Hammond Power Solutions Stock Debt To Equity
| HPS-A Stock | CAD 142.11 5.50 4.03% |
Hammond Power Solutions fundamentals help investors to digest information that contributes to Hammond Power's financial success or failures. It also enables traders to predict the movement of Hammond Stock. The fundamental analysis module provides a way to measure Hammond Power's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Hammond Power stock.
| Last Reported | Projected for Next Year | ||
| Debt To Equity | 0.08 | 0.08 |
Hammond | Debt To Equity |
Hammond Power Solutions Company Debt To Equity Analysis
Hammond Power's Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
Current Hammond Power Debt To Equity | 37.40 % |
Most of Hammond Power's fundamental indicators, such as Debt To Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Hammond Power Solutions is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Hammond Debt To Equity Driver Correlations
Understanding the fundamental principles of building solid financial models for Hammond Power is extremely important. It helps to project a fair market value of Hammond Stock properly, considering its historical fundamentals such as Debt To Equity. Since Hammond Power's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Hammond Power's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Hammond Power's interrelated accounts and indicators.
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High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
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Hammond Total Stockholder Equity
Total Stockholder Equity |
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According to the company disclosure, Hammond Power Solutions has a Debt To Equity of 37.4%. This is 36.65% lower than that of the Electrical Equipment sector and 40.36% lower than that of the Industrials industry. The debt to equity for all Canada stocks is 23.2% higher than that of the company.
Hammond Debt To Equity Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Hammond Power's direct or indirect competition against its Debt To Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Hammond Power could also be used in its relative valuation, which is a method of valuing Hammond Power by comparing valuation metrics of similar companies.Hammond Power is currently under evaluation in debt to equity category among its peers.
Hammond Power Current Valuation Drivers
We derive many important indicators used in calculating different scores of Hammond Power from analyzing Hammond Power's financial statements. These drivers represent accounts that assess Hammond Power's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Hammond Power's important valuation drivers and their relationship over time.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Market Cap | 90.1M | 99.5M | 141.2M | 238.1M | 972.6M | 1.0B | |
| Enterprise Value | 110.9M | 110.1M | 149.1M | 227.6M | 957.1M | 1.0B |
Hammond Fundamentals
| Return On Equity | 0.28 | ||||
| Return On Asset | 0.14 | ||||
| Profit Margin | 0.09 % | ||||
| Operating Margin | 0.12 % | ||||
| Current Valuation | 1.61 B | ||||
| Shares Outstanding | 9.13 M | ||||
| Shares Owned By Insiders | 6.02 % | ||||
| Shares Owned By Institutions | 29.15 % | ||||
| Number Of Shares Shorted | 46.34 K | ||||
| Price To Earning | 28.65 X | ||||
| Price To Book | 6.00 X | ||||
| Price To Sales | 2.12 X | ||||
| Revenue | 710.06 M | ||||
| Gross Profit | 165.19 M | ||||
| EBITDA | 97.28 M | ||||
| Net Income | 63.4 M | ||||
| Cash And Equivalents | 10.65 M | ||||
| Cash Per Share | 0.91 X | ||||
| Total Debt | 37.03 M | ||||
| Debt To Equity | 37.40 % | ||||
| Current Ratio | 1.50 X | ||||
| Book Value Per Share | 22.78 X | ||||
| Cash Flow From Operations | 44.11 M | ||||
| Short Ratio | 2.08 X | ||||
| Earnings Per Share | 5.70 X | ||||
| Target Price | 165.67 | ||||
| Number Of Employees | 1.9 K | ||||
| Beta | 0.84 | ||||
| Market Capitalization | 1.63 B | ||||
| Total Asset | 408.34 M | ||||
| Retained Earnings | 203.7 M | ||||
| Working Capital | 143.97 M | ||||
| Annual Yield | 0.01 % | ||||
| Five Year Return | 3.45 % | ||||
| Net Asset | 408.34 M | ||||
| Last Dividend Paid | 0.85 |
About Hammond Power Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Hammond Power Solutions's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Hammond Power using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Hammond Power Solutions based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Pair Trading with Hammond Power
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Hammond Power position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hammond Power will appreciate offsetting losses from the drop in the long position's value.Moving together with Hammond Stock
The ability to find closely correlated positions to Hammond Power could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Hammond Power when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Hammond Power - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Hammond Power Solutions to buy it.
The correlation of Hammond Power is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Hammond Power moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Hammond Power Solutions moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Hammond Power can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Additional Tools for Hammond Stock Analysis
When running Hammond Power's price analysis, check to measure Hammond Power's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Hammond Power is operating at the current time. Most of Hammond Power's value examination focuses on studying past and present price action to predict the probability of Hammond Power's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Hammond Power's price. Additionally, you may evaluate how the addition of Hammond Power to your portfolios can decrease your overall portfolio volatility.