HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
163.69 CAD
-1.43 (-0.87%)
Taking everything into account, HPS-A scores 7 out of 10 in our fundamental rating. HPS-A was compared to 14 industry peers in the Electrical Equipment industry. While HPS-A has a great profitability rating, there are some minor concerns on its financial health. HPS-A is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make HPS-A a good candidate for growth investing.
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.
HPS-A had positive earnings in each of the past 5 years.
HPS-A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of HPS-A (13.83%) is better than 100.00% of its industry peers.
HPS-A has a better Return On Equity (23.41%) than 100.00% of its industry peers.
The Return On Invested Capital of HPS-A (19.32%) is better than 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HPS-A 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 has a better Profit Margin (9.47%) than 100.00% of its industry peers.
HPS-A's Profit Margin has improved in the last couple of years.
HPS-A has a Operating Margin of 13.11%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of HPS-A has grown nicely.
Looking at the Gross Margin, with a value of 31.21%, HPS-A belongs to the top of the industry, outperforming 85.71% 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 | 13.11% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), HPS-A 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.
The debt/assets ratio for HPS-A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.00 indicates that HPS-A is not in any danger for bankruptcy at the moment.
HPS-A has a Altman-Z score of 7.00. This is in the better half of the industry: HPS-A outperforms 64.29% 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 has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7 |
ROIC/WACC2.53
WACC7.65%
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 64.29% 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.
The Quick ratio of HPS-A (1.03) 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
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
Looking at the last year, HPS-A shows a quite strong growth in Revenue. The Revenue has grown by 11.19% in the last year.
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.
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
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.
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
With a Price/Earnings ratio of 24.18, HPS-A is valued on the expensive side.
HPS-A's Price/Earnings ratio is rather cheap when compared to the industry. HPS-A is cheaper than 92.86% of the companies in the same industry.
When comparing the Price/Earnings ratio of HPS-A to the average of the S&P500 Index (27.25), we can say HPS-A is valued inline with the index average.
HPS-A is valuated rather expensively with a Price/Forward Earnings ratio of 19.98.
Based on the Price/Forward Earnings ratio, HPS-A is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.98, HPS-A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.18 | ||
| Fwd PE | 19.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HPS-A is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.68 |
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)2.37
PEG (5Y)0.55
EPS Next 2Y16.75%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
With a yearly dividend of 0.68%, HPS-A is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.09, 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 0.68, HPS-A pays less dividend than the S&P500 average, which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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.
HPS-A's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP16.22%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
TSX:HPS-A (1/12/2026, 7:00:00 PM)
163.69
-1.43 (-0.87%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners46.53%
Inst Owner ChangeN/A
Ins Owners2.08%
Ins Owner ChangeN/A
Market Cap1.49B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (18.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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 | 24.18 | ||
| Fwd PE | 19.98 | ||
| P/S | 1.75 | ||
| P/FCF | N/A | ||
| P/OCF | 86.34 | ||
| P/B | 4.33 | ||
| P/tB | 4.71 | ||
| EV/EBITDA | 11.68 |
EPS(TTM)6.77
EY4.14%
EPS(NY)8.19
Fwd EY5%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.16%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.37
PEG (5Y)0.55
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 |
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
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 24.18 and the Price/Book (PB) ratio is 4.33.
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.