5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Hammond Power Solutions's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 22.84%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Hammond Power Solutions's 5-Year ROIIC % or its related term are showing as below:
HMDPF's 5-Year ROIIC % is ranked better than 80.23% of 2787
companies
in the Industrial Products industry
Industry Median: 4.57
vs HMDPF: 22.84
Hammond Power Solutions (OTCPK:HMDPF) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Hammond Power Solutions 5-Year ROIIC % Related Terms
Hammond Power Solutions 5-Year ROIIC % 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 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Hammond Power Solutions (HMDPF) has a 5-Year ROIIC % of 22.84 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Hammond Power Solutions and its competitors. According to the industry distribution chart, Hammond Power Solutions ranks #551 out of 2787 companies in the Industrial Products industry, placing it in the top 19.8%.
Is Hammond Power Solutions' 5-Year ROIIC % too high?
Hammond Power Solutions' current 5-Year ROIIC % is 22.84. The Industrial Products industry median 5-Year ROIIC % is 4.57. Hammond Power Solutions' value of 22.84 is 399.8% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #551 out of 2787 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' 5-Year ROIIC % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #551 out of 2787 companies for 5-Year ROIIC %. This places Hammond Power Solutions in the top 20% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 4.57. Hammond Power Solutions' value of 22.84 is 399.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.57, based on 2,787 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current 5-Year ROIIC % of 22.84 is 399.8% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current 5-Year ROIIC % is 22.84. 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 $115.12, compared to a current price of $231.21 — trading 100.8% above its estimated fair value. The current 5-Year ROIIC % is 22.84 and 399.8% above the Industrial Products industry median of 4.57. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current 5-Year ROIIC % is 22.84 as of Dec. 2025. 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 $231.21 is trading 100.8% above its estimated GF Value™ of $115.12.
GuruFocus considers Hammond Power Solutions to be Significantly Overvalued.
Key valuation signals for HMDPF:
5-Year ROIIC %: 22.84
GF Value™: $115.12 vs. price of $231.21 (100.8% above fair value)
Industry Position: 399.8% above the Industrial Products median (#551 of 2787)
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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5-Year ROIIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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