# Hammond Manufacturing Company Limited (HMM-A.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Electrical Equipment. Price C$26.96, market value C$306 million.

## Valuation
- **P/E (trailing): 16.5×** (5-yr avg 5.8×, 3-yr avg 6.7×). Hammond Manufacturing Company Limited trades at 16.5× trailing earnings, well above its own five-year average of 5.8×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×.
- **Price / sales: 1.0×**. Each dollar of revenue is priced at 1.0×.
- **Price / book: 2.1×**. The shares trade at 2.1× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 8.7×**. Enterprise value is 8.7× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 6.9%** (5-yr avg 2.4%). Free cash flow equals 6.9% of the market value, above its five-year average of 2.4%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 6.0%**. The inverse of the P/E: 6.0% of the price is earned each year.

## Profitability
- **Gross margin: 34.9%**. Hammond Manufacturing Company Limited keeps 34.9% of revenue after the direct cost of what it sells.
- **Operating margin: 9.0%**. 9.0% of revenue is left after running the business.
- **Net margin: 5.1%**. 5.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 10.9%**. 10.9% on shareholders' equity is solid.
- **Return on invested capital: 13.6%**. Return on all capital, debt included, is 13.6%.
- **Return on assets: 7.7%**. Each dollar of assets produces 7.7% of profit.

## Growth
- **Revenue growth (1 yr): 14.9%** (3-yr 7.6%/yr, 5-yr 13.7%/yr). Revenue grew 14.9% over the last year, against 13.7% a year compounded over five years.
- **EPS growth (1 yr): -21.6%** (3-yr 6.2%/yr, 5-yr 13.3%/yr). Earnings per share fell 21.6%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.46**. Debt is 0.46 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.96** (quick 1.05). Current assets cover the next year's liabilities 1.96 times.
- **Altman Z-score: 4.27**. A Z-score of 4.27 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.22%** (C$0.09 per share, trailing). Hammond Manufacturing Company Limited yields 0.22%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 5%** (3% of free cash flow). 5% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 16**. 16 straight years of increases, a record that survived at least one recession.
- **Dividend growth (5 yr): 8.4%/yr** (1-yr 0.0%). The dividend has grown 8.4% a year over five years.

## Price and momentum
- **Total return (1 yr): 200.1%** (YTD 141.2%, 3-mo 45.8%). The shares are up 200.1% over twelve months including dividends.
- **From 52-week high: -1.0%** (196.6% above the low). Trading within 5% of its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 76**. An RSI of 76 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.01** (volatility 45%). Beta of 0.01 against the S&P/TSX Composite: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=HMM-A.TO · Page: https://foliofundamentals.com/stocks/hmm-a.to

Not investment advice.