Hammond Power SolutionsHMDPF -7.48%82 ROE % is 21.71% as of Mar. 2026, which is 72% above its 10-year median of 12.61. 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 3,009 Industrial Products companies, Hammond Power Solutions ranks better than 88.43% on this metric.
The historical rank and industry rank for Hammond Power Solutions's ROE % or its related term are showing as below:
HMDPF'
s ROE % Range Over the Past 10 Years
Min: -11.55 Med: 12.61 Max: 31.13
Current: 19.03
During the past 13 years, Hammond Power Solutions's highest ROE % was 31.13%. The lowest was -11.55%. And the median was 12.61%.
HMDPF's ROE % is ranked better than 88.43% of 3009
companies
in the Industrial Products industry
Industry Median: 5.91
vs HMDPF: 19.03
Hammond Power Solutions (OTCPK:HMDPF) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* 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 ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's ROE % distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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.
ROE % is displayed in the 30-year financial page.
Hammond Power Solutions (HMDPF) has a ROE % of 21.71% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hammond Power Solutions and its competitors. This is 72% above median its historical median of 12.61. According to the industry distribution chart, Hammond Power Solutions ranks #348 out of 3009 companies in the Industrial Products industry, placing it in the top 11.6%.
Is Hammond Power Solutions' ROE % too high?
Hammond Power Solutions' current ROE % of 21.71% is 72% above median its 10-year median of 12.61. The Industrial Products industry median ROE % is 5.91. Hammond Power Solutions' value of 21.71% is 267.3% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #348 out of 3009 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' ROE % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #348 out of 3009 companies for ROE %. This places Hammond Power Solutions in the top 12% of its industry — outperforming the majority of peers. The industry median ROE % is 5.91. Hammond Power Solutions' value of 21.71% is 267.3% above this benchmark. While the company's 10-year median is 12.61 vs. the industry median of 5.91, 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 ROE % for an Industrial Products company?
The median ROE % among Industrial Products companies is 5.91, based on 3,009 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current ROE % of 21.71% is 267.3% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current ROE % is 21.71%, which is 72% above median its own 10-year median of 12.61. 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 ROE % is 21.71%, which is 72% above median its 10-year median of 12.61 and 267.3% above the Industrial Products industry median of 5.91. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current ROE % is 21.71% 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:
ROE %: 21.71% (72% above median its 10-year median of 12.61)
GF Value™: $114.14 vs. price of $218.02 (91% above fair value)
Industry Position: 267.3% above the Industrial Products median (#348 of 3009)
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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