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Eaton Corporation PLC (ETN)
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GE Aerospace (GE)
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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
Q: Regarding Hammond Power. Your thoughts on if the margins are sustainable considering the supply constrained environment of the pandemic and who is their number one competitor ?
5i Research Answer:
In the last-twelve-months gross profit margin is 32%, EBITDA margin is ~13%, and net income margin is 9.25%. All of these figures improved in Q3 on a quarterly basis. We think margins are sustainable, especially as HPS.A continues to grow its top line and introduce higher margin products. Top North American competitors would be General Electric (GE) and Eaton Corporation (ETN). International competitors are ABB Ltd. and Schneider Electric SE.