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

• Market Cap: C$113.34M
• Dividend Yield: 0.54%
• Average Volume (3M): 10.45K
• Price to Earnings (P/E): 6.6
• Beta (1Y): 0.52
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$11.00 ▲(0.00% 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

Healthy margins and profitability

Sustained gross margin (~36%) and stable net margin provide durable operating leverage from manufacturing scale and product mix. Strong margins support reinvestment in R&D, buffer against input cost swings, and enable steady cash generation over the medium term.

Diversified product portfolio and end markets

A broad product set across enclosures, thermal solutions and power distribution serving telecom, data center and industrial customers reduces single-market exposure. Diversification and distributor channels support recurring demand and more stable revenues across cycles.

Conservative leverage with strong ROE

Moderate leverage combined with a ~14.8% ROE indicates efficient capital deployment without excessive financial risk. This balance affords flexibility for capex, dividends or acquisitions while keeping interest burden manageable under varying economic conditions.

Negative Factors

Negative EPS growth

Trailing EPS contraction (-7.2%) signals earnings pressure that, if persistent, can erode retained earnings and limit funding for growth or shareholder returns. It may reflect margin compression, higher costs, or demand softness that undermines medium-term profitability.

Rising debt levels flagged

Although current leverage is moderate, management-noted rising debt increases fixed obligations and interest sensitivity. Continued borrowing could reduce flexibility, heighten refinancing risk, and pressure cashflows if margins or sales slow.

Suboptimal cash conversion

While FCF growth is strong, low operating cash-to-income (0.40) and FCF-to-income (0.57) point to cash conversion inefficiencies, likely from working capital timing. This can constrain ability to fund capex, debt repayment or distributions during downturns.

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 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 demonstrates solid financial health with consistent revenue growth and profitability. The balance sheet reflects a stable financial structure, though rising debt levels warrant attention. Cash flow generation is improving, but efficiency in cash conversion could be enhanced.

Income Statement

Hammond Mfg Cl A SV shows consistent revenue growth with a 3.29% increase in the TTM period. Gross profit margin remains strong at 35.92%, although slightly lower than the previous year. Net profit margin is stable at 6.80%, indicating profitability. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, slight declines in margins suggest potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio is moderate at 0.49, indicating a balanced approach to leveraging. Return on equity is robust at 14.80%, showcasing effective use of equity to generate profits. The equity ratio is stable, reflecting a solid financial position. However, increasing debt levels could pose future risks if not managed carefully.

Cash Flow

Free cash flow growth is strong at 20.70%, indicating improved cash generation. The operating cash flow to net income ratio is 0.40, suggesting adequate cash flow coverage. However, the free cash flow to net income ratio of 0.57 indicates room for improvement in cash conversion efficiency.

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: Negative
• Last Price: 11.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMM.A, the sentiment is Negative. The current price of 11 is above the 20-day moving average (MA) of 10.47, below the 50-day MA of 11.01, and above the 200-day MA of 10.09, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 29.25 is Positive, neither overbought nor oversold. The STOCH value of 25.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$113.34M	6.56	14.23%	0.54%	12.69%	-7.21%
HPS.A	67 Neutral	C$2.19B	27.10	25.65%	0.69%	11.19%	19.13%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GRID	57 Neutral	C$297.88M	-223.17	-13.77%	―	26.28%	27.86%
LPS	42 Neutral	C$14.90M	-4.58	-341.84%	―	27.76%	-0.37%