company background image
HPS.

Hammond Power Solutions TSX:HPS.A Stock Report

Last Price

CA$14.95

Market Cap

CA$176.9m

7D

3.0%

1Y

47.6%

Updated

21 May, 2022

Data

Company Financials +
HPS.A fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends5/6

HPS.A Stock Overview

Hammond Power Solutions Inc., together with its subsidiaries, designs, manufactures, and sells custom electrical engineered magnetics, standard electrical dry-types, cast resins, liquid filled transformers, and wound magnetic products for electrical and electronic industries.

Hammond Power Solutions Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hammond Power Solutions
Historical stock prices
Current Share PriceCA$14.95
52 Week HighCA$15.48
52 Week LowCA$9.55
Beta0.67
1 Month Change8.73%
3 Month Change18.93%
1 Year Change47.58%
3 Year Change90.45%
5 Year Change106.21%
Change since IPO1,768.75%

Recent News & Updates

May 07
Hammond Power Solutions (TSE:HPS.A) Is Increasing Its Dividend To CA$0.10

Hammond Power Solutions (TSE:HPS.A) Is Increasing Its Dividend To CA$0.10

Hammond Power Solutions Inc. ( TSE:HPS.A ) has announced that it will be increasing its dividend on the 28th of June to...

May 06
Results: Hammond Power Solutions Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Results: Hammond Power Solutions Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Hammond Power Solutions Inc. ( TSE:HPS.A ) investors will be delighted, with the company turning in some strong numbers...

Shareholder Returns

HPS.ACA ElectricalCA Market
7D3.0%4.3%0.8%
1Y47.6%-51.6%4.9%

Return vs Industry: HPS.A exceeded the Canadian Electrical industry which returned -51.6% over the past year.

Return vs Market: HPS.A exceeded the Canadian Market which returned 4.8% over the past year.

Price Volatility

Is HPS.A's price volatile compared to industry and market?
HPS.A volatility
HPS.A Average Weekly Movement6.0%
Electrical Industry Average Movement11.1%
Market Average Movement9.9%
10% most volatile stocks in CA Market16.9%
10% least volatile stocks in CA Market4.3%

Stable Share Price: HPS.A is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: HPS.A's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19171,400Bill Hammondhttps://www.hammondpowersolutions.com

Hammond Power Solutions Inc., together with its subsidiaries, designs, manufactures, and sells custom electrical engineered magnetics, standard electrical dry-types, cast resins, liquid filled transformers, and wound magnetic products for electrical and electronic industries. The company offers autotransformers, buck-boost transformers, control transformers, distribution transformers, drive isolation transformers, encapsulated transformers, furnace transformers, multi-pulse transformers, pad mounted transformers, regulating transformers, and medium voltage distribution transformers, as well as reactors, active harmonic filters, dV/dT filters, and unitized substations. It serves the oil and gas, mining, steel, waste and water treatment, commercial construction, data centers and wind power generation industries in Canada, the United States, Mexico, and India.

Hammond Power Solutions Fundamentals Summary

How do Hammond Power Solutions's earnings and revenue compare to its market cap?
HPS.A fundamental statistics
Market CapCA$176.93m
Earnings (TTM)CA$21.45m
Revenue (TTM)CA$427.86m

8.2x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HPS.A income statement (TTM)
RevenueCA$427.86m
Cost of RevenueCA$311.04m
Gross ProfitCA$116.82m
Other ExpensesCA$95.37m
EarningsCA$21.45m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

Aug 02, 2022

Earnings per share (EPS)1.81
Gross Margin27.30%
Net Profit Margin5.01%
Debt/Equity Ratio15.4%

How did HPS.A perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

19%

Payout Ratio

Does HPS.A pay a reliable dividends?

See HPS.A dividend history and benchmarks
When do you need to buy HPS.A by to receive an upcoming dividend?
Hammond Power Solutions dividend dates
Ex Dividend DateJun 20 2022
Dividend Pay DateJun 28 2022
Days until Ex dividend29 days
Days until Dividend pay date37 days

Does HPS.A pay a reliable dividends?

