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Hammond Power Solutions Inc (HPS-A) Fair Value & Analysis

Industrials · CA · Market cap C$3.7B (≈ $2.7B) · ISIN CA4085491039

What is Hammond Power Solutions Inc really worth?

HP Hammond Power Solutions Inc HPS-A · TO
PriceC$229.86
Fair ValueC$71.91
Upside−68.7%
Quality52/100

A solid business, but trading 220% above our fair value of C$71.91.

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Risks

!Expensive Growth (revenue 5y +22.8 %/yr)
!Thin margins · 6.8% net margin
!Low debt · negative free cash flow
!Mixed vs. peers (6/13)
!Moderate moat 58/100
!Evidence only medium, so the estimate is less certain
!The models disagree: range C$50.34 to C$159.29
!Weak on dividend: 10 out of 100

For context

·0.48% dividend yield
Evidence: Medium Range C$50.34 – C$159.29

Fair value as of: Aug 13, 2026

From 17 valuation models · updated 22 days ago

Share price −14.5% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (C$159.29). The favourable scenario is already priced in.
  • The model range is unusually wide (C$50.34 to C$159.29). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

C$359.85 C$8.91 Fair Value C$71.91 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range C$8.91 – C$359.85 · fair‑value band C$50.34 – C$159.29 · the C$229.86 price screens above the C$71.91 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Hammond Power Solutions Inc (HPS-A) currently trades at C$229.86, while our model-based Fair Value estimate is C$71.91, implying the stock looks roughly 219.7% overvalued today. The Quality Score stands at 52/100 (solid quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of C$152.24 per share, and 1 of the 17 models we run sit above the C$229.86 price. Bear case: the Dividend Discount group reads lowest at C$21.70, and 16 of the 17 models stay below the price. Evidence for this calculation is medium.

Over the trailing twelve months, Hammond Power Solutions Inc generated revenue of C$962M at a net margin of 6.8%. Revenue grew 31.5% year over year. It earns a return on equity of 18.8%. Net debt stands at C$40.5M. Fundamentals as of Aug 13, 2026

Our scenario range runs from C$50.34 (bear case) to C$159.29 (bull case); at C$229.86, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 36% below its 52-week high and 116% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −69%, HPS-A screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly C$2.98 per share, which is 4.2 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Owner Earnings C$80.58 C$139.22 C$237.24 74
EPV C$83.12 C$95.61 C$106.37 74
ROIC Compounder C$93.20 C$121.08 C$155.64 72
All 17 models by family
DCF Models
Owner Earnings C$80.58 C$139.22 C$237.24 74
Earnings-Based
Graham-Dodd C$53.82 C$249.21 C$342.27 64
Lynch FV C$65.66 C$93.80 C$121.94 61
PEG = 1.0 C$65.66 C$93.80 C$121.94 57
EPV C$83.12 C$95.61 C$106.37 74
Dividend Discount
Gordon GGM C$12.60 C$25.11 C$38.02 67
DDM Multi-Stage C$12.60 C$21.70 C$26.50 67
Multiples
P/E Multiple C$124.67 C$166.22 C$207.78 63
P/S Multiple C$100.92 C$134.56 C$168.20 58
P/B Multiple C$100.92 C$134.56 C$168.20 55
EV/EBIT C$149.39 C$197.82 C$246.26 66
EV/EBITDA C$137.04 C$181.36 C$225.68 67
EV/Revenue C$107.79 C$152.24 C$196.68 54
Asset-Based
NCAV (Graham) C$19.29 C$25.85 C$38.57 54
Economic Profit
Residual Income C$50.68 C$69.26 C$312.33 64
ROIC Compounder C$93.20 C$121.08 C$155.64 72
Growth Earnings
Growth-Adj P/E C$104.85 C$149.78 C$194.72 67

Widest divergence: Multiples (C$152.24) versus Dividend Discount (C$21.70). Highest evidence: Owner Earnings (74).

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Key figures & financial health

P/E ratio 56.8 as of Jul 14, 2026
P/S ratio 4.57 P/E × margin
EPS (TTM) C$5.51 price ÷ EPS = P/E 56.8
Dividend yield 0.5% payout 20.0%
Net margin 8.0% FY2025
Return on equity 18.8% TTM
More key figures
Profitability
Return on assets (EBIT) 17.6% avg 5y
Operating margin 11.0% TTM
Growth
Revenue (TTM) C$962M TTM
Revenue growth (YoY) +31.5% 3y avg +17.2%
EPS growth (YoY) −25.5%
Balance sheet & cash flow
Free cash flow −C$12.5M FY2025
Net debt C$40.5M FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 52/100

Of which business quality 52 · Market factors (momentum, volatility) 53

Profitability 74
Margins and returns on capital today
Quality Growth 32
Are margins and returns improving?
Cashflow 8
Earnings quality: real cash, not paper profit
Fin. Strength 81
Balance sheet, leverage, solvency risk
Investment 30
Disciplined investing over empire-building
Low Volatility 24
Calm price path (market factor)
Momentum 61
Price trend over the last 3–12 months (market factor)
52W Momentum 74
Distance to the 52-week high (market factor)
Net Issuance 81
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, and India.

