Hammond Mfg Cl A SV (HMM.A) AI Stock Analysis

• Market Cap: C$109.38M
• Dividend Yield: 0.62%
• Average Volume (3M): 7.65K
• Price to Earnings (P/E): 6.1
• Beta (1Y): 0.49
• Revenue Growth: 11.45%
• EPS Growth: -2.19%
• Country: CA
• Employees: 900
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.42
• Shares Outstanding: 8,556,000
• 10 Day Avg. Volume: 5,995
• 30 Day Avg. Volume: 7,654
• PEG Ratio: -2.69
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 5.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$10.50
• Price Target Upside: 8.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: C$10.50 ▲(8.81% Upside)

Hammond Mfg Cl A SV's overall stock score is driven by its strong financial performance and attractive valuation. The company's robust revenue growth and operational efficiency are significant strengths, although declining free cash flow growth requires attention. The technical analysis suggests neutral market conditions, while the low P/E ratio highlights potential undervaluation, making it appealing to value investors.

Hammond Mfg Cl A SV Business Overview & Revenue Model

Company Description

Hammond 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 Money

Hammond Manufacturing generates revenue through the production and sale of its wide array of electrical and electronic components. The company's key revenue streams include sales of electrical enclosures, which are used to protect sensitive equipment, and power transformers, which are essential in managing electrical energy. Hammond Manufacturing benefits from a diverse customer base spanning multiple industries, ensuring steady demand for its products. Additionally, the company may engage in strategic partnerships and maintain long-term contracts with key clients, further solidifying its revenue base. The company's emphasis on product quality and innovation helps maintain its competitive edge and market position, contributing to consistent earnings.

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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	262.36M	244.90M	238.28M	225.92M	190.13M	148.22M
Gross Profit	94.23M	90.90M	86.21M	71.63M	56.00M	49.17M
EBITDA	37.66M	37.79M	36.61M	25.73M	18.55M	18.45M
Net Income	17.84M	18.37M	18.76M	12.00M	7.70M	7.72M
Balance Sheet
Total Assets	223.37M	214.79M	189.54M	168.00M	136.98M	120.25M
Cash, Cash Equivalents and Short-Term Investments	24.71M	24.71M	8.89M	942.00K	4.07M	2.79M
Total Debt	61.28M	56.73M	56.45M	48.39M	35.53M	35.72M
Total Liabilities	97.16M	95.25M	90.54M	86.46M	68.28M	58.71M
Stockholders Equity	126.21M	119.53M	99.00M	81.55M	68.69M	61.54M
Cash Flow
Free Cash Flow	15.15M	21.61M	3.13M	-15.39M	3.36M	10.12M
Operating Cash Flow	26.57M	33.66M	16.89M	4.82M	14.92M	15.69M
Investing Cash Flow	-11.40M	-12.04M	-13.62M	-20.16M	-11.54M	-5.53M
Financing Cash Flow	-7.20M	-7.37M	5.20M	11.09M	-1.96M	-7.55M

Hammond Mfg Cl A SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMM.A, the sentiment is Positive. The current price of 9.65 is above the 20-day moving average (MA) of 9.37, above the 50-day MA of 9.55, and above the 200-day MA of 9.38, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.72 is Neutral, neither overbought nor oversold. The STOCH value of 89.55 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HMM.A.

Hammond Mfg Cl A SV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HMM.A	71 Outperform	C$109.38M	6.14	15.17%	0.62%	11.45%	-2.19%
HPS.A	71 Outperform	C$1.45B	18.19	24.38%	0.90%	9.53%	20.80%
ELVA	70 Outperform	C$339.71M	213.89	-17.30%	―	17.08%	―
EXRO	47 Neutral	C$11.46M	-0.03	-1272.39%	―	163.76%	-113.54%
LPS	47 Neutral	C$29.79M	-7.81	―	―	27.76%	-0.37%
GRID	47 Neutral	C$182.08M	-79.37	-27.25%	―	24.53%	7.85%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%