See HPS.A dividend history and benchmarks

Valuation

Is Hammond Power Solutions undervalued compared to its fair value and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


33.7%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HPS.A (CA$14.95) is trading below our estimate of fair value (CA$22.54)

Significantly Below Fair Value: HPS.A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HPS.A is good value based on its PE Ratio (8.2x) compared to the North American Electrical industry average (17.3x).

PE vs Market: HPS.A is good value based on its PE Ratio (8.2x) compared to the Canadian market (11.5x).


Price to Earnings Growth Ratio

PEG Ratio: HPS.A is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: HPS.A is good value based on its PB Ratio (1.3x) compared to the CA Electrical industry average (1.7x).


Future Growth

How is Hammond Power Solutions forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


1.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HPS.A's forecast earnings growth (1.7% per year) is above the savings rate (1.6%).

Earnings vs Market: HPS.A's earnings (1.7% per year) are forecast to grow slower than the Canadian market (7.5% per year).

High Growth Earnings: HPS.A's earnings are forecast to grow, but not significantly.

Revenue vs Market: HPS.A's revenue (6.1% per year) is forecast to grow slower than the Canadian market (6.4% per year).

High Growth Revenue: HPS.A's revenue (6.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HPS.A's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Hammond Power Solutions performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


22.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HPS.A has high quality earnings.

Growing Profit Margin: HPS.A's current net profit margins (5%) are higher than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: HPS.A's earnings have grown significantly by 22.2% per year over the past 5 years.

Accelerating Growth: HPS.A's earnings growth over the past year (50.7%) exceeds its 5-year average (22.2% per year).

Earnings vs Industry: HPS.A earnings growth over the past year (50.7%) exceeded the Electrical industry 31.3%.


Return on Equity

High ROE: HPS.A's Return on Equity (16%) is considered low.


Financial Health

How is Hammond Power Solutions's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HPS.A's short term assets (CA$185.5M) exceed its short term liabilities (CA$113.4M).

Long Term Liabilities: HPS.A's short term assets (CA$185.5M) exceed its long term liabilities (CA$6.2M).


Debt to Equity History and Analysis

Debt Level: HPS.A's net debt to equity ratio (0.7%) is considered satisfactory.

Reducing Debt: HPS.A's debt to equity ratio has reduced from 27% to 15.4% over the past 5 years.

Debt Coverage: HPS.A's debt is well covered by operating cash flow (135.4%).

Interest Coverage: HPS.A's interest payments on its debt are well covered by EBIT (20.2x coverage).


Balance Sheet


Dividend

What is Hammond Power Solutions's current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.27%

Current Dividend Yield

Upcoming Dividend Payment

TodayMay 22 2022Ex Dividend DateJun 20 2022Dividend Pay DateJun 28 20228 days from Ex DividendBuy in the next 29 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: HPS.A's dividend (2.27%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).

High Dividend: HPS.A's dividend (2.27%) is low compared to the top 25% of dividend payers in the Canadian market (4.91%).


Stability and Growth of Payments

Stable Dividend: HPS.A's dividends per share have been stable in the past 10 years.

Growing Dividend: HPS.A's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (18.6%), HPS.A's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (18.4%), HPS.A's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Bill Hammond

no data

Tenure

CA$1,087,795

Compensation

Mr. William G. Hammond, also known as Bill, serves as the Chairman and Chief Executive Officer at Hammond Power Solutions Inc. Mr. Hammond served as the President of Hammond Manufacturing Company Limited f...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD847.29K) is above average for companies of similar size in the Canadian market ($USD168.24K).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HPS.A's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: HPS.A's board of directors are seasoned and experienced ( 11 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HPS.A insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hammond Power Solutions Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hammond Power Solutions Inc.
  • Ticker: HPS.A
  • Exchange: TSX
  • Founded: 1917
  • Industry: Electrical Components and Equipment
  • Sector: Capital Goods
  • Implied Market Cap: CA$176.932m
  • Shares outstanding: 11.83m
  • Website: https://www.hammondpowersolutions.com

Number of Employees


Location

  • Hammond Power Solutions Inc.
  • 595 Southgate Drive
  • Guelph
  • Ontario
  • N1G 3W6
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/21 00:00
End of Day Share Price2022/05/20 00:00
Earnings2022/04/02
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.