Hammond Power SolutionsHMDPF -9.12%82 Return-on-Tangible-Asset is 13.48% as of Mar. 2026, which is 74% above its 10-year median of 7.74. GuruFocus rates HMDPF with a GF Score™ of 82/100 and a GF Value™ of $108.41 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 3,074 Industrial Products companies, Hammond Power Solutions ranks better than 90.21% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Hammond Power Solutions's annualizedNet Income for the quarter that ended in Mar. 2026 was $57.0 Mil. Hammond Power Solutions's average total tangible assets for the quarter that ended in Mar. 2026 was $423.3 Mil. Therefore, Hammond Power Solutions's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 13.48%.
The historical rank and industry rank for Hammond Power Solutions's Return-on-Tangible-Asset or its related term are showing as below:
HMDPF'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -7.37 Med: 7.74 Max: 18.84
Current: 12.14
During the past 13 years, Hammond Power Solutions's highest Return-on-Tangible-Asset was 18.84%. The lowest was -7.37%. And the median was 7.74%.
HMDPF's Return-on-Tangible-Asset is ranked better than 90.21% of 3074
companies
in the Industrial Products industry
Industry Median: 3.235
vs HMDPF: 12.14
Hammond Power Solutions (OTCPK:HMDPF) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Hammond Power Solutions Return-on-Tangible-Asset Related Terms
Hammond Power Solutions Return-on-Tangible-Asset Historical Data
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The historical data trend for Hammond Power Solutions's Return-on-Tangible-Asset 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.
Hammond Power Solutions Return-on-Tangible-Asset Chart
HMDPF vs VRT, BE: Return-on-Tangible-Asset Comparison
For the Electrical Equipment & Parts subindustry, Hammond Power Solutions's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 13.48% mean?
Hammond Power Solutions (HMDPF) has a Return-on-Tangible-Asset of 13.48% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hammond Power Solutions and its competitors. This is 74% above median its historical median of 7.74. According to the industry distribution chart, Hammond Power Solutions ranks #301 out of 3074 companies in the Industrial Products industry, placing it in the top 9.8%.
Is Hammond Power Solutions' Return-on-Tangible-Asset too high?
Hammond Power Solutions' current Return-on-Tangible-Asset of 13.48% is 74% above median its 10-year median of 7.74. The Industrial Products industry median Return-on-Tangible-Asset is 3.24. Hammond Power Solutions' value of 13.48% is 316.7% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #301 out of 3074 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. 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' Return-on-Tangible-Asset compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #301 out of 3074 companies for Return-on-Tangible-Asset. This places Hammond Power Solutions in the top 10% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 3.24. Hammond Power Solutions' value of 13.48% is 316.7% above this benchmark. While the company's 10-year median is 7.74 vs. the industry median of 3.24, 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 Return-on-Tangible-Asset for an Industrial Products company?
The median Return-on-Tangible-Asset among Industrial Products companies is 3.24, based on 3,074 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current Return-on-Tangible-Asset of 13.48% is 316.7% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median Return-on-Tangible-Asset is 3.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Return-on-Tangible-Asset is 13.48%, which is 74% above median its own 10-year median of 7.74. 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 $108.41, compared to a current price of $214.97 — trading 98.3% above its estimated fair value. The current Return-on-Tangible-Asset is 13.48%, which is 74% above median its 10-year median of 7.74 and 316.7% above the Industrial Products industry median of 3.24. 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 Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current Return-on-Tangible-Asset is 13.48% 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 $214.97 is trading 98.3% above its estimated GF Value™ of $108.41.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
Return-on-Tangible-Asset: 13.48% (74% above median its 10-year median of 7.74)
GF Value™: $108.41 vs. price of $214.97 (98.3% above fair value)
Industry Position: 316.7% above the Industrial Products median (#301 of 3074)
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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