Hammond Power SolutionsHMDPF 82 Debt-to-EBITDA is 0.61 as of Mar. 2026, which is 33% below its 10-year median of 0.91. GuruFocus rates HMDPF with a GF Score™ of 82/100 and a GF Value™ of $114.87 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,329 Industrial Products companies, Hammond Power Solutions ranks better than 69.86% on this metric.
Debt-to-EBITDA measures a company's ability to pay off its debt.
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
The historical rank and industry rank for Hammond Power Solutions's Debt-to-EBITDA or its related term are showing as below:
HMDPF'
s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.25 Med: 0.91 Max: 2.54
Current: 0.72
During the past 13 years, the highest Debt-to-EBITDA Ratio of Hammond Power Solutions was 2.54. The lowest was 0.25. And the median was 0.91.
HMDPF's Debt-to-EBITDA is ranked better than 69.86% of 2329
companies
in the Industrial Products industry
Industry Median: 1.69
vs HMDPF: 0.72
Hammond Power Solutions (OTCPK:HMDPF) Debt-to-EBITDA Explanation
A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.
According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.
Hammond Power Solutions Debt-to-EBITDA Related Terms
Hammond Power Solutions Debt-to-EBITDA Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Electrical Equipment & Parts subindustry, Hammond Power Solutions's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Hammond Power Solutions Debt-to-EBITDA vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Debt-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Debt-to-EBITDA falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data,
the EBITDA data used here is four times the quarterly (Mar. 2026) EBITDA data.
Hammond Power Solutions (HMDPF) has a Debt-to-EBITDA of 0.61 as of Mar. 2026. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hammond Power Solutions. This is 33% below median its historical median of 0.91. Over the past decade, Hammond Power Solutions' Debt-to-EBITDA has ranged from 0.25 to 2.54. According to the industry distribution chart, Hammond Power Solutions ranks #702 out of 2329 companies in the Industrial Products industry, placing it in the top 30.1%.
Is Hammond Power Solutions' Debt-to-EBITDA too high?
Hammond Power Solutions' current Debt-to-EBITDA of 0.61 is 33% below median its 10-year median of 0.91. Over the past 10 years, this metric has ranged from a low of 0.25 to a high of 2.54. The Industrial Products industry median Debt-to-EBITDA is 1.69. Hammond Power Solutions' value of 0.61 is 63.9% below this industry median. Based on the distribution chart, Hammond Power Solutions ranks #702 out of 2329 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Hammond Power Solutions has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hammond Power Solutions' Debt-to-EBITDA compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #702 out of 2329 companies for Debt-to-EBITDA. This puts Hammond Power Solutions in the upper half of its industry. The industry median Debt-to-EBITDA is 1.69. Hammond Power Solutions' value of 0.61 is 63.9% below this benchmark. Historically, Hammond Power Solutions' own Debt-to-EBITDA has ranged from 0.25 to 2.54 over the past decade. While the company's 10-year median is 0.91 vs. the industry median of 1.69, Hammond Power Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-EBITDA for an Industrial Products company?
The median Debt-to-EBITDA among Industrial Products companies is 1.69, based on 2,329 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current Debt-to-EBITDA of 0.61 is 63.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-EBITDA mean?
A high Debt-to-EBITDA can signal that a stock is expensive relative to its fundamentals. Debt-to-EBITDA ratio represents the ratio of total debt to total earnings before interest, taxes, depreciation and amortization. View historical data on Hammond Power Solutions. For the Industrial Products industry, the median Debt-to-EBITDA is 1.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Debt-to-EBITDA is 0.61, which is 33% below median its own 10-year median of 0.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hammond Power Solutions stock overvalued right now?
Based on GuruFocus' analysis, Hammond Power Solutions (HMDPF) is currently considered Significantly Overvalued. The stock's GF Value™ is $114.87, compared to a current price of $217.87 — trading 89.7% above its estimated fair value. The current Debt-to-EBITDA is 0.61, which is 33% below median its 10-year median of 0.91 and 63.9% below the Industrial Products industry median of 1.69. Hammond Power Solutions' overall GF Score™ is 82/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-EBITDA calculated?
Debt-to-EBITDA is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current Debt-to-EBITDA is 0.61 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Hammond Power Solutions (HMDPF) Overvalued in 2026?
Based on GuruFocus' analysis, Hammond Power Solutions stock appears to be overvalued.
The current stock price of $217.87 is trading 89.7% above its estimated GF Value™ of $114.87.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
Debt-to-EBITDA: 0.61 (33% below median its 10-year median of 0.91)
GF Value™: $114.87 vs. price of $217.87 (89.7% above fair value)
Industry Position: 63.9% below the Industrial Products median (#702 of 2329)
No single metric tells the full story. See the HMDPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hammond Power Solutions Inc is engaged in designing and manufacturing custom electrical magnetics, cast resin, custom liquid-filled distribution and power transformers, and standard electrical transformers, serving the electrical and electronic industries. The company has manufacturing plants in Canada, the United States, Mexico and India. The company operates in various geographical markets including Canada, the United States, Mexico, and India from which it derives majority revenue in the United States and Mexico.
82GF Score
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Debt-to-EBITDA is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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