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Added to YB: 2026-02-04

Pitch date: 2026-02-01

HMM-A.TO [bullish]

Hammond Manufacturing Company Limited

+11.31%

current return

Author Info

The Financial Pen is a finance industry veteran hunting mispriced quality. They investigate misunderstood opportunities, spotlight overlooked bets, and deploy capital across U.S. and pan-Asian markets. Sign up for the newsletter.

Company Info

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.

Market Cap

CAD 114.9M

Pitch Price

CAD 9.81

Price Target

N/A

Dividend

0.59%

EV/EBITDA

3.99

P/E

6.67

EV/Sales

0.54

Sector

Electrical Equipment

Category

value

Show full summary:
Hammond Manufacturing: 15% Returns on Capital at Asset-Backed Prices

HMM-A.TO: Trades 7x earnings vs sibling Hammond Power at 24x despite serving same customers. Industrial enclosure maker w/ 15% ROIC, 15% FCF yield, inventory-first model creating availability advantage. Record 2024 revenue, margins expanded to 37% through inflation proving pricing power. Expanding capacity for data center/edge computing demand. Undervalued vs peers at 4x EV/EBITDA.

Read full article (17 min)