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Hammond Power Solutions Inc. (HPS.A-T)
TSE:HPS.A
86.83
3.33
(3.69%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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Weekly 52-Week Low (or 52-Week High): BB-T, AEM-T, DOO-T, TSU-T and More 52-Week Highs and Lows (Jan 29-Feb 04)Weekly 52-Week Low (or 52-Week High): BB-T, AEM-T, DOO-T, TSU-T and More 52-Week Highs and Lows (Jan 29-Feb 04)This summary was created by AI, based on 14 opinions in the last 12 months.
Hammond Power Solutions Inc. revolves around producing electric transformers, benefiting from increased demand driven by data center buildouts, healthcare infrastructure, and the growing electrification of systems such as electric vehicles (EVs). While the company has shown positive revenue growth and increasing order backlogs, concerns regarding its capacity constraints persist, particularly in key regions like Guelph and New Mexico. Despite its robust performance, experts express caution about the sustainability of high margins and the high price-to-earnings ratio, suggesting thorough analysis is necessary for potential investors. The stock has experienced considerable volatility, with recommendations ranging from holding to careful reduction. Analysts indicate a favorable outlook, but investors should remain vigilant amid potential fluctuations in share price due to earnings report announcements.
$91.460
No
He sold it after rising 300% for him. Problem now are their capacity constraints. They're growing capacity in Guelph and New Mexico, but you're overpaying on limited growth. He doesn't see the growth, considering their PE.
Our PAST TOP PICK with HPS.A has triggered its stop at $127. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 21%
Exposed to the right verticals. One of the very few pure-plays in Canada. Management's been great. Stock has benefited from pickup in demand. But is it sustainable? Margins can't remain elevated forever. Power demand is real. Given the runup, be careful.
Hold, or reduce on strength. Better ways to get exposure.
Recently reported earnings for HPS.A showed record margins, increased revenues and a growing order backlog. Healthcare and data centre infrastructure projects are growing well for this manufacturer of electric transformers. We like that cash reserves are growing, while debt is retired. It supports a 27% ROE. We recommend trailing up the stop (from $115) to $127 at this time, looking to achieve $166 -- upside potential of 22%. Yield 0.7%
(Analysts’ price target is $165.67)On a tear. It's always been expensive. Revenues have been growing, though net income's been a bit slow to follow. If it can get to a critical mass, then stock will be OK. Expect volatility. Look for big selloffs around quarterly earnings. Watch position size in your portfolio.
Dry transformers. Spending fair bit of money to ramp up production and capabilities. Strong balance sheet. Data centres are going to use a lot of power, so the story will continue. Trades ~10x EBITDA, but growing at really high teens multiples for revenue and EBITDA. Yield is 0.8%.
(Analysts’ price target is $165.00)We reiterate this producer of electric transformers as a TOP PICK. Management announced an acceleration of capital deployment, supporting the trend for growing demand for its products. We like that cash reserves are growing, while debt is reduced. It trades at 20x earnings and supports a 28% ROE. We recommend trailing up the stop (from $75) to $95, looking to achieve $146 -- upside potential of 28%. Yield 0.6%
(Analysts’ price target is $165.00)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.
HPS-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)Shares have taken off due to the electrification of the grid, driven by EV demand. Kudos if you own this, but he doesn't buy smallcaps. Owners own a lot of shares. Needs to research this more.
Big tech and data centres need more power, because AI consumes a lot. Hammond plays into this.
Surprisingly, this is doing well, returning 10x your investment over 2 years. HPS has benefited from the boom in energy storage and data centres. Revenues and margins have shot up, so can they sustain this? He doesn't chase stocks that have shot up.
Hammond Power Solutions Inc.(HPS.A-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 6
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 3
Total Signals / Votes : 9
Hammond Power Solutions Inc.(HPS.A-T) Frequently Asked Questions
What is Hammond Power Solutions Inc. stock symbol?
Hammond Power Solutions Inc. is a Canadian stock, trading under the symbol HPS.A-T on the Toronto Stock Exchange (HPS.A-CT). It is usually referred to as TSX:HPS.A or HPS.A-T
Is Hammond Power Solutions Inc. a buy or a sell?
In the last year, 9 stock analysts published opinions about HPS.A-T. 6 analysts recommended to BUY the stock. 3 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hammond Power Solutions Inc..
Is Hammond Power Solutions Inc. a good investment or a top pick?
Hammond Power Solutions Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Hammond Power Solutions Inc..
Why is Hammond Power Solutions Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Hammond Power Solutions Inc. worth watching?
9 stock analysts on Stockchase covered Hammond Power Solutions Inc. In the last year. It is a trending stock that is worth watching.
What is Hammond Power Solutions Inc. stock price?
On 2025-02-21, Hammond Power Solutions Inc. (HPS.A-T) stock closed at a price of $86.83.
Still owned by founder, second generation. Has done the same thing for a long time; what changed is number of places they could sell to. Good business, but not a great price right now.
DeepSeek was like a "man overboard" moment for a stock like this, as many own it simply as a beneficiary of data centre buildout. This sentiment makes it harder for the long-term investor.