HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
160.5 CAD
-0.01 (-0.01%)
We assign a fundamental rating of 7 out of 10 to HPS-A. HPS-A was compared to 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, HPS-A could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
HPS-A had positive earnings in the past year.
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.
With an excellent Return On Invested Capital value of 19.32%, HPS-A belongs to the best 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
Looking at the Profit Margin, with a value of 9.47%, 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 (13.11%) 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 better Gross Margin (31.21%) than 86.67% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPS-A is creating value.
The number of shares outstanding for HPS-A remains at a similar level compared to 1 year ago.
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 6.90 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A has a better Altman-Z score (6.90) than 66.67% of its industry peers.
HPS-A has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
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 | 6.9 |
ROIC/WACC2.53
WACC7.65%
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 has a Current ratio of 1.84. This is in the better half of the industry: HPS-A outperforms 66.67% 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 46.67% 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%.
The Revenue has been growing by 17.05% on average over the past years. This is quite good.
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
HPS-A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.16% yearly.
Based on estimates for the next years, HPS-A will show a quite strong growth in Revenue. The Revenue will grow by 12.21% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
Based on the Price/Earnings ratio of 23.71, the valuation of HPS-A can be described as rather expensive.
Based on the Price/Earnings ratio, HPS-A is valued cheaper than 93.33% of the companies in the same industry.
HPS-A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.59.
HPS-A is valuated rather expensively with a Price/Forward Earnings ratio of 19.59.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HPS-A indicates a somewhat cheap valuation: HPS-A is cheaper than 66.67% of the companies listed in the same industry.
HPS-A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.71 | ||
| Fwd PE | 19.59 |
4.2 Price Multiples
93.33% 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 | 11.35 |
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.
The excellent profitability rating of HPS-A may justify a higher PE ratio.
A more expensive valuation may be justified as HPS-A's earnings are expected to grow with 16.16% in the coming years.
PEG (NY)2.32
PEG (5Y)0.54
EPS Next 2Y16.75%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, HPS-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.08, 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 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
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 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.
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 (12/24/2025, 7:00:00 PM)
160.5
-0.01 (-0.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners45.7%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.47B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (20.91%)
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)6.28%
PT rev (3m)26.83%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.03%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.22%
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 | 23.71 | ||
| Fwd PE | 19.59 | ||
| P/S | 1.72 | ||
| P/FCF | N/A | ||
| P/OCF | 84.65 | ||
| P/B | 4.25 | ||
| P/tB | 4.62 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)6.77
EY4.22%
EPS(NY)8.19
Fwd EY5.1%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.18%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.32
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 | 6.9 |
F-Score2
WACC7.65%
ROIC/WACC2.53
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
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%.