Hammond Mfg Cl A SV (HMM.A) AI Stock Analysis

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Hammond Mfg Cl A SV

(TSX:HMM.A)

Select Model

Rating:78Outperform

Price Target:CAD 33.00▲(23.97% Upside)

Action:reiterated

Date:11/06/26

Strong financial performance from revenue expansion, margin gains, and lower leverage is the leading positive; bullish technical trends with price above moving averages and positive MACD add support; fair P/E valuation contributes modestly.

Positive Factors

Revenue and margin expansionRevenue growth combined with broad gross- and net-margin expansion indicates improved operating performance rather than growth alone. If maintained, stronger profitability can support reinvestment, resilience against cost pressure, and better earnings generation over the next several quarters.

Negative Factors

Weak free-cash-flow conversionFree cash flow materially below reported earnings indicates that profit conversion is currently weaker than accounting results suggest. Continued reinvestment or working-capital demands could constrain internally funded growth and reduce flexibility for dividends, debt reduction, or other capital allocation.

Hammond Mfg Cl A SV (HMM.A) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 301.72M
Dividend Yield: 0.23%
Average Volume (3M): 21.51K
Price to Earnings (P/E): 13.3
Beta (1Y): 0.31
Revenue Growth: 17.66%
EPS Growth: 32.06%
Country: Canada
Employees: 1,041
Sector: Industrials
Sector Strength: 63
Industry: Electrical Equipment & Parts

Hammond Mfg Cl A SV Business Overview & Revenue Model

Company Description

Hammond Manufacturing Company Limited, together with its subsidiaries, designs, manufactures, and sells electrical and electronic components in Canada, the United States, the United Kingdom, and Australia. The company offers electrical enclosures cab...

How the Company Makes Money

Hammond Manufacturing makes money primarily by manufacturing and selling its product lines—most notably transformers and electrical/electronic enclosures—and collecting revenue when these goods are shipped to customers. Revenue is generated from (1)...

Hammond Mfg Cl A SV Financial Statement Overview

Summary

Strong revenue growth to 318.8M TTM with gross margin 36.5% and net margin 7.2%; balance sheet improving with debt-to-equity at 0.38 and ROE 13.5%; operating cash flow solid at 35.9M though FCF shows some recent volatility.

Income Statement

84Very Positive

Balance Sheet

82Very Positive

Cash Flow

71Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	318.82M	281.41M	244.90M	238.28M	225.92M	190.13M
Gross Profit	116.38M	91.39M	90.90M	86.21M	71.63M	56.00M
EBITDA	45.61M	33.38M	37.79M	36.61M	25.54M	18.43M
Net Income	22.84M	14.41M	18.37M	18.76M	12.00M	7.70M
Balance Sheet
Total Assets	266.39M	240.26M	214.79M	189.54M	168.00M	136.98M
Cash, Cash Equivalents and Short-Term Investments	38.02M	33.07M	24.71M	8.89M	942.00K	4.07M
Total Debt	58.04M	60.30M	56.73M	56.45M	48.39M	35.53M
Total Liabilities	113.17M	108.63M	95.25M	90.54M	86.46M	68.28M
Stockholders Equity	153.22M	131.64M	119.53M	99.00M	81.55M	68.69M
Cash Flow
Free Cash Flow	16.12M	19.79M	21.61M	3.13M	-15.39M	3.36M
Operating Cash Flow	35.92M	25.47M	33.66M	16.89M	4.82M	14.92M
Investing Cash Flow	-19.54M	-5.78M	-12.04M	-13.62M	-20.16M	-11.54M
Financing Cash Flow	-9.41M	-10.17M	-7.37M	5.20M	11.09M	-1.96M

Hammond Mfg Cl A SV Technical Analysis

Technical Analysis SentimentPositive

Last Price26.62

Price Trends

50DMA26.70Negative

100DMA23.14Positive

200DMA18.03Positive

Market Momentum

MACD0.19Positive

RSI49.28Neutral

STOCH17.04Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HMM.A, the sentiment is Positive. The current price of 26.62 is above the 20-day moving average (MA) of 26.60, below the 50-day MA of 26.70, and above the 200-day MA of 18.03, indicating a neutral trend. The MACD of 0.19 indicates Positive momentum. The RSI at 49.28 is Neutral, neither overbought nor oversold. The STOCH value of 17.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HMM.A.

Hammond Mfg Cl A SV Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

TSE:HMM.A against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:HMM.A	78Outperform	CAD 304.44M	13.32	16.10%	0.23%	17.66%	32.06%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TSE:HPS.A	63Neutral	CAD 2.53B	34.40	18.94%	0.54%	51.29%	-10.97%
TSE:GRID	61Neutral	CAD 259.20M	-248.04	-5.42%	―	11.87%	―
TSE:LPS	38Underperform	CAD 16.42M	-7.83	6067.59%	―	0.60%	50.19%

* Industrials Sector Average

Performance Comparison

TSE:HMM.A and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:HMM.A	Hammond Mfg Cl A SV	26.62	14.87	126.55%
TSE:LPS	Legend Power Systems	0.10	-0.01	-12.50%
TSE:HPS.A	Hammond Power Solutions (OTC)	207.27	53.57	34.85%
TSE:GRID	Tantalus Systems Holding Inc	4.77	0.87	22.31%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Nov 06, 2026

Hammond Mfg Cl A SV AI Stock Analysis