Hammond Power SolutionsHMDPF -7.48%82 Altman Z-Score is 11.45 as of Jun. 24, 2026, which is 208% above its 10-year median of 3.72. 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 3,013 Industrial Products companies, Hammond Power Solutions ranks better than 90.57% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Good Sign:
Altman Z-score of 12.75 is strong.
Hammond Power Solutions has a Altman Z-Score of 11.45, indicating it is in Safe Zones. This implies the Altman Z-Score is strong.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for Hammond Power Solutions's Altman Z-Score or its related term are showing as below:
HMDPF'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.83 Med: 3.72 Max: 12.75
Current: 12.75
During the past 13 years, Hammond Power Solutions's highest Altman Z-Score was 12.75. The lowest was 2.83. And the median was 3.72.
Hammond Power Solutions (OTCPK:HMDPF) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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 Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Hammond Power Solutions's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where Hammond Power Solutions's Altman Z-Score falls into.
Hammond Power Solutions Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
Hammond Power Solutions (HMDPF) has a Altman Z-Score of 11.45 as of Jun. 24, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on Hammond Power Solutions and its competitors. This is 208% above median its historical median of 3.72. Over the past decade, Hammond Power Solutions' Altman Z-Score has ranged from 2.83 to 12.75. According to the industry distribution chart, Hammond Power Solutions ranks #284 out of 3013 companies in the Industrial Products industry, placing it in the top 9.4%.
Is Hammond Power Solutions' Altman Z-Score too high?
Hammond Power Solutions' current Altman Z-Score of 11.45 is 208% above median its 10-year median of 3.72. Over the past 10 years, this metric has ranged from a low of 2.83 to a high of 12.75. The Industrial Products industry median Altman Z-Score is 3.42. Hammond Power Solutions' value of 11.45 is 234.8% above this industry median. Based on the distribution chart, Hammond Power Solutions ranks #284 out of 3013 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' Altman Z-Score compare to VRT and BE?
According to the Industrial Products industry distribution chart, Hammond Power Solutions ranks #284 out of 3013 companies for Altman Z-Score. This places Hammond Power Solutions in the top 9% of its industry — outperforming the majority of peers. The industry median Altman Z-Score is 3.42. Hammond Power Solutions' value of 11.45 is 234.8% above this benchmark. Historically, Hammond Power Solutions' own Altman Z-Score has ranged from 2.83 to 12.75 over the past decade. While the company's 10-year median is 3.72 vs. the industry median of 3.42, 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 Altman Z-Score for an Industrial Products company?
The median Altman Z-Score among Industrial Products companies is 3.42, based on 3,013 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hammond Power Solutions's current Altman Z-Score of 11.45 is 234.8% 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on Hammond Power Solutions and its competitors. For the Industrial Products industry, the median Altman Z-Score is 3.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hammond Power Solutions's current Altman Z-Score is 11.45, which is 208% above median its own 10-year median of 3.72. 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 Altman Z-Score is 11.45, which is 208% above median its 10-year median of 3.72 and 234.8% above the Industrial Products industry median of 3.42. 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 Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For Hammond Power Solutions (HMDPF), the current Altman Z-Score is 11.45 as of Jun. 24, 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:
Altman Z-Score: 11.45 (208% above median its 10-year median of 3.72)
GF Value™: $114.14 vs. price of $218.02 (91% above fair value)
Industry Position: 234.8% above the Industrial Products median (#284 of 3013)
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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