Hammond Power Solutions, Inc. (HPS.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

Electrovaya, Inc.

Hammond Power Solutions, Inc.

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Electra Battery Materials Corp.

Black Swan Graphene, Inc.

LithiumBank Resources Corp.

Why is Hammond Power Solutions, Inc. ?

Strong Long Term Fundamental Strength with a 45.15% CAGR growth in Operating Profits

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 44.16
The company has been able to generate a Return on Capital Employed (avg) of 28.26% signifying high profitability per unit of total capital (equity and debt)
INTEREST(HY) At CAD 1.2 MM has Grown at 193.87%
INTEREST COVERAGE RATIO(Q) Lowest at 3,167.32
RAW MATERIAL COST(Y) Grown by 6.82% (YoY)

With ROE of 24.38%, it has a attractive valuation with a 3.18 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -9.88%, its profits have risen by 20.8% ; the PEG ratio of the company is 0.6

Majority shareholders : FIIs

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -9.88% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Hammond Power Solutions, Inc. 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 Power Solutions, Inc. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Hammond Power Solutions, Inc.

141.18%

0.22

49.69%

S&P/TSX 60

21.87%

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)

20.72%

EBIT Growth (5y)

51.29%

EBIT to Interest (avg)

44.16

Debt to EBITDA (avg)

0.16

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.52

Tax Ratio

26.44%

Dividend Payout Ratio

16.23%

Pledged Shares

Institutional Holding

0.18%

ROCE (avg)

28.26%

ROE (avg)

19.88%

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

6.56

EV to EBIT

20.56

EV to EBITDA

17.98

EV to Capital Employed

6.06

EV to Sales

2.69

PEG Ratio

1.47

Dividend Yield

ROCE (Latest)

29.47%

ROE (Latest)

23.41%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

0What is working for the Company

NO KEY POSITIVE TRIGGERS

-20What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 15.63 MM

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.79 times

INTEREST COVERAGE RATIO(Q)

Lowest at 2,545.1

RAW MATERIAL COST(Y)

Grown by 11.42% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 15.69 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.28 times

INTEREST(Q)

Highest at CAD 1.13 MM

Here's what is not working for Hammond Power Solutions, Inc.

Interest

At CAD 1.13 MM has Grown at 47.53%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 2,545.1

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Inventory Turnover Ratio

Lowest at 3.79 times and Fallen

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

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Operating Cash Flow

Lowest at CAD 15.63 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

Highest at CAD 1.13 MM

in the last five periods and Increased by 47.53% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Debt-Equity Ratio

Highest at 15.69 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 5.28 times

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 11.42% (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