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

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Electrovaya, Inc.

Hammond Manufacturing Co. Ltd.

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Lithium Royalty Corp.

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Black Swan Graphene, Inc.

Electra Battery Materials Corp.

LithiumBank Resources Corp.

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

Negative results in Jun 25

ROCE(HY) Lowest at 15.17%
RAW MATERIAL COST(Y) Grown by 10.79% (YoY)
DEBTORS TURNOVER RATIO(HY) Lowest at 6.92%

With ROE of 14.13%, it has a attractive valuation with a 0.63 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 7.87%, its profits have fallen by -2.2%

Underperformed the market in the last 1 year

The stock has generated a return of 7.87% in the last 1 year, much lower than market (S&P/TSX 60) returns of 22.54%

Real-Time Research Report

Verdict Report

How much should you hold?

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, Low Return

Absolute

Risk Adjusted

Volatility

Hammond Manufacturing Co. Ltd.

10.85%

-0.11

35.26%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

12.43%

EBIT Growth (5y)

27.56%

EBIT to Interest (avg)

8.57

Debt to EBITDA (avg)

1.10

Net Debt to Equity (avg)

0.13

Sales to Capital Employed (avg)

1.59

Tax Ratio

25.44%

Dividend Payout Ratio

3.70%

Pledged Shares

Institutional Holding

ROCE (avg)

16.91%

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

0.69

EV to EBIT

3.95

EV to EBITDA

2.84

EV to Capital Employed

0.73

EV to Sales

0.40

PEG Ratio

Dividend Yield

0.20%

ROCE (Latest)

18.43%

ROE (Latest)

14.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

2What is working for the Company

CASH AND EQV(HY)

Highest at CAD 53.09 MM

NET SALES(Q)

Highest at CAD 71.33 MM

-11What is not working for the Company

ROCE(HY)

Lowest at 15.17%

RAW MATERIAL COST(Y)

Grown by 10.79% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.92%

OPERATING PROFIT(Q)

Lowest at CAD 8.88 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 12.45 %

PRE-TAX PROFIT(Q)

Lowest at CAD 5.26 MM

NET PROFIT(Q)

Lowest at CAD 3.9 MM

EPS(Q)

Lowest at CAD 0.34

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

Net Sales

Highest at CAD 71.33 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv

Highest at CAD 53.09 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at CAD 2.75 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.

Operating Profit

Lowest at CAD 8.88 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin

Lowest at 12.45 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at CAD 5.26 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 3.9 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.34

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Lowest at 6.92%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 10.79% (YoY)

MOJO Watch

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

Raw Material Cost as a percentage of Sales