Hammond Manufacturing Company Limited Fundamental Analysis (TSX: HMM-A.TO)
Hammond Manufacturing Company Limited Fundamental Analysis (TSX: HMM-A.TO)
Hammond Manufacturing Company Limited (TSX: HMM-A.TO) shows moderate financial fundamentals with a PE ratio of 14.22, profit margin of 6.09%, and ROE of 13.55%. The company generates $0.3B in annual revenue with strong year-over-year growth of 14.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HMM-A.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakHMM-A.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateHMM-A.TO shows balanced valuation metrics.
Growth Score
ModerateHMM-A.TO shows steady but slowing expansion.
Financial Health Score
ExcellentHMM-A.TO maintains a strong and stable balance sheet.
Profitability Score
WeakHMM-A.TO struggles to sustain strong margins.
Key Financial Metrics
Is HMM-A.TO Expensive or Cheap?
P/E Ratio
HMM-A.TO trades at 14.22 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HMM-A.TO's PEG of 4.47 indicates potential overvaluation.
Price to Book
The market values Hammond Manufacturing Company Limited at 1.80 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.20 times EBITDA. This is generally considered low.
How Well Does HMM-A.TO Make Money?
Net Profit Margin
For every $100 in sales, Hammond Manufacturing Company Limited keeps $6.09 as profit after all expenses.
Operating Margin
Core operations generate 9.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.55 in profit for every $100 of shareholder equity.
ROA
Hammond Manufacturing Company Limited generates $7.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hammond Manufacturing Company Limited produces operating cash flow of $35.89M, showing steady but balanced cash generation.
Free Cash Flow
Hammond Manufacturing Company Limited produces free cash flow of $20.93M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.85 in free cash annually.
FCF Yield
HMM-A.TO converts 8.04% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.22
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.80
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.86
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.41
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.15
vs 25 benchmark
How HMM-A.TO Stacks Against Its Sector Peers
| Metric | HMM-A.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.22 | 29.39 | Better (Cheaper) |
| ROE | 13.55% | 1109.00% | Weak |
| Net Margin | 6.09% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.41 | 0.82 | Strong (Low Leverage) |
| Current Ratio | 1.93 | 21.75 | Neutral |
| ROA | 7.16% | -1328226.00% (disorted) | Weak |
HMM-A.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hammond Manufacturing Company Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
89.69%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
86.37%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
62.22%
Industry Style: Cyclical, Value, Infrastructure
High Growth