153.23 USD
-1.49 (-0.96%)
153.23 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HWKN. HWKN was compared to 83 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes HWKN very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- In the past year HWKN was profitable.
- In the past year HWKN had a positive cash flow from operations.
- In the past 5 years HWKN has always been profitable.
- In the past 5 years HWKN always reported a positive cash flow from operatings.
1.2 Ratios
- HWKN has a Return On Assets of 8.45%. This is amongst the best in the industry. HWKN outperforms 90.36% of its industry peers.
- The Return On Equity of HWKN (16.40%) is better than 85.54% of its industry peers.
- HWKN's Return On Invested Capital of 10.12% is amongst the best of the industry. HWKN outperforms 84.34% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HWKN is significantly above the industry average of 6.11%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.45% | ||
| ROE | 16.4% | ||
| ROIC | 10.12% |
ROA(3y)10.86%
ROA(5y)10.06%
ROE(3y)18.01%
ROE(5y)17.3%
ROIC(3y)13.29%
ROIC(5y)12.3%
1.3 Margins
- Looking at the Profit Margin, with a value of 7.95%, HWKN is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
- In the last couple of years the Profit Margin of HWKN has grown nicely.
- HWKN's Operating Margin of 11.57% is fine compared to the rest of the industry. HWKN outperforms 62.65% of its industry peers.
- HWKN's Operating Margin has improved in the last couple of years.
- The Gross Margin of HWKN (23.03%) is comparable to the rest of the industry.
- HWKN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.57% | ||
| PM (TTM) | 7.95% | ||
| GM | 23.03% |
OM growth 3Y9.98%
OM growth 5Y9.64%
PM growth 3Y9.19%
PM growth 5Y10.49%
GM growth 3Y6.96%
GM growth 5Y4.38%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HWKN is destroying value.
- The number of shares outstanding for HWKN has been reduced compared to 1 year ago.
- HWKN has less shares outstanding than it did 5 years ago.
- HWKN has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 6.38 indicates that HWKN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of HWKN (6.38) is better than 97.59% of its industry peers.
- The Debt to FCF ratio of HWKN is 3.53, which is a good value as it means it would take HWKN, 3.53 years of fcf income to pay off all of its debts.
- HWKN has a Debt to FCF ratio of 3.53. This is amongst the best in the industry. HWKN outperforms 86.75% of its industry peers.
- A Debt/Equity ratio of 0.53 indicates that HWKN is somewhat dependend on debt financing.
- The Debt to Equity ratio of HWKN (0.53) is better than 62.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 6.38 |
ROIC/WACC0.66
WACC15.38%
2.3 Liquidity
- HWKN has a Current Ratio of 2.43. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of HWKN (2.43) is better than 67.47% of its industry peers.
- A Quick Ratio of 1.49 indicates that HWKN should not have too much problems paying its short term obligations.
- HWKN has a better Quick ratio (1.49) than 60.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.43 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
- HWKN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.53%.
- HWKN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
- HWKN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.86%.
- Measured over the past years, HWKN shows a quite strong growth in Revenue. The Revenue has been growing by 12.52% on average per year.
EPS 1Y (TTM)1.53%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%-6.9%
Revenue 1Y (TTM)11.86%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%13.52%
3.2 Future
- Based on estimates for the next years, HWKN will show a small growth in Earnings Per Share. The EPS will grow by 2.21% on average per year.
- HWKN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.76% yearly.
EPS Next Y-0.45%
EPS Next 2Y7.37%
EPS Next 3Y2.21%
EPS Next 5YN/A
Revenue Next Year13.69%
Revenue Next 2Y10.53%
Revenue Next 3Y7.76%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- HWKN is valuated quite expensively with a Price/Earnings ratio of 38.50.
- Compared to the rest of the industry, the Price/Earnings ratio of HWKN indicates a slightly more expensive valuation: HWKN is more expensive than 61.45% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of HWKN to the average of the S&P500 Index (27.21), we can say HWKN is valued slightly more expensively.
- HWKN is valuated quite expensively with a Price/Forward Earnings ratio of 32.82.
- Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than the industry average as 62.65% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HWKN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.5 | ||
| Fwd PE | 32.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HWKN is valued a bit more expensive than the industry average as 75.90% of the companies are valued more cheaply.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HWKN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.64 | ||
| EV/EBITDA | 20.94 |
4.3 Compensation for Growth
- The excellent profitability rating of HWKN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.55
EPS Next 2Y7.37%
EPS Next 3Y2.21%
5. Dividend
5.1 Amount
- HWKN has a yearly dividend return of 0.49%, which is pretty low.
- HWKN's Dividend Yield is slightly below the industry average, which is at 2.23.
- Compared to an average S&P500 Dividend Yield of 1.81, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.49% |
5.2 History
- The dividend of HWKN is nicely growing with an annual growth rate of 8.66%!
- HWKN has been paying a dividend for at least 10 years, so it has a reliable track record.
- HWKN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.66%
Div Incr Years20
Div Non Decr Years28
5.3 Sustainability
- HWKN pays out 18.33% of its income as dividend. This is a sustainable payout ratio.
- HWKN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.33%
EPS Next 2Y7.37%
EPS Next 3Y2.21%
HAWKINS INC / HWKN FAQ
What is the ChartMill fundamental rating of HAWKINS INC (HWKN) stock?
ChartMill assigns a fundamental rating of 6 / 10 to HWKN.
Can you provide the valuation status for HAWKINS INC?
ChartMill assigns a valuation rating of 1 / 10 to HAWKINS INC (HWKN). This can be considered as Overvalued.
What is the profitability of HWKN stock?
HAWKINS INC (HWKN) has a profitability rating of 8 / 10.
What are the PE and PB ratios of HAWKINS INC (HWKN) stock?
The Price/Earnings (PE) ratio for HAWKINS INC (HWKN) is 38.5 and the Price/Book (PB) ratio is 6.31.
How sustainable is the dividend of HAWKINS INC (HWKN) stock?
The dividend rating of HAWKINS INC (HWKN) is 5 / 10 and the dividend payout ratio is 18.33%.