Hammond Power SolutionsHMDPF -7.48%82 Gross Margin % is 30.13% as of Mar. 2026, which is 12% above its 10-year median of 26.98. GuruFocus rates HMDPF with a GF Score™ of 82/100 and a GF Value™ of $114.28 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,003 Industrial Products companies, Hammond Power Solutions ranks better than 58.54% on this metric.
HMDPF's Gross Margin % is ranked better than 58.54% of 3003
companies
in the Industrial Products industry
Industry Median: 26.79
vs HMDPF: 30.01
Hammond Power Solutions had a gross margin of 30.13% for the quarter that ended in Mar. 2026 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Hammond Power Solutions was 3.70% per year.
Hammond Power Solutions (OTCPK:HMDPF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Hammond Power Solutions had a gross margin of 30.13% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Hammond Power Solutions Gross Margin % Related Terms
Hammond Power Solutions Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Hammond Power Solutions (HMDPF) has a Gross Margin % of 30.13% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Hammond Power Solutions and its competitors. This is 12% above median its historical median of 26.98. Over the past decade, Hammond Power Solutions' Gross Margin % has ranged from 23.22 to 32.76. According to the industry distribution chart, Hammond Power Solutions ranks #1245 out of 3003 companies in the Industrial Products industry, placing it in the top 41.5%.
Is Hammond Power Solutions' Gross Margin % too high?
Hammond Power Solutions' current Gross Margin % of 30.13% is 12% above median its 10-year median of 26.98. Over the past 10 years, this metric has ranged from a low of 23.22 to a high of 32.76. The Industrial Products industry median Gross Margin % is 26.79. Hammond Power Solutions' value of 30.13% is 12.5% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #1245 out of 3003 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' Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #1245 out of 3003 companies for Gross Margin %. This puts Hammond Power Solutions in the upper half of its industry. The industry median Gross Margin % is 26.79. Hammond Power Solutions' value of 30.13% is 12.5% above this benchmark. Historically, Hammond Power Solutions' own Gross Margin % has ranged from 23.22 to 32.76 over the past decade. While the company's 10-year median is 26.98 vs. the industry median of 26.79, Hammond Power Solutions has consistently been above 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 Gross Margin % for an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.79, based on 3,003 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current Gross Margin % of 30.13% is 12.5% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Gross Margin % is 30.13%, which is 12% above median its own 10-year median of 26.98. 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 $114.28, compared to a current price of $218.02 — trading 90.8% above its estimated fair value. The current Gross Margin % is 30.13%, which is 12% above median its 10-year median of 26.98 and 12.5% above the Industrial Products industry median of 26.79. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current Gross Margin % is 30.13% 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 $218.02 is trading 90.8% above its estimated GF Value™ of $114.28.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
Gross Margin %: 30.13% (12% above median its 10-year median of 26.98)
GF Value™: $114.28 vs. price of $218.02 (90.8% above fair value)
Industry Position: 12.5% above the Industrial Products median (#1245 of 3003)
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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