Investors Should Be Encouraged By Hammond Power Solutions' (TSE:HPS.A) Returns On Capital
Dec 20
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Canadian (TSX) Electrical Industry Analysis
UpdatedDec 20, 2024
DataAggregated Company Financials
Companies16
- 7D-5.5%
- 3M-9.8%
- 1Y-26.4%
- YTD-27.0%
Over the last 7 days, the Electrical industry has dropped 5.5%, driven by Hammond Power Solutions declining 6.1%. In contrast, SPARQ Systems has gained 13%. However, the industry is down 26% over the past year. As for the next few years, earnings are expected to grow by 26% per annum.
Industry Valuation and Performance
Has the Canadian Electrical Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Sat, 21 Dec 2024 | CA$2.8b | CA$1.2b | -CA$720,617,256.37 | 6.3x | -3.9x | 2.3x |
| Mon, 18 Nov 2024 | CA$2.7b | CA$1.2b | -CA$724,584,083.44 | 22.2x | -3.7x | 2.2x |
| Wed, 16 Oct 2024 | CA$3.1b | CA$1.2b | -CA$276,341,697.43 | 26.1x | -11.1x | 2.5x |
| Fri, 13 Sep 2024 | CA$2.8b | CA$1.2b | -CA$273,665,384.12 | 22.4x | -10.2x | 2.3x |
| Sun, 11 Aug 2024 | CA$2.9b | CA$1.2b | -CA$292,550,748.04 | 20.6x | -10x | 2.4x |
| Tue, 09 Jul 2024 | CA$3.0b | CA$1.2b | -CA$286,696,489.18 | 21.9x | -10.3x | 2.5x |
| Thu, 06 Jun 2024 | CA$3.3b | CA$1.2b | -CA$288,718,371.14 | 24x | -11.3x | 2.7x |
| Sat, 04 May 2024 | CA$3.2b | CA$1.2b | -CA$263,835,426.30 | 22.6x | -12x | 2.7x |
| Mon, 01 Apr 2024 | CA$3.6b | CA$1.2b | -CA$250,580,519.16 | 27.2x | -14.3x | 3.1x |
| Wed, 28 Feb 2024 | CA$3.3b | CA$1.1b | -CA$279,068,159.97 | 22.1x | -11.8x | 3x |
| Fri, 26 Jan 2024 | CA$3.2b | CA$1.1b | -CA$284,640,865.00 | 17.9x | -11.3x | 2.9x |
| Sun, 24 Dec 2023 | CA$3.1b | CA$1.1b | -CA$291,482,988.00 | 14.9x | -10.8x | 2.8x |
| Tue, 21 Nov 2023 | CA$3.2b | CA$1.1b | -CA$306,850,829.00 | 15.2x | -10.6x | 2.9x |
| Thu, 19 Oct 2023 | CA$3.1b | CA$1.1b | -CA$286,732,319.00 | 11.9x | -10.7x | 2.9x |
| Sat, 16 Sep 2023 | CA$3.2b | CA$1.1b | -CA$279,650,033.00 | 10.3x | -11.6x | 3x |
| Mon, 14 Aug 2023 | CA$3.5b | CA$1.1b | -CA$270,788,985.00 | 11.7x | -12.9x | 3.3x |
| Wed, 12 Jul 2023 | CA$3.3b | CA$1.0b | -CA$297,649,103.00 | 11.7x | -11.2x | 3.2x |
| Fri, 09 Jun 2023 | CA$3.3b | CA$1.0b | -CA$300,058,242.00 | 10.3x | -11.1x | 3.2x |
| Sun, 07 May 2023 | CA$3.4b | CA$1.1b | -CA$319,840,280.00 | 10.3x | -10.5x | 3.2x |
| Tue, 04 Apr 2023 | CA$3.7b | CA$989.3m | -CA$342,906,936.00 | 9.8x | -10.7x | 3.7x |
| Thu, 02 Mar 2023 | CA$3.6b | CA$981.5m | -CA$365,983,929.00 | 7.9x | -9.8x | 3.7x |
| Sat, 28 Jan 2023 | CA$3.7b | CA$938.7m | -CA$340,800,196.00 | 7.3x | -10.7x | 3.9x |
