Hammond Power Solutions Inc. (HPS-A.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-46.6%

CA$117.84

vs CA$220.81 price

Levered DCF

CA$26.66

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

3.64

Safe zone

Rating

B-

Overall 2 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	26.27×	21.31×	15.33×	5.31×	9.29×	7.06×	7.76×	-5.18×
P/B	5.39×	4.95×	4.22×	1.35×	1.12×	0.87×	0.82×	0.62×
P/S	2.11×	1.93×	1.37×	0.43×	0.37×	0.31×	0.25×	0.21×
EV / EBITDA	15.58×	13.55×	9.97×	3.26×	4.94×	3.73×	3.99×	4.55×
Gross margin	30.2%	32.8%	32.5%	29.6%	26.9%	27.0%	24.5%	23.2%
Operating margin	11.6%	12.5%	12.2%	10.6%	6.1%	6.8%	5.7%	4.4%
Net margin	8.0%	9.1%	8.9%	8.0%	4.0%	4.4%	3.2%	-4.1%
Current ratio	1.86×	1.99×	1.87×	1.96×	1.57×	1.79×	1.52×	1.47×
Debt / equity	0.23×	0.12×	0.16×	0.1×	0.22×	0.22×	0.4×	0.3×
Interest coverage	26.84×	79.26×	65.7×	37.24×	17.79×	17.68×	11.81×	9.42×
Dividend yield	0.7%	0.8%	0.7%	1.9%	2.8%	4.0%	3.6%	4.2%
Payout ratio	18.1%	16.2%	10.3%	10.2%	26.4%	28.4%	28.3%	-21.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	20.5%	23.2%	27.5%	25.3%	12.0%	12.3%	10.6%	-11.9%
Return on invested capital	17.3%	21.1%	24.4%	23.8%	10.7%	10.5%	9.1%	6.7%
Return on assets	12.1%	14.5%	15.5%	14.8%	6.5%	7.4%	5.4%	-6.3%
Free cash flow yield	-0.7%	1.6%	2.4%	11.6%	10.2%	14.8%	15.3%	6.2%
Earnings yield	3.8%	4.7%	6.5%	18.8%	10.7%	14.1%	12.9%	-19.3%
Enterprise value	CA$1.9B	CA$1.5B	CA$957.1M	CA$227.6M	CA$148.5M	CA$110.1M	CA$110.9M	CA$84M
Net debt / EBITDA	0.33×	0.02×	-0.16×	-0.15×	0.24×	0.36×	0.75×	0.92×
Cash conversion cycle (days)	109	73	60	73	65	73	64	75