HAMMOND POWER SOLUTIONS INC (HPS-A.CA) Stock Fundamental Analysis
Canada - TSX:HPS-A - CA4085491039 - Common Stock
164.66 CAD
+0.95 (+0.58%)
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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make HPS-A suitable 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.
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 better Return On Equity (23.41%) than 100.00% of its industry peers.
HPS-A's Return On Invested Capital of 19.32% is amongst the best of the industry. HPS-A outperforms 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 12.42%.
| 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.
Looking at the Operating Margin, with a value of 13.11%, 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 Operating Margin of HPS-A has grown nicely.
With an excellent Gross Margin value of 31.21%, HPS-A belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
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.
Compared to 1 year ago, HPS-A has about the same amount of shares outstanding.
The number of shares outstanding for HPS-A has been increased compared to 5 years ago.
HPS-A has a better debt/assets ratio than last year.
2.2 Solvency
HPS-A has an Altman-Z score of 6.99. This indicates that HPS-A is financially healthy and has little risk of bankruptcy at the moment.
HPS-A has a Altman-Z score of 6.99. This is in the better half of the industry: HPS-A outperforms 73.33% of its industry peers.
A Debt/Equity ratio of 0.25 indicates that HPS-A is not too dependend on debt financing.
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 | 6.99 |
ROIC/WACC2.51
WACC7.7%
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 has a better Current ratio (1.84) than 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.
HPS-A has a Quick ratio (1.03) which 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.
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.
HPS-A shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.19%.
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)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.
HPS-A is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.21% yearly.
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
Based on the Price/Earnings ratio of 24.32, 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.10, the valuation of HPS-A can be described as rather expensive.
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 73.33% of the companies listed in the same industry.
HPS-A is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 20.1 |
4.2 Price Multiples
HPS-A's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HPS-A is cheaper than 93.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 11.64 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.38
PEG (5Y)0.56
EPS Next 2Y16.75%
EPS Next 3Y16.16%
5. Dividend
5.1 Amount
HPS-A has a yearly dividend return of 0.67%, which is pretty low.
HPS-A's Dividend Yield is rather good when compared to the industry average which is at 0.59. HPS-A pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, HPS-A's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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
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 (11/14/2025, 7:00:00 PM)
164.66
+0.95 (+0.58%)
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 Cap1.50B
Revenue(TTM)852.64M
Net Income(TTM)80.72M
Analysts83.33
Price Target182.58 (10.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.67% |
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)21.36%
EPS NQ rev (1m)8.39%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.66%
EPS NY rev (3m)-10.41%
Revenue NQ rev (1m)2.67%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.98%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.32 | ||
| Fwd PE | 20.1 | ||
| P/S | 1.76 | ||
| P/FCF | N/A | ||
| P/OCF | 86.85 | ||
| P/B | 4.36 | ||
| P/tB | 4.74 | ||
| EV/EBITDA | 11.64 |
EPS(TTM)6.77
EY4.11%
EPS(NY)8.19
Fwd EY4.98%
FCF(TTM)-2.14
FCFYN/A
OCF(TTM)1.9
OCFY1.15%
SpS93.39
BVpS37.77
TBVpS34.75
PEG (NY)2.38
PEG (5Y)0.56
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 | 6.99 |
F-Score2
WACC7.7%
ROIC/WACC2.51
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 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 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%.