Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if HAWKINS INC (NASDAQ:HWKN) is suited for quality investing. Investors should of course do their own research, but we spotted HAWKINS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
A Deep Dive into HAWKINS INC's Quality Metrics.
HAWKINS INC has shown strong performance in revenue growth over the past 5 years, with a 13.15% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
The ROIC excluding cash and goodwill of HAWKINS INC stands at 19.24%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
With a favorable Debt/Free Cash Flow Ratio of 1.14, HAWKINS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
HAWKINS INC exhibits impressive Profit Quality (5-year) with a 79.66% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
HAWKINS INC has experienced impressive EBIT growth over the past 5 years, with 25.56% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
HAWKINS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.
Fundamental analysis of NASDAQ:HWKN
As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.
We assign a fundamental rating of 6 out of 10 to HWKN. HWKN was compared to 86 industry peers in the Chemicals industry. Both the health and profitability get an excellent rating, making HWKN a very profitable company, without any liquidiy or solvency issues. HWKN is not valued too expensively and it also shows a decent growth rate.
Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.