Cliff Note #20 - Hammond Power Solutions | $HMDPF, $HPS-A.TO
Another strong industrial player
What They Do
Hammond Power Solutions serves greatly diversified markets: oil and gas, mining, data centers, hydro generation, solar power, energy storage, electric vehicle charging stations, microchip manufacturing, industrial expansion, LNG exports, and wastewater treatment.
Highlights
(First quarter 2022 compared to first quarter 2021)
Sales increased 60% to a record $128 million
Net Earnings of $8.6M, exceeding the first quarter of 2021 by $6.3M
Earnings per share increased to $0.72, compared with $0.19 in Q1 2021
Order backlog increased 92%
More on Reasons to add to the Index, Content Supporting the Overarching Themes, Valuation, and Research Tasks…
** ABOUT TO EXPERIENCE A PERIOD OF ELEVATED EPS GROWTH FOR MULTIPLE QUARTERS **
The run rate EPS is now $2.80. even a meager P/E of 10 equals elevated share price of about $28.
Research Tasks:
When will the capacity expansion be completed?
How much additional revenue can the capacity expansion accommodate?
What target markets are fueling growth?
Debt reduction plans.
Additional Info + Research:
“…The diversification of geography, channels, markets and products - an important differentiator for HPS - has our business firing on all cylinders. We are seeing record booking rates in both the U.S. and Canada, along with very exciting opportunities in Mexico. In India, we benefited from strong domestic and export demand, which drove our strongest quarter in sales since we acquired our Indian transformer company. Our U.S. distributor channel continues to be the biggest engine of growth, and our OEM business is growing at its fastest pace in 7 years,” said Bill Hammond, CEO and Chairman of Hammond Power…."
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