# Hammond Power Solutions Inc. (HPS-A.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Electrical Equipment. Price C$242.12, market value C$2.9 billion.

## Valuation
- **P/E (trailing): 46.7×** (5-yr avg 15.3×, 3-yr avg 20.8×). Hammond Power Solutions Inc. trades at 46.7× trailing earnings, well above its own five-year average of 15.3×: investors are paying up relative to the company's past. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 20.4×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.7×**. Each dollar of revenue is priced at 2.7×.
- **Price / book: 7.5×**. The shares trade at 7.5× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 25.4×**. Enterprise value is 25.4× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 0.0%** (5-yr avg 5.2%). Free cash flow equals 0.0% of the market value, below its five-year average of 5.2%, so the shares are pricier on cash than usual.
- **Earnings yield: 2.1%**. The inverse of the P/E: 2.1% of the price is earned each year.

## Profitability
- **Gross margin: 30.3%**. Hammond Power Solutions Inc. keeps 30.3% of revenue after the direct cost of what it sells.
- **Operating margin: 9.3%**. 9.3% of revenue is left after running the business.
- **Net margin: 8.0%**. 8.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 20.5%**. 20.5% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 19.9%**. Return on all capital, debt included, is 19.9%: comfortably above what that capital costs.
- **Return on assets: 10.3%**. Each dollar of assets produces 10.3% of profit.

## Growth
- **Revenue growth (1 yr): 13.9%** (3-yr 17.2%/yr, 5-yr 22.8%/yr). Revenue grew 13.9% over the last year, against 22.8% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 1.0%** (3-yr 17.2%/yr, 5-yr 38.3%/yr). Earnings per share rose 1.0%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.23**. Debt is 0.23 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Current ratio: 1.86** (quick 1.06). Current assets cover the next year's liabilities 1.86 times.
- **Altman Z-score: 10.27**. A Z-score of 10.27 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 4/9**. 4 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 0.48%** (C$1.10 per share, trailing). Hammond Power Solutions Inc. yields 0.48%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 18%**. 18% 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): 26.5%/yr** (1-yr 12.8%). The dividend has compounded at 26.5% a year over five years, doubling roughly every 3 years at that pace.

## Price and momentum
- **Total return (1 yr): 101.3%** (YTD 52.2%, 3-mo -19.4%). The shares are up 101.3% over twelve months including dividends.
- **From 52-week high: -33.7%** (117.9% above the low). Trading 34% below its 52-week high, deep in a drawdown.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 46**. An RSI of 46 is neutral.
- **Beta (1 yr): 1.51** (volatility 68%). Beta of 1.51 against the S&P/TSX Composite: the shares move much more than the market.

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

Not investment advice.