| Mon, 26 Dec 2022 | CA$2.8b | CA$941.5m | -CA$345,917,850.00 | 6.9x | -8.2x | 3x |
| Wed, 23 Nov 2022 | CA$3.2b | CA$939.5m | -CA$333,249,623.00 | 7.8x | -9.7x | 3.4x |
| Fri, 21 Oct 2022 | CA$3.0b | CA$882.1m | -CA$326,650,431.00 | 7.2x | -9.3x | 3.5x |
| Sun, 18 Sep 2022 | CA$3.7b | CA$877.1m | -CA$311,702,304.00 | 7.2x | -11.8x | 4.2x |
| Tue, 16 Aug 2022 | CA$4.3b | CA$872.3m | -CA$307,142,497.00 | 6.7x | -13.9x | 4.9x |
| Thu, 14 Jul 2022 | CA$3.3b | CA$815.5m | -CA$255,384,259.00 | 6.3x | -13x | 4.1x |
| Sat, 11 Jun 2022 | CA$3.3b | CA$813.7m | -CA$253,278,053.00 | 6.3x | -13.1x | 4.1x |
| Mon, 09 May 2022 | CA$3.8b | CA$810.0m | -CA$220,235,568.00 | 7.1x | -17.2x | 4.7x |
| Wed, 06 Apr 2022 | CA$5.2b | CA$743.8m | -CA$188,989,790.00 | 7.1x | -27.4x | 7x |
| Fri, 04 Mar 2022 | CA$4.6b | CA$681.1m | -CA$145,666,759.00 | 9.5x | -31.5x | 6.7x |
| Sun, 30 Jan 2022 | CA$4.2b | CA$683.0m | -CA$140,401,273.00 | 9.1x | -30.2x | 6.2x |
| Tue, 28 Dec 2021 | CA$5.7b | CA$681.4m | -CA$138,724,610.00 | 8.7x | -41.1x | 8.4x |
Price to Earnings Ratio
-41.1x
Current Industry PE
- Investors are pessimistic on the Canadian Electrical industry, indicating that they anticipate long term growth rates will be lower than they have historically.
- The 3-year average PS ratio of 3.6x is higher than the industry's current PS ratio of 2.3x.
Past Earnings Growth
- The earnings for companies in the Electrical industry have deteriorated over the last three years.
- Meanwhile revenues for these companies have grown 22% per year.
- This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased, which has caused losses to expand.
Industry Trends
Which industries have driven the changes within the Canadian Industrials industry?
| CA Market | -3.68% | |
| Industrials | -2.85% | |
| Electrical | -5.46% | |
| Electrical Components | -5.35% | |
| Heavy Electrical Equipment | -21.05% | |
Industry PE
Forecasted Growth
- Analysts are most optimistic on the Electrical Components industry, expecting annual earnings growth of 26% over the next 5 years.
- This is better than its past earnings growth rate of 4.9% per year.
- In contrast, the Electrical Components industry is expected to see its earnings grow by 26% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| BLDP Ballard Power Systems | CA$2.34 | 2.2% +CA$15.0m | -52.1% | PS5.3x | |
| SPRQ SPARQ Systems | CA$0.82 | 10.8% +CA$9.3m | 507.4% | PS262.4x | |
| GMG Graphene Manufacturing Group | CA$0.65 | 4.8% +CA$2.9m | -54.2% | PS280.3x | |
| DYA dynaCERT | CA$0.18 | 2.9% +CA$2.2m | 16.1% | PS53.3x | |
| ELVA Electrovaya | CA$3.16 | -12.2% CA$1.3m | -22.4% | PS1.9x |
