Hammond Power Solutions Inc.

TSX:HPS.A Stock Report

Market Cap: CA$1.5b

Hammond Power Solutions Valuation

Is HPS.A undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of HPS.A when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HPS.A (CA$126.57) is trading below our estimate of fair value (CA$232.05)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HPS.A?

Key metric: As HPS.A is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for HPS.A. This is calculated by dividing HPS.A's market cap by their current earnings.
What is HPS.A's PE Ratio?
PE Ratio22.2x
EarningsCA$67.76m
Market CapCA$1.55b

Price to Earnings Ratio vs Peers

How does HPS.A's PE Ratio compare to its peers?

The above table shows the PE ratio for HPS.A vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average18.3x
HMM.A Hammond Manufacturing
6.4xn/aCA$118.6m
BDT Bird Construction
15.6x27.2%CA$1.4b
BDGI Badger Infrastructure Solutions
20.4x37.8%CA$1.3b
SIS Savaria
31.1x31.4%CA$1.4b
HPS.A Hammond Power Solutions
22.2x11.5%CA$1.5b

Price-To-Earnings vs Peers: HPS.A is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (18.3x).

Price to Earnings Ratio vs Industry

How does HPS.A's PE Ratio compare vs other companies in the North American Electrical Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
HPS.A 22.2xIndustry Avg. 21.8xNo. of Companies7PE01224364860+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: HPS.A is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the North American Electrical industry average (21.9x).

Price to Earnings Ratio vs Fair Ratio

What is HPS.A's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HPS.A PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio19.6x

Price-To-Earnings vs Fair Ratio: HPS.A is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (19.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst HPS.A forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$126.57
CA$165.67
+30.9%
4.0%CA$175.00CA$160.00n/a3
Dec ’25CA$142.00
CA$165.67
+16.7%
4.0%CA$175.00CA$160.00n/a3
Nov ’25CA$124.17
CA$165.67
+33.4%
4.0%CA$175.00CA$160.00n/a3
Oct ’25CA$142.03
CA$166.33
+17.1%
2.7%CA$170.00CA$160.00n/a3
Sep ’25CA$125.23
CA$165.00
+31.8%
3.9%CA$170.00CA$156.00n/a3
Aug ’25CA$117.20
CA$163.00
+39.1%
3.3%CA$169.00CA$156.00n/a3
Jul ’25CA$111.49
CA$162.33
+45.6%
2.9%CA$167.00CA$156.00n/a3
Jun ’25CA$111.17
CA$162.33
+46.0%
2.9%CA$167.00CA$156.00n/a3
May ’25CA$103.78
CA$162.33
+56.4%
2.9%CA$167.00CA$156.00n/a3
Apr ’25CA$146.46
CA$161.50
+10.3%
3.4%CA$167.00CA$156.00n/a2
Mar ’25CA$118.95
CA$89.50
-24.8%
5.0%CA$94.00CA$85.00n/a2
Feb ’25CA$95.74
CA$89.50
-6.5%
5.0%CA$94.00CA$85.00n/a2
Jan ’25CA$81.70
CA$82.50
+1.0%
3.0%CA$85.00CA$80.00n/a2
Dec ’24CA$79.23
CA$82.50
+4.1%
3.0%CA$85.00CA$80.00CA$142.002
Nov ’24CA$73.90
CA$82.50
+11.6%
3.0%CA$85.00CA$80.00CA$124.172
Oct ’24CA$51.06
CA$70.00
+37.1%
1.4%CA$71.00CA$69.00CA$142.032
Sep ’24CA$56.35
CA$71.67
+27.2%
3.5%CA$75.00CA$69.00CA$125.233
Aug ’24CA$58.89
CA$62.67
+6.4%
14.6%CA$75.00CA$53.00CA$117.203
Jul ’24CA$49.11
CA$62.67
+27.6%
14.6%CA$75.00CA$53.00CA$111.493
Jun ’24CA$42.35
CA$62.67
+48.0%
14.6%CA$75.00CA$53.00CA$111.173
May ’24CA$40.30
CA$48.83
+21.2%
17.7%CA$61.00CA$41.50CA$103.783
Apr ’24CA$38.08
CA$49.50
+30.0%
19.4%CA$63.00CA$41.50CA$146.463
Mar ’24CA$27.30
CA$38.67
+41.6%
41.0%CA$61.00CA$26.00CA$118.953
Feb ’24CA$25.00
CA$27.50
+10.0%
5.5%CA$29.00CA$26.00CA$95.742
Jan ’24CA$20.12
CA$27.50
+36.7%
5.5%CA$29.00CA$26.00CA$81.702
Dec ’23CA$21.80
CA$27.50
+26.1%
5.5%CA$29.00CA$26.00CA$79.232

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/30 04:32
End of Day Share Price 2024/12/30 00:00
Earnings2024/09/28
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Hammond Power Solutions Inc. is covered by 6 analysts. 3 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Jim ByrneAcumen Capital Finance Partners Limited
Al NagarajByron Capital Markets
Matthew LeeCanaccord Genuity