HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:HPS-A - CA4085491039 - Common Stock
160.29 CAD
-0.22 (-0.14%)
We assign a fundamental rating of 7 out of 10 to HPS-A. HPS-A was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. This makes HPS-A very considerable 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.
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
Looking at the Return On Assets, with a value of 13.83%, HPS-A belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
HPS-A has a Return On Equity of 23.41%. This is amongst the best in the industry. HPS-A outperforms 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.
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 Profit Margin of 9.47%. This is amongst the best in the industry. HPS-A outperforms 100.00% of its industry peers.
HPS-A's Profit Margin has improved in the last couple of years.
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 85.71% of its industry peers.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so HPS-A is creating value.
HPS-A has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for HPS-A has been increased compared to 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's Altman-Z score of 6.90 is fine compared to the rest of the industry. HPS-A outperforms 64.29% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that HPS-A is not too dependend on debt financing.
The Debt to Equity ratio of HPS-A (0.25) is comparable to the rest of the industry.
| 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.
With a decent Current ratio value of 1.84, HPS-A is doing good in the industry, outperforming 64.29% of the companies in the same industry.
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
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.
HPS-A shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 43.72% yearly.
HPS-A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.19%.
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 16.16% on average per year.
The Revenue is expected to grow by 12.21% on average over the next years. This is quite good.
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.68 indicates a rather expensive valuation of HPS-A.
92.86% of the companies in the same industry are more expensive than HPS-A, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.84. HPS-A is around the same levels.
The Price/Forward Earnings ratio is 19.57, which indicates a rather expensive current valuation of HPS-A.
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 64.29% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.40. HPS-A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 19.57 |
4.2 Price Multiples
92.86% 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
HPS-A has a yearly dividend return of 0.69%, which is pretty low.
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.
Compared to an average S&P500 Dividend Yield of 2.00, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of HPS-A grows each year by 28.23%, which is quite nice.
HPS-A has been paying a dividend for at least 10 years, so it has 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
16.22% 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.
DP16.22%
EPS Next 2Y16.75%
EPS Next 3Y16.16%
TSX:HPS-A (12/29/2025, 7:00:00 PM)
160.29
-0.22 (-0.14%)
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 Cap1.46B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target194.06 (21.07%)
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)0%
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)-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 | 23.68 | ||
| Fwd PE | 19.57 | ||
| P/S | 1.72 | ||
| P/FCF | N/A | ||
| P/OCF | 84.54 | ||
| P/B | 4.24 | ||
| P/tB | 4.61 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)6.77
EY4.22%
EPS(NY)8.19
Fwd EY5.11%
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%.