With the recent quarterly release I see that HPS continues to do well.
I'm just curious as to how they compare to their competition in this space?
Are there larger or smaller companies that are doing equally as well and therefore also worth looking at?
Or is this somewhat of a moat business?
Thanks!
HPS.a has been in business for over 100 years and has employees in 21 global locations. The expanding US distribution network and revenue in the US and Mexico helped the company beat expectations. The backlog expansion has also been impressive. The company is said to have a 25% market share in North America. The industry is seeing an explosion in demand for the electrification of the world and while HPS.a is not the only player, it is one of the oldest. It runs its factories at full or near-full capacity and is still expanding its backlog. The company is also investing to increase its production capacity. Some of its competitors include General Electric, Siemens, Mitsubishi Electric, and Toshiba. HPS comes in as a niche player focused on a niche portfolio of products. Its competition is big, but its products/niche is not a focus for the larger companies, really. Given the expanding industry and HPS's valuation, we think HPS presents itself as a decent opportunity.