Hammond Power Solutions (HPS-A.TO), mcap=C$179m, price C$15.48 vs C$14.87

– A cheap Canadian manufacturer of dry transformers for industrial power applications – “kleenex” of transformers, especially in public infrastructure projects.
– Leveraged to benefit from industrial infrastructure build-out and electricity grid upgrades in North America.
– Recent quarters have been incredibly successful and the trend is expected to continue.
– Operating since 1920 and profitable every year since going public in 2005.
– Capital light with longer-term 15% ROIC.
– 7.5% CAGR since 2017.
– Insiders own 31%

Valuation: Trades at 8.5x 2022 earnings.

Exp. gain: Not specified.

Full HPS-A.TO write-up (free guest account required):

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