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.
Over the past 5 years, HAWKINS INC has experienced impressive revenue growth, with 10.56% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
With a robust ROIC excluding cash and goodwill at 22.95%, 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.
With a favorable Debt/Free Cash Flow Ratio of 1.35, 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.
With a robust Profit Quality (5-year) ratio of 82.34%, HAWKINS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
With a robust 5-year EBIT growth of 23.1%, HAWKINS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
The EBIT 5-year growth of HAWKINS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.
Zooming in on the fundamentals.
ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.
Taking everything into account, HWKN scores 7 out of 10 in our fundamental rating. HWKN was compared to 84 industry peers in the Chemicals industry. HWKN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, HWKN is valued expensive at the moment. 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.
Disclaimer
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.