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Hammond Power Solutions Inc T.HPS.A

Alternate Symbol(s):  HMDPF

Hammond Power Solutions Inc. is a Canada-based company, which enables electrification through its broad range of dry-type transformers, power quality products and related magnetics. The Company's standard and custom-designed products are essential in electrical distribution networks through an extensive range of end user applications. The Company has manufacturing plants in Canada, the United States, Mexico and India and sells its products around the globe. Its products include power transformers, furnace transformers, converter transformers, regulating transformers, multi-pulse transformers, distribution transformers, pad mounted transformers and unitized substations. Its converter transformers are used in industries such as cement and steel plants, and other related applications. It serves various industries, including renewable energy, commercial infrastructure and industrial markets. It offers a variety of transformer and reactor solutions for the solar and wind energy market.


TSX:HPS.A - Post by User

Comment by Dollarboyon Feb 09, 2023 2:30am
141 Views
Post# 35276297

RE:ebidta

RE:ebidtaAgree @microcaphobby. P/S and EV/Sales are still low at 0.4. Transformers are like selling shovels durong a gold rush. I do not believe that there will be a lot of venture capital flooding the transformer market. It is seen as too capital heavy etc. Thus the good trading conditions for HPS may hopefully last for many years. 

What I also like very much is the fact that Bill Hammond and his management team are good stewards of capital. Despite explosive growth which typically eats OWC for breakfast driving up net debt, HPS has been able to combine excellent topline growth with positive FCF (increasing net cash).

The capex plan has somewhat increased but is not of a magnitude that is risky. Again, Bill Hammond does not bet the farm. 



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