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.
Exploring Why NASDAQ:HWKN Holds Appeal for Quality Investors.
The 5-year revenue growth of HAWKINS INC has been remarkable, with 13.15% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
With a robust ROIC excluding cash and goodwill at 21.4%, HAWKINS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
HAWKINS INC maintains a healthy Debt/Free Cash Flow Ratio of 1.13, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
The Profit Quality (5-year) of HAWKINS INC stands at 79.66%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
HAWKINS INC has consistently achieved strong EBIT growth over the past 5 years, with a 25.56% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
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.
How does the complete fundamental picture look for NASDAQ:HWKN?
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Overall HWKN gets a fundamental rating of 7 out of 10. We evaluated HWKN against 84 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. These ratings could make HWKN a good candidate for quality investing.
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Keep in mind
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.