TSE:HPS.A
Hammond Power Solutions Inc. (HPS.A.TO)
Financials 
Technical Analysis 
Sep 11, 2026, 12:00 amThis summary was created by AI, based on 10 opinions in the last 12 months.
Hammond Power Solutions Inc. (HPS.A-T) has captured the attention of various analysts, especially in light of the increasing demand for energy solutions tied to advancements like AI and the electrification of the economy. The company specializes in manufacturing transformers and energy transformers crucial for data centers, positioning it favorably for growth amidst significant infrastructure builds. Recent performance indicators show a strong backlog growth of 122% year-over-year, and the stock price has seen new highs and excellent momentum. However, some experts caution about the volatility around earnings announcements and the current overbought status of the stock. While the fundamentals are promising, there are concerns about rising input costs and supply chain disruptions impacting profit margins, making it vital for investors to carefully consider entry points.
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Premium contentHPS-A is the manufacturer of electric transformer systems used by electric utilities, the oil & gas sector and for EV charging stations. Recently reported earnings indicated record high quarterly sales and a 6% increase in earnings. We like that cash reserves are growing, while debt is retired. It trades at 22x earnings and supports a 25% ROE. We recommend setting a stop-loss at $75, looking to achieve $130 -- upside potential of 28%. Yield 1.0%
(Analysts’ price target is $162.00)
Canadian company that produces equipment for electrical business. Demand for EV cars, and electricity in general creating strong demand for products. Outlook for business very strong. Would expect large capital gains going forward.
Bruce Murray
Hold or maybe buy more. It is dominant in electrical transformers. Businesses overseas are starting to turn around. Their end markets are all doing very well right now. It should do well over the next few years. It checks a lot of the boxes for him.
Colin StewartMake smaller-scale electric transformers, with a pretty dominant market share, and could benefit from future increased number of electric vehicle stations. Really well run, clean balance sheet, 2.5% dividend. Sell to US customers in transportation, mining, power, oil & gas, infrastructure, where their end markets are strong and should be strong for several years. Low valuation, significant insider ownership. Good cash flow, could increase dividend and increase earnings significantly. A hidden gem in a niche sector. Canadian company that benefits from strong US economy. (Analyst’s price target is unknown .)
Colin Stewart
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Is exposed to all the right verticals. They make transformers to optimize energy, driven by the AI boom (the need for data centres). There's still upside despite the huge rally. Business is booming, and the growth trajectory is good. Trades at 18x PE, but growth makes the future PE reasonable.