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

Hammond Manufacturing Co. Ltd.

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Graphene Manufacturing Group Ltd.

Electra Battery Materials Corp.

Black Swan Graphene, Inc.

LithiumBank Resources Corp.

Why is Hammond Power Solutions, Inc. ?

The company has declared negative results for the last 5 consecutive quarters

OPERATING CASH FLOW(Y) Lowest at CAD 29.05 MM
ROCE(HY) Lowest at 17.3%
DEBT-EQUITY RATIO (HY) Highest at 15.85 %

With ROE of 17.69%, it has a expensive valuation with a 7.70 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 115.80%, its profits have fallen by -27%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Hammond Power Solutions, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Hammond Power Solutions, Inc.

103.3%

2.13

70.25%

S&P/TSX 60

28.13%

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)

25.11%

EBIT Growth (5y)

47.66%

EBIT to Interest (avg)

45.70

Debt to EBITDA (avg)

Net Debt is too low

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

2.40

Tax Ratio

25.33%

Dividend Payout Ratio

18.13%

Pledged Shares

Institutional Holding

0.18%

ROCE (avg)

30.98%

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

7.70

EV to EBIT

30.05

EV to EBITDA

24.41

EV to Capital Employed

7.28

EV to Sales

2.99

PEG Ratio

Dividend Yield

ROCE (Latest)

24.22%

ROE (Latest)

17.69%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bullish

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

4What is working for the Company

DIVIDEND PAYOUT RATIO(Y)

Highest at 34.85%

RAW MATERIAL COST(Y)

Fallen by -2.76% (YoY

NET SALES(Q)

Highest at CAD 324.8 MM

-27What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 29.05 MM

ROCE(HY)

Lowest at 17.3%

DEBT-EQUITY RATIO (HY)

Highest at 15.85 %

INTEREST(Q)

At CAD 1.54 MM has Grown at 48.65%

INTEREST COVERAGE RATIO(Q)

Lowest at 1,899.42

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.13 times

OPERATING PROFIT MARGIN(Q)

Lowest at 9.02 %

NET PROFIT(Q)

Lowest at CAD 12.53 MM

EPS(Q)

Lowest at CAD 0.79

Here's what is working for Hammond Power Solutions, Inc.

Net Sales

Highest at CAD 324.8 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Sales

At CAD 324.8 MM has Grown at 35.1%

over average net sales of the previous four periods of CAD 240.42 MM

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Dividend Payout Ratio

Highest at 34.85%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -2.76% (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

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

Operating Cash Flow

Lowest at CAD 29.05 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Interest

At CAD 1.54 MM has Grown at 48.65%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (CAD MM)

Interest Coverage Ratio

Lowest at 1,899.42

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Debt-Equity Ratio

Highest at 15.85 % and Grown

In each half year 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

Operating Profit Margin

Lowest at 9.02 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Net Profit

Lowest at CAD 12.53 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.79

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Lowest at 5.13 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio