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Data-driven stock valuation

Hammond Power Solutions Inc (HPS-A) fair value: what the stock is really worth

As of Oct 19, 2026: fair value (intrinsic value) of Hammond Power Solutions Inc stock C$49.57, price C$240, upside -79.3%, quality 52 out of 100. Rating: strongly overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? Yes
  3. Add to watchlist

Industrials · CA · ISIN CA4085491039

HP Hammond Power Solutions Inc logo Some data Oct 13, 2026

Hammond Power Solutions Inc

HPS-A · TO

Stretched ValuationStrong overvaluation with only moderate quality.

Our calculation puts a fair price 79% below what the stock costs today.

Low debt
Quality 52/100
Expensive Growth (revenue 5y +22.8 %/yr in CAD)
Thin margins · 5.8% net margin (TTM)
0.5% dividend yield · Token dividend
Mixed vs. peers (6/13)
Moderate moat 53/100 · thin data
Some data
Fair value C$49.57 · Strongly overvalued (−79.3%)
Negative free cash flow

What runs behind every stock

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

Price vs Fair Value

C$359.85 C$9.32 Fair Value C$49.57 Jul 2021 Oct 2026

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

How to read this chart

60‑month range C$9.32 – C$359.85 · fair‑value band C$36.27 – C$89.15 · the C$239.56 price screens above the C$49.57 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 13, 2026.

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Company profile

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.

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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.

Stock analysis

Hammond Power Solutions Inc (HPS-A) currently trades at C$239.56, while our model-based Fair Value estimate is C$49.57, 79.3% below the price, so the stock looks overvalued today.

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Valuation

Bull case: the Multiples group reads highest at a median of C$123.01 per share, and 0 of the 17 models we run sit above the C$239.56 price.

Bear case: the Asset-Based group reads lowest at C$12.80, and 17 of the 17 models stay below the price. Data coverage for this calculation is medium.

Scenario range: C$36.27 (bear) to C$89.15 (bull), the price of C$239.56 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 52/100 (solid quality), in the Industrials sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

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.

Key figures

Market cap C$3.4B (≈ $2.4B) Mid · P/E ratio 55.6 · P/S ratio 3.22 · EPS (TTM) C$5.16 · Dividend yield 0.5% · Net margin 5.8% · Return on equity 17.3% · Return on assets (EBIT) 17.6%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (low confidence).

What moves the price

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 33% below its 52-week high and 75% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Industrials peers we cover trades at −38% fair-value upside, at −79%, HPS-A screens richer than that median.

Fair Value models

Bear C$36.27 Fair Value C$49.57 Bull C$89.15
Price C$239.56 · Upside -79.3%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2025 figures (about 10 months old). Earnings retained since then (C$3.26 per share) are deliberately not added. 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. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
Owner Earnings C$16.80 C$26.96 C$43.59 74
EPV C$62.08 C$71.10 C$78.82 72
Residual Income C$36.27 C$49.57 C$89.15 71
All 17 models by family
DCF Models
Owner Earnings C$16.80 C$26.96 C$43.59 74
Earnings-Based
Graham-Dodd C$41.26 C$191.05 C$262.39 61
Lynch FV C$50.34 C$71.91 C$93.48 58
PEG = 1.0 C$50.34 C$71.91 C$93.48 55
EPV C$62.08 C$71.10 C$78.82 72
Dividend Discount
Gordon GGM C$9.41 C$18.31 C$27.08 65
DDM Multi-Stage C$9.41 C$16.04 C$19.39 65
Multiples
P/E Multiple C$95.57 C$127.43 C$159.29 61
P/S Multiple C$77.37 C$103.16 C$128.95 56
P/B Multiple C$92.26 C$123.01 C$153.76 53
EV/EBIT C$108.00 C$145.13 C$182.27 65
EV/EBITDA C$98.53 C$132.51 C$166.49 66
EV/Revenue C$76.11 C$110.18 C$144.26 52
Asset-Based
NCAV (Graham) C$8.45 C$12.80 C$16.00 53
Economic Profit
Residual Income C$36.27 C$49.57 C$89.15 71
ROIC Compounder C$69.37 C$89.39 C$113.94 71
Growth Earnings
Growth-Adj P/E C$80.38 C$114.83 C$149.27 66

