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Hammond Power Solutions Inc
TSX:HPS.A

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Hammond Power Solutions Inc
TSX:HPS.A
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Price: 283.19 CAD 1.44% Market Closed
Market Cap: CA$3.4B

EV/GP

10.8
Current
100%
More Expensive
vs 3-y average of 5.4

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
10.8
=
Enterprise Value
CA$2.2B
/
Gross Profit
CA$272.3m

Enterprise Value to Gross Profit (EV/GP) ratio compares a company`s total enterprise value to its gross profit. It shows how much investors are paying for each dollar of the company`s gross profit, including both equity and debt.

EV/GP
10.8
=
Enterprise Value
CA$2.2B
/
Gross Profit
CA$272.3m

Valuation Scenarios

Hammond Power Solutions Inc is trading above its 3-year average

If EV/GP returns to its 3-Year Average (5.4), the stock would be worth CA$141.53 (50% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-68%
Maximum Upside
+78%
Average Downside
20%
Scenario EV/GP Value Implied Price Upside/Downside
Current Multiple 10.8 CA$283.19
0%
3-Year Average 5.4 CA$141.53
-50%
5-Year Average 3.5 CA$90.61
-68%
Industry Average 19.3 CA$503.92
+78%
Country Average 6.6 CA$173.15
-39%

Forward EV/GP
Today’s price vs future gross profit

Not enough data available to calculate forward EV/GP

Peer Comparison

All Multiples
EV/GP
P/E
All Countries
Close
Market Cap EV/GP P/E
CA
Hammond Power Solutions Inc
TSX:HPS.A
3.3B CAD 10.8 40.4
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
2T CNY 14.7 25.8
FR
Schneider Electric SE
PAR:SU
151B EUR 9.7 36.3
CH
Abb Ltd
SIX:ABBN
139.2B CHF 13.2 36.6
IE
Eaton Corporation PLC
NYSE:ETN
168B USD 17 41.1
US
Vertiv Holdings Co
NYSE:VRT
126.1B USD 31.4 80.9
US
Emerson Electric Co
NYSE:EMR
78.9B USD 8.8 34.2
KR
LG Energy Solution Ltd
KRX:373220
107.8T KRW 28.9 -100.4
JP
Fujikura Ltd
TSE:5803
9.9T JPY 32.5 68.7
US
AMETEK Inc
NYSE:AME
53.9B USD 20.3 36.4
FR
Legrand SA
PAR:LR
39.7B EUR 9 31.9
P/E Multiple
Earnings Growth PEG
CA
Hammond Power Solutions Inc
TSX:HPS.A
Average P/E: 43.2
40.4
27%
1.5
CN
Contemporary Amperex Technology Co Ltd
SZSE:300750
25.8
22%
1.2
FR
Schneider Electric SE
PAR:SU
36.3
23%
1.6
CH
Abb Ltd
SIX:ABBN
36.6
13%
2.8
IE
Eaton Corporation PLC
NYSE:ETN
41.1
19%
2.2
US
Vertiv Holdings Co
NYSE:VRT
80.9
43%
1.9
US
Emerson Electric Co
NYSE:EMR
34.2
25%
1.4
KR
LG Energy Solution Ltd
KRX:373220
Negative Multiple: -100.4 N/A N/A
JP
Fujikura Ltd
TSE:5803
68.7
44%
1.6
US
AMETEK Inc
NYSE:AME
36.4
14%
2.6
FR
Legrand SA
PAR:LR
31.9
14%
2.3

Market Distribution

Higher than 70% of companies in Canada
Percentile
70th
Based on 1 947 companies
70th percentile
10.8
Low
0.1 — 3.8
Typical Range
3.8 — 10.6
High
10.6 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 3.8
Median 6.6
70th Percentile 10.6
Max 259 067.6

Hammond Power Solutions Inc
Glance View

Hammond Power Solutions Inc., rooted in a rich history dating back to 1917, has evolved from a small family-run enterprise into a prominent leader in the global electrical industry. Specialized in the design and manufacture of electrical transformers and magnetics, the company operates with a clear vision to power the essential infrastructure of the modern world. Through its robust product offering—including distribution transformers, reactors, and custom magnetics—Hammond Power Solutions serves critical sectors such as renewable energy, data centers, and industrial manufacturing. The cornerstone of their operations lies in their ability to deliver high-quality, reliable electrical components that facilitate the safe and efficient transmission of electricity across various applications. As the global demand for electricity continues to surge, Hammond Power Solutions has carved a niche by leveraging innovation and leveraging its comprehensive network of manufacturing facilities in North America, Europe, and Asia. The company generates revenue through a blend of standardized and custom-engineered solutions, meeting diverse client specifications and adapting to emerging technological advancements. Its financial prowess is underscored by its focus on strategic partnerships and market expansion, all while maintaining a keen emphasis on sustainability and energy efficiency. By consistently aligning its operations with the evolving dynamics of the energy sector, Hammond Power Solutions not only sustains its competitive edge but also contributes significantly to the global push towards a more sustainable and electrically empowered future.

HPS.A Intrinsic Value
137.29 CAD
Overvaluation 52%
Intrinsic Value
Price CA$283.19
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