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Hammond Power Solutions, Inc.

  • Market Cap: Small Cap
  • Industry: Electronics & Appliances
  • ISIN: CA4085491039
CAD
172.42
1.52 (0.89%)

Dec 04

TSE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
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.
Hammond Power Solutions, Inc.
Ballard Power Systems, Inc.
Exro Technologies, Inc.
NanoXplore, Inc.
Lithium Royalty Corp.
Graphene Manufacturing Group Ltd.
Black Swan Graphene, Inc.
Electra Battery Materials Corp.
LithiumBank Resources Corp.
Why is Hammond Power Solutions, Inc. ?
1
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)
2
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
3
Majority shareholders : FIIs
4
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
stock-recommendationReal-Time Research Report
Verdict Report
How much should you hold?
  1. Overall Portfolio exposure to Hammond Power Solutions, Inc. should be less than 10%
  2. 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.
24.48%
0.22
49.69%
S&P/TSX 60
19.1%
1.54
14.62%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
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)
0
Sales to Capital Employed (avg)
2.52
Tax Ratio
26.44%
Dividend Payout Ratio
16.23%
Pledged Shares
0
Institutional Holding
0.18%
ROCE (avg)
28.26%
ROE (avg)
19.88%
stock-recommendationValuation
Valuation Scorecard stock-summary
stock-recommendation
Valuation grade scale :

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

Valuation Key Factors stock-summary
Factor
Value
P/E Ratio
16
Industry P/E
Price to Book Value
3.90
EV to EBIT
11.70
EV to EBITDA
10.23
EV to Capital Employed
3.74
EV to Sales
1.57
PEG Ratio
0.77
Dividend Yield
NA
ROCE (Latest)
31.94%
ROE (Latest)
24.38%
stock-recommendationTechnicals
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
No Trend
OBV
Mildly Bearish
No Trend
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend
Financial Trend Scorecard stock-summary
stock-recommendation
Financial Trend scale:

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

2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)

Highest at 24.47%

NET SALES(Q)

Highest at CAD 224.42 MM

-22What is not working for the Company
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

DEBT-EQUITY RATIO (HY)

Highest at 11.15 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.3%

OPERATING PROFIT(Q)

Lowest at CAD 24.32 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.84 %

PRE-TAX PROFIT(Q)

Lowest at CAD 18.31 MM

NET PROFIT(Q)

Lowest at CAD 13.38 MM

EPS(Q)

Lowest at CAD 1.12

Here's what is working for Hammond Power Solutions, Inc.
Net Sales
Highest at CAD 224.42 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CAD MM)

Dividend Payout Ratio
Highest at 24.47%
in the last five years
MOJO Watch
Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation
Highest at CAD 4.64 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 Power Solutions, Inc.
Interest
At CAD 1.2 MM has Grown at 193.87%
over previous Semi-Annual period
MOJO Watch
Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio
Lowest at 3,167.32
in the last five periods
MOJO Watch
The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Pre-Tax Profit
At CAD 18.31 MM has Fallen at -40.01%
over average net sales of the previous four periods of CAD 30.52 MM
MOJO Watch
Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit
At CAD 13.38 MM has Fallen at -40.42%
over average net sales of the previous four periods of CAD 22.45 MM
MOJO Watch
Near term Net Profit trend is very negative

Net Profit (CAD MM)

Operating Profit
Lowest at CAD 24.32 MM
in the last five periods
MOJO Watch
Near term Operating Profit trend is negative

Operating Profit (CAD MM)

Operating Profit Margin
Lowest at 10.84 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit
Lowest at CAD 18.31 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 13.38 MM
in the last five periods
MOJO Watch
Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS
Lowest at CAD 1.12
in the last five periods
MOJO Watch
Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio
Highest at 11.15 %
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 5.3%
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 6.82% (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

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