Open the full fair value analysis →

Quality Score breakdown

Overall quality 52/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 74
How much profit the company makes from its sales and capital
Quality Growth 32
Are margins and returns getting better?
Cashflow 8
Do the profits arrive as real cash?
Financial strength 81
Debt, balance sheet and risk of trouble
Investment 30
Does it invest with discipline instead of growing at any price?
Low Volatility 26
How calm the share price moves, does not count
Momentum 61
Price trend of the last 3 to 12 months, does not count
Near the 52-week high 73
Distance to the 52-week high, does not count
New shares 82
Buys back shares or issues new ones?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 62/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+13.9%
Revenue growth 3 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+17.2%
Revenue growth 5 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+22.8%
Start year 2020 (pandemic). Over 10 years: +12.6% a year
Revenue growth 24 years ⓘ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. Per-share growth (which does include buybacks) is in the value-creation card.
+10.2%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
+38.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year+38.4%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.38.4% vs 39.6%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.7% → 12%
Pace: the 5-year rate starts in 2020 (pandemic)

HPS-A screens overvalued: fair value 79% below the price. Compare with Contemporary Amperex Technology Co →

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Peer Groupⓘ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.Electrical Equipment & Parts · 553 stocks

Beats the industry median on 6/13 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 52 · Below median
Fair Value upside −79.3% · Bottom 25%
Profitability
Return on equity (12 months) 17.3% · Top 25%
Return on assets 12.1% · Top 25%
Net margin (12 months) 5.8% · Above median
Operating margin (12 months) 7.1% · Above median
Growth and dividend
Revenue growth (quarter YoY) 44.7% · Top 25%
Dividend yield (12 months) 0.5% · Bottom 25%
Balance sheet
Debt / equity 0.01× · Below median

Valuation Multiplesvs Electrical Equipment & Parts median · lower = cheaper

P/E (12 months) 55.6× · Priciest 25%
P/B 9.71× · Priciest 25%
P/S (12 months) 3.22× · Pricier than median
EV/EBITDA 29.8× · Priciest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 0
FUTURE (revenue growth)100 · sector 57
PAST (return on equity)69 · sector 26
HEALTH (low debt)99 · sector 97
DIVIDEND (yield)9 · sector 23

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

Context: sector, industry, market

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.

Stock Price Fair Value vs Fair Value Compare
Contemporary Amperex Technology Co 300750 ¥267.02 ¥648.35 +143% vs HPS-A
Sungrow Power Supply Co 300274 ¥82.35 ¥185.48 +125% vs HPS-A
Vertiv Holdings VRT $242.78 $178.68 −26% vs HPS-A
Prysmian S.p.A PRY €109.40 €75.63 −31% vs HPS-A
Hubbell Incorporated HUBB $474.11 $293.28 −38% vs HPS-A
Legrand SA LR €134.00 €82.77 −38% vs HPS-A
LG Energy Solution, Ltd 373220 371,000 KRW 201,455 KRW −46% vs HPS-A
ABB Ltd ABBN CHF 78.88 CHF 29.89 −62% vs HPS-A
nVent Electric plc NVT $167.43 $43.51 −74% vs HPS-A
Delta Electronics (Thailand) Public Company DELTA 251.00 THB 38.64 THB −85% vs HPS-A