Full company description

Hammond Power Solutions Inc., together with its subsidiaries, engages in the design, manufacture, and sale of various transformers in Canada, the United States, Mexico, and India. It offers buck-boost, control, distribution, drive isolation, encapsulated, furnace, multi-pulse, pad mounted, and regulating transformers; and active harmonic filters, autotransformers, dV/dT filters, and reactors, as well as medium voltage distribution and unitized substations products. The company also offers DC power supplies. It serves renewable energy, commercial infrastructure, industrial, off-shore drilling, mining and construction, petro-chemical, power grid infrastructure, and EV charging industries. Hammond Power Solutions Inc. was founded in 1917 and is headquartered in Guelph, Canada.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Hammond Power Solutions Inc reported revenue of C$898M in FY2025 versus C$380M in FY2021, a compound +24.0%/yr. Reported net income was C$72.2M in FY2025, compounding +47.7%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.

Growth Quality 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
C$898M
Latest YoY
+13.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+17.2%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+22.8%
Avg. revenue growth/yr (24Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+10.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+38.9% (38.4 + 0.5)
Revenue +24.0%/yr
FY21 C$380M
FY22 C$558M
FY23 C$710M
FY24 C$788M
FY25 C$898M
Net income +47.7%/yr
FY21 C$15.2M
FY22 C$44.8M
FY23 C$63.4M
FY24 C$71.5M
FY25 C$72.2M
Character of growth · EPS growth decomposed (2014-2025) +39.0 % p.a.
Revenue per share +12.8 %

of which total revenue +13.0 % · buybacks/dilution −0.2 %

EBIT margin +13.8 %
Tax rate +4.9 %
Residual (interest, one-offs) +3.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

HPS-A screens 220% overvalued. Compare with Contemporary Amperex Technology Co →

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Cite: Fair Value Calculator (2026). "Hammond Power Solutions Inc Fair Value". https://www.fairvalue-calculator.com/stock/HPS-A

Peer Group

Electrical Equipment & Parts · 542 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 52 · Below median
Fair Value upside −69% · Below median
Return on equity (TTM) 19% · Top 25%
Return on assets 10% · Top 25%
Net margin (TTM) 7% · Above median
Operating margin (TTM) 11% · Above median
Revenue growth 32% · Top 25%
Dividend yield (TTM) 0.5% · Bottom 25%
Debt / equity 0.01× · Lower than median

Valuation Multiples vs Electrical Equipment & Parts median · lower = cheaper

P/E (TTM) 56.8× · Pricier than 75% of peers
P/B 7.65× · Pricier than 75% of peers
P/S (TTM) 2.80× · Pricier than median
EV/EBITDA 24.1× · Pricier than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE100 · sector 56
PAST75 · sector 26
HEALTH99 · sector 97
DIVIDEND10 · sector 23

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Electrical Equipment & Parts stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Contemporary Amperex Technology Co 3750 HK$652.50 HK$394.19 −40%
ABB Ltd ABBN CHF 80.10 CHF 28.70 −64%
Delta Electronics (Thailand) Public Company TDED 10.40 SGD 1.47 SGD −86%
Vertiv Holdings VRT $257.08 $63.13 −75%
LG Energy Solution, Ltd 373220 365,500 KRW 201,455 KRW −45%
Prysmian S.p.A PRY €117.10 €84.15 −28%
Legrand SA LR €139.65 €78.82 −44%
Sungrow Power Supply Co 300274 ¥86.40 ¥123.83 +43%
Hubbell Incorporated HUBB $443.31 $285.77 −36%
Shenzhen Inovance Technology Co 300124 ¥61.07 ¥33.04 −46%

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Frequently asked questions

Is Hammond Power Solutions Inc (HPS-A) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of C$71.91 versus a price of C$229.86, about −69% upside (overvalued).
What is the fair value of HPS-A?
Our model-based fair value for Hammond Power Solutions Inc is C$71.91 (as of Aug 13, 2026), built from audited fundamentals. The current price: C$229.86.
What is the quality score of HPS-A?
Hammond Power Solutions Inc has a Quality Score of 52/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Hammond Power Solutions Inc (HPS-A)?
Hammond Power Solutions Inc reported trailing-twelve-month revenue of about C$962M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of HPS-A?
The net profit margin of Hammond Power Solutions Inc is about 6.8%, meaning it keeps roughly 6.8% of revenue as net income. Based on the latest reported figures.
Does Hammond Power Solutions Inc pay a dividend?
Hammond Power Solutions Inc currently shows a dividend yield of about 0.48% relative to its recent price (as of Aug 13, 2026).
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