HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - TSX:HPS-A - CA4085491039 - Common Stock
184.23 CAD
-4.56 (-2.42%)
HPS-A gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 15 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 has a decent growth rate and is not valued too expensively.
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.
In the past 5 years HPS-A has always been profitable.
Each year in the past 5 years HPS-A had a positive operating cash flow.
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.
With an excellent Return On Equity value of 23.41%, 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 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 12.67%.
| 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
With an excellent Profit Margin value of 9.47%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
HPS-A's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 13.11%, HPS-A belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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
HPS-A has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
HPS-A has about the same amout of shares outstanding than it did 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
HPS-A has an Altman-Z score of 7.54. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
HPS-A has a better Altman-Z score (7.54) than 73.33% 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.
With a Debt to Equity ratio value of 0.25, HPS-A perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.54 |
ROIC/WACC2.5
WACC7.72%
2.3 Liquidity
HPS-A has a Current Ratio of 1.84. This is a normal value and indicates that HPS-A is financially healthy and should not expect problems in meeting 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's Quick ratio of 1.03 is in line compared to the rest of the industry. HPS-A outperforms 46.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.77% over the past year.
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 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
Based on estimates for the next years, HPS-A will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.83% on average per year.
The Revenue is expected to grow by 7.85% on average over the next years.
EPS Next Y10.93%
EPS Next 2Y13.35%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue Next Year10.82%
Revenue Next 2Y10.02%
Revenue Next 3Y7.85%
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
With a Price/Earnings ratio of 27.21, HPS-A can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HPS-A indicates a rather cheap valuation: HPS-A is cheaper than 93.33% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HPS-A to the average of the S&P500 Index (25.83), we can say HPS-A is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 23.86, the valuation of HPS-A can be described as rather expensive.
HPS-A's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HPS-A is 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 (32.68), we can say HPS-A is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 23.86 |
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 | 13.37 |
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.
PEG (NY)2.49
PEG (5Y)0.62
EPS Next 2Y13.35%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, HPS-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.54, HPS-A pays a better dividend. On top of this HPS-A pays more dividend than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of HPS-A is nicely growing with an annual growth rate of 28.23%!
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.
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 2Y13.35%
EPS Next 3Y9.83%
TSX:HPS-A (11/7/2025, 7:00:00 PM)
184.23
-4.56 (-2.42%)
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 Cap1.68B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target182.58 (-0.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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)19.33%
PT rev (3m)20.74%
EPS NQ rev (1m)6.4%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-9.82%
Revenue NQ rev (1m)0.45%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.21 | ||
| Fwd PE | 23.86 | ||
| P/S | 1.97 | ||
| P/FCF | N/A | ||
| P/OCF | 97.17 | ||
| P/B | 4.88 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)6.77
EY3.67%
EPS(NY)7.72
Fwd EY4.19%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.03%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.49
PEG (5Y)0.62
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 | 7.54 |
F-Score2
WACC7.72%
ROIC/WACC2.5
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 Y10.93%
EPS Next 2Y13.35%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue 1Y (TTM)11.19%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.74%
Revenue Next Year10.82%
Revenue Next 2Y10.02%
Revenue Next 3Y7.85%
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 6 / 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%.