Hammond Power Profitability Analysis
| HPS-A Stock | CAD 134.79 6.99 4.93% |
Net Income | First Reported 2001-03-31 | Previous Quarter 23.6 M | Current Value 16.3 M | Quarterly Volatility 5 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.21 | 0.3253 |
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| Operating Profit Margin | 0.13 | 0.1221 |
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For Hammond Power profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Hammond Power to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Hammond Power Solutions utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Hammond Power's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Hammond Power Solutions over time as well as its relative position and ranking within its peers.
Hammond |
Hammond Power Solutions Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Hammond Power's current stock value. Our valuation model uses many indicators to compare Hammond Power value to that of its competitors to determine the firm's financial worth. Hammond Power Solutions is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in return on asset category among its peers reporting about 0.51 of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Hammond Power Solutions is roughly 1.96 . At this time, Hammond Power's Return On Equity is comparatively stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Hammond Power's earnings, one of the primary drivers of an investment's value.Hammond Return On Asset vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Hammond Power |
| = | 0.28 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Hammond Power |
| = | 0.14 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Hammond Return On Asset Comparison
Hammond Power is currently under evaluation in return on asset category among its peers.
Hammond Power Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Hammond Power, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Hammond Power will eventually generate negative long term returns. The profitability progress is the general direction of Hammond Power's change in net profit over the period of time. It can combine multiple indicators of Hammond Power, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | 8.6 M | 6.9 M | |
| Operating Income | 86.7 M | 91.1 M | |
| Income Before Tax | 84 M | 88.2 M | |
| Total Other Income Expense Net | -1.3 M | -1.3 M | |
| Net Income | 63.4 M | 66.6 M | |
| Income Tax Expense | 20.6 M | 21.6 M | |
| Net Income From Continuing Ops | 63.4 M | 66.6 M | |
| Net Income Applicable To Common Shares | 51.6 M | 54.1 M | |
| Net Interest Income | -1.4 M | -1.5 M | |
| Change To Netincome | 854.5 K | 811.7 K | |
| Net Income Per Share | 5.33 | 5.59 | |
| Income Quality | 0.70 | 0.73 | |
| Net Income Per E B T | 0.75 | 0.62 |
Hammond Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Hammond Power. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Hammond Power position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Hammond Power's important profitability drivers and their relationship over time.
Use Hammond Power in pair-trading
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.Hammond Power Pair Trading
Hammond Power Solutions Pair Trading Analysis
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.Use Investing Themes to Complement your Hammond Power position
In addition to having Hammond Power in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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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.