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Hammond Power Solutions Inc. Class A Subordinate Voting Shares (HPS.A)
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Hammond Manufacturing Company Limited Class A Subordinate Voting Shares (HMM.A)
Q: Your opinion and recommendations on these Hammond companies, please.
5i Research Answer:
We like HPS.A for power/transformer exposure. It is 13X earnings, has a 1.08% dividend, a good balance sheet and good growth. Shares soared prior to concerns on AI growth and tariffs and then fell sharply. But they are working back a bit now. It is a small company so risks are above-average, but we like its prospects. HMM.A is much smaller so even riskier, but it is quite cheap (5x earnings) on valuation. It focuses on electronic enclosures. Dividend is 0.67%. It has some debt but growth has been decent. We would prefer HPS.A of the two, but would consider both pretty decent small caps overall.