18.01%
DP14.93%
Div Incr Years3
Div Non Decr Years14
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.92%
Min EPS beat(2)-13.07%
Max EPS beat(2)9.22%
EPS beat(4)2
Avg EPS beat(4)-5.67%
Min EPS beat(4)-52.52%
Max EPS beat(4)33.69%
EPS beat(8)5
Avg EPS beat(8)13.57%
EPS beat(12)9
Avg EPS beat(12)25.06%
EPS beat(16)12
Avg EPS beat(16)32.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.71%
Min Revenue beat(2)-5.68%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-5.68%
Max Revenue beat(4)0.59%
Revenue beat(8)4
Avg Revenue beat(8)-0.66%
Revenue beat(12)8
Avg Revenue beat(12)4.62%
Revenue beat(16)11
Avg Revenue beat(16)3.77%
PT rev (1m)-1.01%
PT rev (3m)-2.38%
EPS NQ rev (1m)12.18%
EPS NQ rev (3m)8.54%
EPS NY rev (1m)3.51%
EPS NY rev (3m)1.4%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)5.07%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.23 | ||
| Fwd PE | 11.91 | ||
| P/S | 1.03 | ||
| P/FCF | 29.74 | ||
| P/OCF | 12.69 | ||
| P/B | 2.92 | ||
| P/tB | 3.13 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)5.7
EY6.56%
EPS(NY)7.29
Fwd EY8.39%
FCF(TTM)2.92
FCFY3.36%
OCF(TTM)6.84
OCFY7.88%
SpS83.99
BVpS29.7
TBVpS27.78
PEG (NY)1.26
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.91% | ||
| ROE | 24.99% | ||
| ROCE | 32.72% | ||
| ROIC | 23.83% | ||
| ROICexc | 28.45% | ||
| ROICexgc | 30.56% | ||
| OM | 12.22% | ||
| PM (TTM) | 8.84% | ||
| GM | 33.46% | ||
| FCFM | 3.48% |
ROA(3y)12.26%
ROA(5y)9.93%
ROE(3y)21.64%
ROE(5y)17.57%
ROIC(3y)19.8%
ROIC(5y)N/A
ROICexc(3y)23.84%
ROICexc(5y)N/A
ROICexgc(3y)26.95%
ROICexgc(5y)N/A
ROCE(3y)27.54%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y29.18%
ROICexc growth 3YN/A
ROICexc growth 5Y31.03%
OM growth 3YN/A
OM growth 5Y22.69%
PM growth 3Y26.82%
PM growth 5YN/A
GM growth 3Y8.78%
GM growth 5Y6.99%
F-Score4
Asset Turnover1.69
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.38 | ||
| Debt/EBITDA | 0.28 | ||
| Cap/Depr | 236.56% | ||
| Cap/Sales | 4.67% | ||
| Interest Coverage | 226.37 | ||
| Cash Conversion | 57.38% | ||
| Profit Quality | 39.34% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.19 | ||
| Altman-Z | 6.15 |
F-Score4
WACC7.62%
ROIC/WACC3.13
Cap/Depr(3y)119.21%
Cap/Depr(5y)96.18%
Cap/Sales(3y)2.05%
Cap/Sales(5y)1.76%
Profit Quality(3y)67.64%
Profit Quality(5y)85.28%
High Growth Momentum
Growth
EPS 1Y (TTM)10.04%
EPS 3Y64.33%
EPS 5YN/A
EPS Q2Q%13.22%
EPS Next Y12.08%
EPS Next 2Y16.94%
EPS Next 3Y9.67%
EPS Next 5YN/A
Revenue 1Y (TTM)14.9%
Revenue growth 3Y30.15%
Revenue growth 5Y17.72%
Sales Q2Q%6.94%
Revenue Next Year11.11%
Revenue Next 2Y10.64%
Revenue Next 3Y9.06%
Revenue Next 5YN/A
EBIT growth 1Y13.69%
EBIT growth 3YN/A
EBIT growth 5Y44.43%
EBIT Next Year70.82%
EBIT Next 3Y24.26%
EBIT Next 5YN/A
FCF growth 1Y-38.34%
FCF growth 3Y16.91%
FCF growth 5Y41.72%
OCF growth 1Y20.54%
OCF growth 3Y30.87%
OCF growth 5Y46.8%