Hammond Power Revenue, EPS, Share price estimate 2023-25
2023E 2024E 2025E
Revenues * $725KK $825KK $925KK
Net margin** 8% 8% 8%
Net earnings $58KK $66KK $74KK
Shares outstanding 12 million
EPS $4.83 $5.50 $6.16
The company forecasts a $250 increase in revenue by adding new equipment to existing plants and building new plants. Price increases have not been factored into the revenue assumptions.
PE on 2025 earnings of 12X, suggests a stock price of $73.92 in 24 months, a 37% gain plus dividends. This assumes margins and tax rate stay constant.
* $250 million expansion plan in process. Assume $100 million in 2023 & $200 million in 2024 as new equipment and plants come on line.
** In line with trailing 4 quarter average, this could improve with operating leverage from higher revenues