Hi Carl,
I am not familiar with this company, but at first glance - the company does seem cheap. It is trading at only 4.94 times earnings, 0.60 times book value and 0.20 times sales. In comparison, its five-year averages are 16.98, 0.72 and 0.28 respectively. Now, these 5YR averages seem deflated as it has been on a steady downtrend for that period.
Although it is not a high growth company, it has consistently grown revenue year over year and it has a 5YR growth rate of ~5%. In 2020, it is tracking below 2019 numbers, but this is normal for MANY companies in this environment. Beside, it is only down by 7% over the first six months of the year.
The company is also paying a dividend which currently yields 5.78% and has grown for three years straight. It seems well covered with a payout ratio of 31% of earnings.
From what I have been able to tell, it has had mixed results with its international expansion efforts. However, it has recently made moves to divest itself of is money losing operations. In particular, it rid itself of its Italian operations back in 2018. Its India operations are also struggling because it was not deemed an essential service in that country - whereas it was in Canada, the US and Mexico. In Q2 sales dropped 50% in India as a result.
All this being said - this does seem like an undervalued small cap and a nice find. I can definitely see potential for a material rebound on the other side of this pandemic. The global transformer industry is supposed to grow at a CAGR of 6.7% through 2027 which means there should be consistent growth at Hammond. Of note, volume is quite low on this stock which increases its risk profile.
Mat