Added to YB: 2025-05-08
Pitch date: 2025-03-20
HPS-A.TO [bullish]
Hammond Power Solutions Inc.
+108.7%
current return
Author Info
No bio for this author
Company Info
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.
Market Cap
CAD 1.4B
Pitch Price
CAD 84.22
Price Target
108.00 (-39%)
Dividend
0.91%
EV/EBITDA
11.93
P/E
18.17
EV/Sales
1.79
Sector
Electrical Equipment
Category
value
Hammond Power Solutions Inc. - $HPS-A.TO
HPS-A.TO: North America's largest dry-type transformer maker trading at 6.7x EV/NTM EBITDA after 48% drop. Strong demand for custom engineered products, 30%+ margins/ROIC. Tariff concerns overblown - industry-wide capacity constraints limit competitive threat. Near-term PT C$108 (+30%), long-term rerating to 16x peer multiple. Electrification trend supports growth.
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