Added to YB: 2026-06-01
Pitch date: 2026-05-28
HPS-A.TO [bullish]
Hammond Power Solutions Inc.
Author Info
Outlier Capital is where I share my highest-conviction ideas, portfolio updates, and investment research. Sign up for the newsletter.
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 4.0B
Pitch Price
N/A
Price Target
3.3K (+1004%)
Dividend
0.33%
EV/EBITDA
34.39
P/E
60.33
EV/Sales
4.16
Sector
Electrical Equipment
Category
growth
The Boring Power Infrastructure Company That Is Becoming a Monster 10x Compounder: Hammond Power Solutions ($HPS.A)
HPS-A.TO: Boring power infra play on AI/electrification bottleneck. FY25 rev C$898.3m, adj EBITDA C$133.3m, 30.3% GM, EPS C$6.07 (from C$1.29 in '21). Q1'26 rev C$264.8m (+31.5%), backlog +94.6% YoY on data center orders. AEG acquisition (C$365m EV) expands into power electronics platform. ~C$3.7bn cap post-rerate. 10x case over 5-7yrs needs backlog conversion, margin recovery, AEG integration. Risks: rich valuation, GM decline, weak OCF (C$26.9m), leverage.
Read full article (6 min)