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

Frequently asked questions

Is Hammond Power Solutions Inc (HPS-A) overvalued or undervalued?
As of Oct 13, 2026, our model estimates a fair value of C$49.57 versus a price of C$239.56, about −79% upside (overvalued).
What is the fair value of HPS-A?
Our model-based fair value for Hammond Power Solutions Inc is C$49.57 (as of Oct 13, 2026), built from audited fundamentals. The current price: C$239.56.
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 price target for Hammond Power Solutions Inc (HPS-A)?
Our model-based price target is the fair value of C$49.57 (as of Oct 13, 2026) from 17 valuation models. Cautious scenario C$36.27, optimistic scenario C$89.15. It is a calculation from audited fundamentals, not an analyst target.
What is the Hammond Power Solutions Inc stock forecast for 2026?
Our models put fair value at C$49.57, about −79% upside versus a price of C$239.56 (overvalued). Cautious scenario C$36.27, optimistic scenario C$89.15. The calculation is refreshed regularly with new filings.
What is the revenue of Hammond Power Solutions Inc (HPS-A)?
Hammond Power Solutions Inc reported trailing-twelve-month revenue of about C$1.1B (latest available figure, as of Oct 13, 2026).
Does Hammond Power Solutions Inc pay a dividend?
Hammond Power Solutions Inc currently shows a dividend yield of 0.46% relative to its recent price (as of Oct 13, 2026).
What is the intrinsic value of Hammond Power Solutions Inc (HPS-A)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Hammond Power Solutions Inc it is C$49.57 per share (as of Oct 13, 2026), against a price of C$239.56. It is the blended result of 17 valuation models (cash flow, earnings, asset, dividend).
Is Hammond Power Solutions Inc stock overvalued or undervalued in 2026?
As of Oct 13, 2026, HPS-A trades above its calculated fair value: price C$239.56, fair value C$49.57, a gap of about −79% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of HPS-A?
No. The price is what the market pays today (C$239.56); the fair value is what the company's own numbers justify (C$49.57). For Hammond Power Solutions Inc the two are C$189.99 per share apart. That gap is exactly why we show both numbers side by side.
How much is Hammond Power Solutions Inc worth?
The market values Hammond Power Solutions Inc at about C$3.4B (market capitalisation, as of Oct 13, 2026). Per share that is C$239.56; our models calculate a fair value of C$49.57 per share.
What do the bullish and bearish scenarios say about HPS-A?
Our models span a range for Hammond Power Solutions Inc: cautious scenario C$36.27, base C$49.57, optimistic C$89.15 per share (as of Oct 13, 2026, price C$239.56). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of HPS-A?
Hammond Power Solutions Inc trades at a price-to-earnings ratio of 55.6 (as of Oct 13, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of C$49.57 is built from several models across several years. Other multiples: P/B 9.7, P/S 3.2, EV/EBITDA 29.8.
How solid is the balance sheet of Hammond Power Solutions Inc (HPS-A)?
Balance-sheet figures for Hammond Power Solutions Inc (as of Oct 13, 2026): return on equity 17.3%, debt of 0.01 per unit of equity. They feed the Quality Score of 52/100, which measures business quality independently of the share price.
How far is HPS-A from its 52-week high?
Hammond Power Solutions Inc trades at C$239.56, about 33% below its 52-week high of C$359.85 and 75% above the low of C$136.60 (as of Oct 19, 2026). Distance from the high says nothing about value: that is what the fair value of C$49.57 is for.
Which stocks are comparable to Hammond Power Solutions Inc?
From the same area (Industrials) we also value Contemporary Amperex Technology Co, ABB Ltd, Delta Electronics (Thailand) Public Company, Vertiv Holdings, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Hammond Power Solutions Inc stock attractive at the current price?
The data as of Oct 13, 2026: price C$239.56, calculated fair value C$49.57 (−79%), Quality Score 52/100, from 17 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of HPS-A calculated?
We run Hammond Power Solutions Inc through 17 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of C$49.57, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.9 % above its aggregate fair value. Hammond Power Solutions Inc itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Hammond Power Solutions Inc (HPS-A)?
The closing price on Oct 19, 2026 was C$239.56. Our model-based fair value is C$49.57, about −79% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Hammond Power Solutions Inc right now?
The price sits above even our optimistic bull case (C$89.15). The favourable scenario is already priced in. Solid but not exceptional quality (52/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (C$36.27 to C$89.15) leaves room in how you read the outcome.
Where does the earnings growth of Hammond Power Solutions Inc (HPS-A) come from?
Earnings per share at Hammond Power Solutions Inc grew +39.0 % a year from 2014 to 2025. Broken into its drivers: revenue per share +12.8 %, EBIT margin +13.8 %, tax rate +4.9 %, residual (interest, one-offs) +3.2 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Hammond Power Solutions Inc

How large is the market capitalisation of Hammond Power Solutions Inc (HPS-A)?
The market capitalisation of Hammond Power Solutions Inc is C$3.4B (≈ $2.4B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Hammond Power Solutions Inc (HPS-A)?
The price-to-sales ratio of Hammond Power Solutions Inc is 3.22 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Hammond Power Solutions Inc (HPS-A)?
Earnings per share at Hammond Power Solutions Inc are C$5.16 (price ÷ EPS = P/E 55.6). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Hammond Power Solutions Inc (HPS-A)?
The dividend yield of Hammond Power Solutions Inc is 0.5% (payout 21.3%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Hammond Power Solutions Inc (HPS-A)?
The net margin of Hammond Power Solutions Inc is 5.8% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Hammond Power Solutions Inc (HPS-A)?
The return on equity (ROE) of Hammond Power Solutions Inc is 17.3% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Hammond Power Solutions Inc (HPS-A)?
On an EBIT basis the return on assets of Hammond Power Solutions Inc is 17.6% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Hammond Power Solutions Inc (HPS-A)?
The operating margin of Hammond Power Solutions Inc is 7.1% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Hammond Power Solutions Inc (HPS-A)?
Revenue at Hammond Power Solutions Inc is growing +44.7% versus a year earlier (3y avg +17.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Hammond Power Solutions Inc (HPS-A)?
Earnings per share at Hammond Power Solutions Inc are growing −29.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Hammond Power Solutions Inc (HPS-A) generate?
The free cash flow of Hammond Power Solutions Inc is −C$12.5M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Hammond Power Solutions Inc (HPS-A) carry?
The net debt of Hammond Power Solutions Inc is C$40.5M (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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