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Hammond Manufacturing Company (HMM-A) Fair Value & Analysis

Industrials · CA · Market cap C$192M (≈ $139M) · ISIN CA40851T1021

What is Hammond Manufacturing Company really worth?

HM Hammond Manufacturing Company HMM-A · TO
PriceC$26.96
Fair ValueC$35.36
Upside+31.2%
Quality57/100

A solid business, trading 24% below our fair value of C$35.36.

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Strengths

Healthy Growth (revenue 5y +13.7 %/yr)
Low debt · generates free cash flow
Ranks above peers (12/14)

Risks

!Thin margins · 5.2% net margin
!Moderate moat 46/100
!Weak on dividend: 6 out of 100
Evidence: High Range C$25.85 – C$44.20

Fair value as of: Aug 30, 2026

From 26 valuation models · updated 6 days ago

Share price +21.0% over the past month.

What runs behind every stock

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

What matters now

  • Solid quality (57/100) at a price below fair value, the discount is the argument here, not the business quality.
  • The price sits in the lower half of our model range, the side with the larger margin of safety.
  • The data supports the verdict: every model runs on fully documented inputs.

Price vs Fair Value (5 years)

C$26.96 C$3.35 Fair Value C$35.36 Jun 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 30, 2026.

How to read this chart

60‑month range C$3.35 – C$26.96 · fair‑value band C$25.85 – C$44.20 · the C$26.96 price screens below the C$35.36 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 2 fiscal years are left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 30, 2026.

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Analysis

Hammond Manufacturing Company (HMM-A) currently trades at C$26.96, while our model-based Fair Value estimate is C$35.36, implying the stock looks roughly 23.8% undervalued today. The Quality Score stands at 57/100 (solid quality), in the Industrials sector. Bull case: the Multiples group reads highest at a median of C$35.36 per share, and 18 of the 26 models we run sit above the C$26.96 price. Bear case: the Asset-Based group reads lowest at C$10.31, and 8 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Hammond Manufacturing Company generated revenue of C$289M at a net margin of 5.2%. Revenue grew 12.0% year over year. It earns a return on equity of 11.5%. Net debt stands at C$27.2M. Fundamentals as of Aug 30, 2026

Our scenario range runs from C$25.85 (bear case) to C$44.20 (bull case); at C$26.96, the current price sits within 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 share trades near its 52-week high and 202% 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 31%, HMM-A screens cheaper 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$0.8969 per share, which is 2.5 % 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
FCF DCF C$22.96 C$31.04 C$41.32 81
Growth DCF C$22.94 C$29.83 C$38.02 80
Owner Earnings C$22.94 C$31.00 C$41.27 77
All 26 models by family
DCF Models
FCF DCF C$22.96 C$31.04 C$41.32 81
Owner Earnings C$22.94 C$31.00 C$41.27 77
5Y Revenue Exit C$24.66 C$37.08 C$52.94 72
5Y EBITDA Exit C$30.96 C$49.01 C$70.21 75
5Y P/E Exit C$25.19 C$38.09 C$51.67 71
10Y Revenue Exit C$23.09 C$33.17 C$46.74 67
10Y EBITDA Exit C$27.08 C$40.29 C$58.11 68
10Y P/E Exit C$23.92 C$33.78 C$45.90 64
Earnings-Based
Graham-Dodd C$11.45 C$37.94 C$50.76 64
Lynch FV C$8.57 C$12.24 C$15.92 61
PEG = 1.0 C$8.57 C$12.24 C$15.92 57
EPV C$18.29 C$20.06 C$21.51 74
Dividend Discount
Gordon GGM C$0.5500 C$0.9300 C$1.20 68
DDM Multi-Stage C$0.5500 C$0.8500 C$1.00 67
Multiples
P/E Multiple C$26.52 C$35.36 C$44.20 63
P/S Multiple C$21.47 C$28.63 C$35.78 58
P/B Multiple C$21.47 C$28.63 C$35.78 55
EV/EBIT C$36.75 C$47.85 C$58.95 66
EV/EBITDA C$41.50 C$54.18 C$66.86 67
EV/Revenue C$27.22 C$37.41 C$47.59 54
Asset-Based
NCAV (Graham) C$7.69 C$10.31 C$15.39 54
Growth DCF
Growth DCF C$22.94 C$29.83 C$38.02 80
Rev-Margin DCF C$24.66 C$37.11 C$51.65 73
Economic Profit
Residual Income C$12.35 C$13.34 C$15.75 76
ROIC Compounder C$18.80 C$21.65 C$24.78 72
Growth Earnings
Growth-Adj P/E C$22.42 C$32.03 C$41.63 67

Widest divergence: Multiples (C$35.36) versus Dividend Discount (C$0.8500). Highest evidence: FCF DCF (81).

