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Hammond Mfg Cl A SV (TSE:HMM.A)
:HMM.A
Canadian Market
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Hammond Mfg Cl A SV (HMM.A) AI Stock Analysis

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TSE:HMM.A

Hammond Mfg Cl A SV

(TSX:HMM.A)

Rating:82Outperform
Price Target:
C$11.50
▲(18.56%Upside)
Hammond Mfg Cl A SV presents a strong investment opportunity with a robust financial performance and attractive valuation. The company's financial health is solid, marked by strong profitability and efficient cash generation. Despite slightly overbought technical indicators, the stock's low P/E ratio suggests it is undervalued, making it appealing for investors seeking growth and value. The lack of earnings call and corporate event data did not impact the overall assessment.

Hammond Mfg Cl A SV (HMM.A) vs. iShares MSCI Canada ETF (EWC)

Hammond Mfg Cl A SV Business Overview & Revenue Model

Company DescriptionHammond Manufacturing Company Limited, together with its subsidiaries, designs, manufactures, and sells electrical and electronic components in Canada, the United States, and internationally. The company offers electrical enclosures, including mild and stainless steel, aluminum, non-metallic, disconnect, modular freestanding, operator interface, and commercial enclosures; wireway and trough, climate control, and data communication infrastructure products; and general accessories. It also provides small enclosures, such as diecast, plastic, extruded, rock mounted, and industrial enclosures; and general purpose metal and development board products, chassis, and handles and accessories. In addition, the company offers rack mounting solutions, such as open frame network racks, server racks and cabinets, wall mount racks and cabinets, and rack accessories; rack mount, heavy duty, and surge suppression outlet strips, and outlet accessories; and power, line, audio, energy limiting, instrument, guitar replacement, and classic transformers, as well as chokes and reactors. Further, it provides magnetics for tube applications, and amateur radio and commercial broadcast products, as well as modification and technical support services. The company serves electrical and electronic manufacturers, utilities, and institutions through original equipment manufacturers and a network of agents and distributors. Hammond Manufacturing Company Limited was founded in 1917 and is headquartered in Guelph, Canada.
How the Company Makes MoneyHammond Manufacturing generates revenue through the sale of its products, which include electrical and electronic enclosures, racks, small cases, outlet strips, and transformers. The company's key revenue streams are derived from its extensive product lines that are distributed through a network of global distributors, direct sales to Original Equipment Manufacturers (OEMs), and custom manufacturing for specific industrial applications. Additionally, Hammond leverages strategic partnerships and a robust supply chain to maintain competitive pricing and high-quality standards, which contribute to its earnings and market presence.

Hammond Mfg Cl A SV Financial Statement Overview

Summary
Hammond Mfg Cl A SV demonstrates strong financial health across all verticals. The income statement indicates growing revenues and solid profitability margins with a TTM Gross Profit Margin of 36.96% and a Net Profit Margin of 7.37%. The balance sheet shows stability with a Debt-to-Equity Ratio of 0.45 and an ROE of 15.06%. Cash flow generation is impressive with a Free Cash Flow growth rate of 11.91% and a strong Operating Cash Flow to Net Income Ratio of 1.89.
Income Statement
85
Very Positive
The company shows a solid performance on its income statement. The TTM Gross Profit Margin stands at 36.96%, indicating strong cost management. The Net Profit Margin for the TTM is robust at 7.37%. Revenue growth is consistent, with a TTM increase of 3.30% compared to the previous year. The EBIT and EBITDA margins are healthy at 11.01% and 15.24% respectively, reflecting efficient operations and good profitability.
Balance Sheet
78
Positive
The balance sheet reflects stability with a Debt-to-Equity Ratio of 0.45, indicating a balanced leverage situation. ROE is solid at 15.06%, showcasing effective use of equity to generate profits. The Equity Ratio is 56.68%, underscoring strong equity financing. The financial position is stable, with a manageable level of debt.
Cash Flow
82
Very Positive
Cash flow generation is impressive, with a Free Cash Flow growth rate of 11.91%. The Operating Cash Flow to Net Income Ratio is strong at 1.89, suggesting efficient cash conversion. The Free Cash Flow to Net Income Ratio is 1.30, indicating that the company is generating substantial cash relative to its net income.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue252.97M244.90M238.28M225.92M190.13M148.22M
Gross Profit93.52M90.90M86.21M71.63M56.00M49.17M
EBITDA38.56M37.79M36.61M25.73M18.55M18.45M
Net Income18.64M18.37M18.76M12.00M7.70M7.72M
Balance Sheet
Total Assets218.37M214.79M189.54M168.00M136.98M120.25M
Cash, Cash Equivalents and Short-Term Investments28.38M24.71M8.89M942.00K4.07M2.79M
Total Debt55.28M56.73M56.45M48.39M35.53M35.72M
Total Liabilities94.58M95.25M90.54M86.46M68.28M58.71M
Stockholders Equity123.79M119.53M99.00M81.55M68.69M61.54M
Cash Flow
Free Cash Flow24.19M21.61M3.13M-15.39M3.36M10.12M
Operating Cash Flow35.19M33.66M16.89M4.82M14.92M15.69M
Investing Cash Flow-10.98M-12.04M-13.62M-20.16M-11.54M-5.53M
Financing Cash Flow-7.11M-7.37M5.20M11.09M-1.96M-7.55M

Hammond Mfg Cl A SV Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price9.70
Price Trends
50DMA
9.69
Positive
100DMA
9.07
Positive
200DMA
9.49
Positive
Market Momentum
MACD
0.10
Positive
RSI
43.37
Neutral
STOCH
16.75
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMM.A, the sentiment is Neutral. The current price of 9.7 is below the 20-day moving average (MA) of 10.22, above the 50-day MA of 9.69, and above the 200-day MA of 9.49, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 16.75 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:HMM.A.

Hammond Mfg Cl A SV Peers Comparison

Overall Rating
UnderperformOutperform
Sector (71)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
C$109.94M5.9016.38%0.62%7.70%-2.20%
71
Outperform
¥268.02B13.928.47%2.88%6.35%13.11%
$180.31M-0.21%
47
Neutral
C$15.60M-200.00%177.07%29.71%
$1.00B17.8326.34%0.01%
$29.24M-3009.52%
61
Neutral
C$161.58M-45.20%17.51%-2.94%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:HMM.A
Hammond Mfg Cl A SV
9.70
-0.68
-6.55%
ELVA
Electrovaya
4.50
1.98
78.57%
TSE:LPS
Legend Power Systems
0.11
-0.11
-50.00%
HMDPF
Hammond Power Solutions
85.10
7.20
9.24%
EXROF
Exro Technologies
0.05
-0.35
-87.50%
TSE:GRID
Tantalus Systems Holding
3.16
1.68
113.51%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 01, 2025