Hammond Manufacturing Co. Ltd. (HMM.A) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Hammond Manufacturing Co. Ltd.

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Why is Hammond Manufacturing Co. Ltd. ?

High Management Efficiency with a high ROCE of 16.91%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 8.57

Positive results in Jun 26

OPERATING CASH FLOW(Y) Highest at CAD 35.92 MM
INVENTORY TURNOVER RATIO(HY) Highest at 2.99 times
INTEREST COVERAGE RATIO(Q) Highest at 1,567.51

With ROE of 10.98%, it has a attractive valuation with a 1.03 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 122.32%, its profits have fallen by -19.3%

Market Beating performance in long term as well as near term

Along with generating 122.32% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Hammond Manufacturing Co. Ltd. should be less than 10%
Overall Portfolio exposure to Electronics & Appliances should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Hammond Manufacturing Co. Ltd. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hammond Manufacturing Co. Ltd.

122.77%

2.67

45.72%

S&P/TSX 60

29.63%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.94%

EBIT Growth (5y)

13.34%

EBIT to Interest (avg)

8.44

Debt to EBITDA (avg)

0.90

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.56

Tax Ratio

24.03%

Dividend Payout Ratio

4.72%

Pledged Shares

Institutional Holding

ROCE (avg)

17.23%

ROE (avg)

15.11%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.03

EV to EBIT

6.23

EV to EBITDA

4.18

EV to Capital Employed

1.03

EV to Sales

0.50

PEG Ratio

Dividend Yield

0.12%

ROCE (Latest)

16.57%

ROE (Latest)

10.98%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

18What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 35.92 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 2.99 times

INTEREST COVERAGE RATIO(Q)

Highest at 1,567.51

RAW MATERIAL COST(Y)

Fallen by -13.52% (YoY

CASH AND EQV(HY)

Highest at CAD 73.11 MM

DEBT-EQUITY RATIO (HY)

Lowest at 15.56 %

NET SALES(Q)

Highest at CAD 85 MM

OPERATING PROFIT(Q)

Highest at CAD 13.61 MM

OPERATING PROFIT MARGIN(Q)

Highest at 16.01 %

PRE-TAX PROFIT(Q)

Highest at CAD 9.85 MM

NET PROFIT(Q)

Highest at CAD 7.3 MM

EPS(Q)

Highest at CAD 0.64

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 4.66%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.91 times

DIVIDEND PER SHARE(HY)

Lowest at CAD 6.91

Here's what is working for Hammond Manufacturing Co. Ltd.

Interest Coverage Ratio

Highest at 1,567.51

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Pre-Tax Profit

At CAD 9.85 MM has Grown at 97.24%

over average net sales of the previous four periods of CAD 4.99 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (CAD MM)

Inventory Turnover Ratio

Highest at 2.99 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow

Highest at CAD 35.92 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Net Sales

Highest at CAD 85 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Operating Profit

Highest at CAD 13.61 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 16.01 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 9.85 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 7.3 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Net Profit

At CAD 7.3 MM has Grown at 94.06%

over average net sales of the previous four periods of CAD 3.76 MM

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 0.64

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Cash and Eqv

Highest at CAD 73.11 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 15.56 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -13.52% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 3.09 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Hammond Manufacturing Co. Ltd.

Debtors Turnover Ratio

Lowest at 6.91 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at CAD 6.91

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 4.66%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)