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

• Market Cap: C$131.36M
• Dividend Yield: 0.51%
• Average Volume (3M): 10.45K
• Price to Earnings (P/E): 7.4
• Beta (1Y): 0.60
• Revenue Growth: 12.69%
• EPS Growth: -7.21%
• Country: CA
• Employees: 900
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 0.34
• Shares Outstanding: 8,556,000
• 10 Day Avg. Volume: 15,211
• 30 Day Avg. Volume: 10,449
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$13.50 ▲(18.21% Upside)

Hammond Mfg Cl A SV scores well due to its strong financial performance and attractive valuation. The technical analysis indicates bullish momentum, though caution is advised as indicators approach overbought levels. The absence of earnings call and corporate events data does not impact the score significantly.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow growth enhances financial flexibility, enabling investment in growth opportunities and debt reduction.

Profitability

Strong profit margins reflect efficient operations and pricing power, supporting sustainable profitability and competitive positioning.

Negative Factors

Rising Debt Levels

Rising debt may strain financial resources and limit strategic flexibility, potentially impacting long-term financial health.

Margin Pressure

Declining margins may indicate rising costs or competitive pressures, potentially affecting profitability if not addressed.

Earnings Growth

Negative earnings growth can signal operational challenges or market pressures, impacting investor confidence and future growth prospects.

Hammond Mfg Cl A SV Business Overview & Revenue Model

Company Description

Hammond Manufacturing Company Limited (HMM.A) is a Canadian manufacturer specializing in the design and production of electrical enclosures, racks, and various other related products. The company primarily operates in the electrical and electronic equipment sectors, offering solutions that cater to the needs of telecommunications, data centers, and industrial markets. Hammond's core product lines include metal and plastic enclosures, thermal management solutions, and power distribution units, serving a diverse range of customers from small businesses to large enterprises.

How the Company Makes Money

Hammond Manufacturing generates revenue through the sale of its manufactured products, which include a wide range of electrical enclosures and related hardware. Key revenue streams come from direct sales to customers in various industries, as well as partnerships with distributors and retailers who market and sell Hammond's products. The company benefits from a diversified customer base, enabling it to mitigate risks associated with industry fluctuations. Additionally, Hammond invests in research and development to innovate and expand its product offerings, which helps to attract new customers and retain existing ones. Strategic alliances with other manufacturers and suppliers also contribute to its revenue by enhancing product availability and market reach.

Hammond Mfg Cl A SV Financial Statement Overview

Summary

Hammond Mfg Cl A SV presents a robust financial position with consistent revenue growth and strong operational margins. The balance sheet reflects moderate leverage and effective equity utilization. However, declining free cash flow growth poses a potential risk, warranting attention to cash flow management.

Income Statement

Hammond Mfg Cl A SV demonstrates solid revenue growth with a 3.71% increase in TTM, supported by a stable gross profit margin of 35.92%. However, the net profit margin has slightly decreased to 6.80% from 7.50% in the previous year, indicating some pressure on profitability. EBIT and EBITDA margins remain healthy, reflecting efficient operational management.

Balance Sheet

The company's balance sheet is stable with a manageable debt-to-equity ratio of 0.49, indicating moderate leverage. Return on equity is strong at 14.80%, showcasing effective use of equity to generate profits. The equity ratio of 56.49% suggests a solid equity base relative to total assets.

Cash Flow

Cash flow performance shows a decline in free cash flow growth by 37.37%, which is a concern. However, the operating cash flow to net income ratio of 0.40 indicates reasonable cash generation relative to net income. The free cash flow to net income ratio of 0.57 suggests that a significant portion of net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	270.98M	244.90M	238.28M	225.92M	190.13M	148.22M
Gross Profit	95.99M	90.90M	86.21M	71.63M	56.00M	49.17M
EBITDA	35.74M	37.79M	36.61M	25.54M	18.43M	18.30M
Net Income	17.29M	18.37M	18.76M	12.00M	7.70M	7.72M
Balance Sheet
Total Assets	231.04M	214.79M	189.54M	168.00M	136.98M	120.25M
Cash, Cash Equivalents and Short-Term Investments	30.84M	24.71M	8.89M	942.00K	4.07M	2.79M
Total Debt	61.90M	56.73M	56.45M	48.39M	35.53M	35.72M
Total Liabilities	100.67M	95.25M	90.54M	86.46M	68.28M	58.71M
Stockholders Equity	130.38M	119.53M	99.00M	81.55M	68.69M	61.54M
Cash Flow
Free Cash Flow	18.29M	21.61M	3.13M	-15.39M	3.36M	10.12M
Operating Cash Flow	25.86M	33.66M	16.89M	4.82M	14.92M	15.69M
Investing Cash Flow	-7.57M	-12.04M	-13.62M	-20.16M	-11.54M	-5.53M
Financing Cash Flow	-7.66M	-7.37M	5.20M	11.09M	-1.96M	-7.55M

Hammond Mfg Cl A SV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.42 is below the 20-day moving average (MA) of 11.63, above the 50-day MA of 10.86, and above the 200-day MA of 9.60, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 51.86 is Neutral, neither overbought nor oversold. The STOCH value of 73.28 is Neutral, 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	76 Outperform	C$131.36M	7.37	14.23%	0.51%	12.69%	-7.21%
HPS.A	70 Outperform	$2.02B	25.00	25.65%	0.65%	11.19%	19.13%
ELVA	69 Neutral	C$310.74M	165.15	8.02%	―	17.08%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRID	60 Neutral	C$212.94M	-92.83	-13.77%	―	26.28%	27.86%
LPS	47 Neutral	C$19.86M	-4.83	-341.84%	―	27.76%	-0.37%
EXRO	40 Neutral	―	―	-405.71%	―	163.76%	-113.54%