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Key figures & financial health

P/E ratio 12.8 as of Jul 13, 2026
P/S ratio 0.66 P/E × margin
EPS (TTM) C$1.32 price ÷ EPS = P/E 12.8
Dividend yield 0.3% payout 6.6%
Net margin 5.1% FY2025
Return on equity 11.5% TTM
More key figures
Profitability
Return on assets (EBIT) 11.4% avg 5y
Operating margin 10.4% TTM
Growth
Revenue (TTM) C$289M TTM
Revenue growth (YoY) +12.0% 3y avg +7.6%
EPS growth (YoY) +12.8%
Balance sheet & cash flow
Free cash flow C$19.8M FY2025
Net debt C$27.2M FY2025 · ≈ 1.4 yrs of FCF

Figures from reported company fundamentals · as of Aug 30, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 57/100

Of which business quality 60 · Market factors (momentum, volatility) 90

Profitability 56
Margins and returns on capital today
Quality Growth 35
Are margins and returns improving?
Cashflow 59
Earnings quality: real cash, not paper profit
Fin. Strength 72
Balance sheet, leverage, solvency risk
Investment 50
Disciplined investing over empire-building
Low Volatility 68
Calm price path (market factor)
Momentum 100
Price trend over the last 3–12 months (market factor)
52W Momentum 100
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 Manufacturing Company Limited, together with its subsidiaries, designs, manufactures, and sells electrical and electronic components in Canada, the United States, the United Kingdom, and Australia.

Full company description

Hammond Manufacturing Company Limited, together with its subsidiaries, designs, manufactures, and sells electrical and electronic components in Canada, the United States, the United Kingdom, and Australia. The company offers electrical enclosures cabinets, including mild and stainless steel, aluminum, non-metallic, disconnect, modular freestanding, operator interface, and commercial enclosures, as well as wireway and trough, climate control, data communication infrastructure products, and general accessories; and small enclosures, such as diecast, plastic, extruded, industrial, and rack mounted enclosures, as well as general-purpose metal, chassis, and handles and accessories. It also provides rack mounting solutions comprising wall mount racks and cabinets, open frame network racks, server cabinet racks, and rack accessories; basic PDUs for racks and cabinets, industrial power strips, and related accessories; and transformers, which include power, line, audio, energy limiting, and instrument transformers, as well as chokes and reactors and guitar replacements. In addition, the company offers various standard products; product customization services; and technical support. It sells its products to electrical, electronic, and datacom original equipment manufacturers/MROs, as well as utilities and institutions through a network of agents and distributors. The company was founded in 1916 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 Manufacturing Company reported revenue of C$281M in FY2025 versus C$190M in FY2021, a compound +10.3%/yr. Reported net income was C$14.4M in FY2025, compounding +16.9%/yr from FY2021.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
C$281M
Latest YoY
+14.9%
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.
+7.6%
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.
+13.7%
Avg. revenue growth/yr (29Y) 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.
+2.2%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+13.6% (13.3 + 0.3)
Revenue +10.3%/yr
FY21 C$190M
FY22 C$226M
FY23 C$238M
FY24 C$245M
FY25 C$281M
Net income +16.9%/yr
FY21 C$7.7M
FY22 C$12.0M
FY23 C$18.8M
FY24 C$18.4M
FY25 C$14.4M
Character of growth · EPS growth decomposed (2014-2025) +23.2 % p.a.
Revenue per share +9.5 %

of which total revenue +9.5 % · buybacks/dilution +0.0 %

EBIT margin +9.8 %
Tax rate +0.8 %
Residual (interest, one-offs) +1.6 %

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).

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Cite: Fair Value Calculator (2026). "Hammond Manufacturing Company Fair Value". https://www.fairvalue-calculator.com/stock/HMM-A

Peer Group

Electrical Equipment & Parts · 543 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 57 · Above median
Fair Value upside +31% · Top 25%
Return on equity (TTM) 12% · Above median
Return on assets 6% · Top 25%
Net margin (TTM) 5% · Above median
Operating margin (TTM) 10% · Above median
Revenue growth 12% · Above median
Dividend yield (TTM) 0.3% · Bottom 25%
Debt / equity 0.03× · Lower than median

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

P/E (TTM) 12.8× · Cheaper than 75% of peers
P/B 1.05× · Cheaper than median
P/S (TTM) 0.48× · Cheaper than 75% of peers
P/FCF 7.0× · Pricier than median
EV/EBITDA 3.6× · Cheaper than 75% of peers

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
VALUE75 · sector 0
FUTURE60 · sector 56
PAST46 · sector 26
HEALTH99 · sector 97
DIVIDEND6 · sector 23

Insider activity: 40/100

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 30, 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 Manufacturing Company (HMM-A) overvalued or undervalued?
As of Aug 30, 2026, our model estimates a fair value of C$35.36 versus a price of C$26.96, about +31% upside (undervalued).
What is the fair value of HMM-A?
Our model-based fair value for Hammond Manufacturing Company is C$35.36 (as of Aug 30, 2026), built from audited fundamentals. The current price: C$26.96.
What is the quality score of HMM-A?
Hammond Manufacturing Company has a Quality Score of 57/100. 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 Manufacturing Company (HMM-A)?
Hammond Manufacturing Company reported trailing-twelve-month revenue of about C$289M (latest available figure, as of Aug 30, 2026).
What is the net profit margin of HMM-A?
The net profit margin of Hammond Manufacturing Company is about 5.2%, meaning it keeps roughly 5.2% of revenue as net income. Based on the latest reported figures.
Does Hammond Manufacturing Company pay a dividend?
Hammond Manufacturing Company currently shows a dividend yield of about 0.32% relative to its recent price (as of Aug 30, 2026).
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