Hammond Power Solutions Inc T.HPS.A

Time to Buy?

[retiredcf]

What is your opinion of HPS.A - is it a worthwhile investment for the long term?

October 05, 2023

HPS.A pays a small yield of 1.2%, has grown its sales nicely over the years and has demonstrated a strong expansion in margins, and analysts are expecting continue growth over the next few years. It's a fairly small name ($598M market cap), with very little debt, a cheap valuation (10X forward earnings), good free cash flow, and a growing balance sheet. Its backlog is growing and management has executed well. We think it has good potential from here, and we would be comfortable with a position here while being mindful of its small size risks and position sizing (5iResearch)

 

[IanB85]

I can't disagree; bought a little more last week when it was down.  There has to be a good long runway for this one.  The past few years have been a rough time in the market, but this one seems to really stand out as doing well. A growing dividend as well.

[Whynot297]

Trust me, don't be afraid to buy. The company is doing really well and will keep going.