Hammond Power SolutionsHMDPF -7.48%82 Interest Coverage is 28.16 as of Mar. 2026, which is 26% above its 10-year median of 22.32. GuruFocus rates HMDPF with a GF Score™ of 82/100 and a GF Value™ of $114.14 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 2,330 Industrial Products companies, Hammond Power Solutions ranks better than 57.64% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Hammond Power Solutions's
Operating Income
for the
three
months ended in Mar. 2026 was $21.3 Mil. Hammond Power Solutions's Interest Expense for the
three
months ended in Mar. 2026 was $-0.8 Mil.
Hammond Power Solutions's interest coverage for the quarter that ended in Mar. 2026 was 28.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Hammond Power Solutions's Interest Coverage or its related term are showing as below:
HMDPF'
s Interest Coverage Range Over the Past 10 Years
Min: 8.18 Med: 22.32 Max: 79.26
Current: 21.37
HMDPF's Interest Coverage is ranked better than 57.64% of 2330
companies
in the Industrial Products industry
Industry Median: 14.835
vs HMDPF: 21.37
Hammond Power Solutions (OTCPK:HMDPF) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Hammond Power Solutions Interest Coverage Related Terms
Hammond Power Solutions Interest Coverage Historical Data
* Premium members only.
The historical data trend for Hammond Power Solutions's Interest Coverage can be seen below:
* 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
For the Electrical Equipment & Parts subindustry, Hammond Power Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Interest Coverage falls into.
Hammond Power Solutions Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Hammond Power Solutions (HMDPF) has a Interest Coverage of 28.16 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hammond Power Solutions and its competitors. This is 26% above median its historical median of 22.32. Over the past decade, Hammond Power Solutions' Interest Coverage has ranged from 8.18 to 79.26. According to the industry distribution chart, Hammond Power Solutions ranks #987 out of 2330 companies in the Industrial Products industry, placing it in the top 42.4%.
Is Hammond Power Solutions' Interest Coverage too high?
Hammond Power Solutions' current Interest Coverage of 28.16 is 26% above median its 10-year median of 22.32. Over the past 10 years, this metric has ranged from a low of 8.18 to a high of 79.26. The Industrial Products industry median Interest Coverage is 14.84. Hammond Power Solutions' value of 28.16 is 89.8% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #987 out of 2330 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' Interest Coverage compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #987 out of 2330 companies for Interest Coverage. This puts Hammond Power Solutions in the upper half of its industry. The industry median Interest Coverage is 14.84. Hammond Power Solutions' value of 28.16 is 89.8% above this benchmark. Historically, Hammond Power Solutions' own Interest Coverage has ranged from 8.18 to 79.26 over the past decade. While the company's 10-year median is 22.32 vs. the industry median of 14.84, 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 Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.84, based on 2,330 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current Interest Coverage of 28.16 is 89.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Interest Coverage is 28.16, which is 26% above median its own 10-year median of 22.32. 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 $114.14, compared to a current price of $218.02 — trading 91% above its estimated fair value. The current Interest Coverage is 28.16, which is 26% above median its 10-year median of 22.32 and 89.8% above the Industrial Products industry median of 14.84. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current Interest Coverage is 28.16 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 91% above its estimated GF Value™ of $114.14.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
Interest Coverage: 28.16 (26% above median its 10-year median of 22.32)
GF Value™: $114.14 vs. price of $218.02 (91% above fair value)
Industry Position: 89.8% above the Industrial Products median (#987 of 2330)
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
Get the complete analysis for HMDPF
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