HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - TSX:HPS-A - CA4085491039 - Common Stock
139.75 CAD
+0.19 (+0.14%)
Overall HPS-A gets a fundamental rating of 6 out of 10. We evaluated HPS-A 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HPS-A had positive earnings in the past year.
In the past year HPS-A had a positive cash flow from operations.
In the past 5 years HPS-A has always been profitable.
In the past 5 years HPS-A always reported a positive cash flow from operatings.
1.2 Ratios
HPS-A has a better Return On Assets (15.13%) than 100.00% of its industry peers.
The Return On Equity of HPS-A (24.38%) is better than 100.00% of its industry peers.
The Return On Invested Capital of HPS-A (21.42%) is better than 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 13.37%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 24.38% | ||
| ROIC | 21.42% |
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 has a Profit Margin of 9.63%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
In the last couple of years the Profit Margin of HPS-A has grown nicely.
HPS-A's Operating Margin of 13.37% is amongst the best of the industry. HPS-A outperforms 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 32.11%, HPS-A belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
HPS-A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.37% | ||
| PM (TTM) | 9.63% | ||
| GM | 32.11% |
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.
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.
HPS-A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.28 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A's Altman-Z score of 7.28 is fine compared to the rest of the industry. HPS-A outperforms 66.67% of its industry peers.
HPS-A has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HPS-A (0.18) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.28 |
ROIC/WACC2.72
WACC7.87%
2.3 Liquidity
HPS-A has a Current Ratio of 1.95. This is a normal value and indicates that HPS-A is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.95, HPS-A perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
HPS-A has a Quick Ratio of 1.10. 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 Quick ratio of 1.10 is in line compared to the rest of the industry. HPS-A outperforms 53.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.1 |
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 20.58%, which is quite impressive.
Measured over the past years, HPS-A shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.72% on average per year.
Looking at the last year, HPS-A shows a quite strong growth in Revenue. The Revenue has grown by 9.53% in the last year.
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)20.58%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%-43.43%
Revenue 1Y (TTM)9.53%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.8%
3.2 Future
The Earnings Per Share is expected to grow by 9.83% on average over the next years. This is quite good.
HPS-A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.85% yearly.
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.
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
HPS-A is valuated rather expensively with a Price/Earnings ratio of 20.92.
HPS-A's Price/Earnings ratio is rather cheap when compared to the industry. HPS-A is cheaper than 93.33% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.29. HPS-A is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 18.10, the valuation of HPS-A can be described as rather expensive.
Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than 73.33% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.85. HPS-A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 18.1 |
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 93.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.03 |
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.
PEG (NY)1.91
PEG (5Y)0.48
EPS Next 2Y13.35%
EPS Next 3Y9.83%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.81%, which is pretty low.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.70. HPS-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
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 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
16.45% 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.
DP16.45%
EPS Next 2Y13.35%
EPS Next 3Y9.83%
TSX:HPS-A (10/16/2025, 7:00:00 PM)
139.75
+0.19 (+0.14%)
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 Cap1.28B
Analysts83.33
Price Target153 (9.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.81% |
Yearly Dividend0.98
Dividend Growth(5Y)28.23%
DP16.45%
Div Incr Years3
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-14.89%
Min EPS beat(2)-36.04%
Max EPS beat(2)6.26%
EPS beat(4)2
Avg EPS beat(4)-8.57%
Min EPS beat(4)-36.04%
Max EPS beat(4)8.54%
EPS beat(8)5
Avg EPS beat(8)-5.11%
EPS beat(12)8
Avg EPS beat(12)15.53%
EPS beat(16)12
Avg EPS beat(16)19%
Revenue beat(2)1
Avg Revenue beat(2)-3.57%
Min Revenue beat(2)-8.22%
Max Revenue beat(2)1.08%
Revenue beat(4)1
Avg Revenue beat(4)-3.33%
Min Revenue beat(4)-8.22%
Max Revenue beat(4)1.08%
Revenue beat(8)3
Avg Revenue beat(8)-1.95%
Revenue beat(12)6
Avg Revenue beat(12)0.18%
Revenue beat(16)10
Avg Revenue beat(16)3.21%
PT rev (1m)1.69%
PT rev (3m)0.84%
EPS NQ rev (1m)-3.26%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.59%
EPS NY rev (3m)-9.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.92 | ||
| Fwd PE | 18.1 | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | 34.63 | ||
| P/B | 3.91 | ||
| P/tB | 4.27 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)6.68
EY4.78%
EPS(NY)7.72
Fwd EY5.53%
FCF(TTM)-0.67
FCFYN/A
OCF(TTM)4.04
OCFY2.89%
SpS90.5
BVpS35.75
TBVpS32.71
PEG (NY)1.91
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.13% | ||
| ROE | 24.38% | ||
| ROCE | 32.14% | ||
| ROIC | 21.42% | ||
| ROICexc | 23.09% | ||
| ROICexgc | 25.04% | ||
| OM | 13.37% | ||
| PM (TTM) | 9.63% | ||
| GM | 32.11% | ||
| 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
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-Score2
Asset Turnover1.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 0.46 | ||
| Cap/Depr | 266.7% | ||
| Cap/Sales | 5.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 29.1% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z | 7.28 |
F-Score2
WACC7.87%
ROIC/WACC2.72
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)20.58%
EPS 3Y67.02%
EPS 5Y43.72%
EPS Q2Q%-43.43%
EPS Next Y10.93%
EPS Next 2Y13.35%
EPS Next 3Y9.83%
EPS Next 5YN/A
Revenue 1Y (TTM)9.53%
Revenue growth 3Y27.52%
Revenue growth 5Y17.05%
Sales Q2Q%13.8%
Revenue Next Year10.82%
Revenue Next 2Y10.02%
Revenue Next 3Y7.85%
Revenue Next 5YN/A
EBIT growth 1Y22.06%
EBIT growth 3Y71.24%
EBIT growth 5Y36.95%
EBIT Next Year31.84%
EBIT Next 3Y17.31%
EBIT Next 5YN/A
FCF growth 1Y-142.18%
FCF growth 3Y18%
FCF growth 5Y11.75%
OCF growth 1Y36.08%
OCF growth 3Y46.24%
OCF growth 5Y29.45%