HAWKINS INC (HWKN)
US4202611095 - Common Stock
Taking everything into account, HWKN scores 7 out of 10 in our fundamental rating. HWKN was compared to 83 industry peers in the Chemicals industry. HWKN scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
HWKN had positive earnings in the past year.
HWKN had a positive operating cash flow in the past year.
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's Return On Assets of 11.85% is amongst the best of the industry. HWKN outperforms 95.18% of its industry peers.
HWKN has a Return On Equity of 18.43%. This is amongst the best in the industry. HWKN outperforms 86.75% of its industry peers.
HWKN has a Return On Invested Capital of 13.82%. This is amongst the best in the industry. HWKN outperforms 92.77% of its industry peers.
HWKN had an Average Return On Invested Capital over the past 3 years of 12.54%. This is significantly above the industry average of 7.24%.
The 3 year average ROIC (12.54%) for HWKN is below the current ROIC(13.82%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | 18.43% | ||
| ROIC | 13.82% |
ROA(3y)10.23%
ROA(5y)9.33%
ROE(3y)17.57%
ROE(5y)16.07%
ROIC(3y)12.54%
ROIC(5y)11.45%
1.3 Margins
HWKN has a Profit Margin of 8.74%. This is in the better half of the industry: HWKN outperforms 79.52% of its industry peers.
In the last couple of years the Profit Margin of HWKN has grown nicely.
HWKN has a better Operating Margin (12.00%) than 67.47% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
The Gross Margin of HWKN (22.76%) 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 | 12% | ||
| PM (TTM) | 8.74% | ||
| GM | 22.76% |
OM growth 3Y6.52%
OM growth 5Y11.34%
PM growth 3Y6.08%
PM growth 5Y13.33%
GM growth 3Y0.52%
GM growth 5Y4.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HWKN is still creating some value.
HWKN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HWKN has less shares outstanding
The debt/assets ratio for HWKN has been reduced compared to a year ago.
2.2 Solvency
HWKN has an Altman-Z score of 9.24. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 9.24, HWKN belongs to the best of the industry, outperforming 98.80% of the companies in the same industry.
HWKN has a debt to FCF ratio of 1.27. This is a very positive value and a sign of high solvency as it would only need 1.27 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.27, HWKN belongs to the best of the industry, outperforming 93.98% of the companies in the same industry.
HWKN has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
HWKN has a Debt to Equity ratio of 0.21. This is in the better half of the industry: HWKN outperforms 78.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.24 |
ROIC/WACC1.54
WACC8.98%
2.3 Liquidity
HWKN has a Current Ratio of 2.27. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.27, HWKN perfoms like the industry average, outperforming 51.81% of the companies in the same industry.
HWKN has a Quick Ratio of 1.39. This is a normal value and indicates that HWKN is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HWKN (1.39) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.39 |
3. Growth
3.1 Past
HWKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.51%, which is quite good.
HWKN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 44.46% yearly.
The Revenue has decreased by -0.05% in the past year.
Measured over the past years, HWKN shows a quite strong growth in Revenue. The Revenue has been growing by 10.56% on average per year.
EPS 1Y (TTM)19.51%
EPS 3Y22.88%
EPS 5Y44.46%
EPS Q2Q%5.45%
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y15.48%
Revenue growth 5Y10.56%
Sales Q2Q%4.44%
3.2 Future
HWKN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.11% yearly.
Based on estimates for the next years, HWKN will show a small growth in Revenue. The Revenue will grow by 5.84% on average per year.
EPS Next Y16.93%
EPS Next 2Y10.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year4.17%
Revenue Next 2Y5.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 31.63, HWKN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of HWKN indicates a slightly more expensive valuation: HWKN is more expensive than 63.86% of the companies listed in the same industry.
HWKN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 28.49, HWKN can be considered very expensive at the moment.
HWKN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HWKN is more expensive than 69.88% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. HWKN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 28.49 |
4.2 Price Multiples
73.49% of the companies in the same industry are cheaper than HWKN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWKN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.78 | ||
| EV/EBITDA | 18.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)0.71
EPS Next 2Y10.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.60%, HWKN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.28, HWKN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.34, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
5.2 History
The dividend of HWKN has a limited annual growth rate of 2.41%.
HWKN has paid a dividend for at least 10 years, which is 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)2.41%
Div Incr Years20
Div Non Decr Years28
5.3 Sustainability
16.91% of the earnings are spent on dividend by HWKN. This is a low number and sustainable payout ratio.
HWKN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP16.91%
EPS Next 2Y10.11%
EPS Next 3YN/A
HAWKINS INC
NASDAQ:HWKN (12/20/2024, 8:17:25 PM)
After market: 123.98 0 (0%)123.98
+4.55 (+3.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners70.61%
Inst Owner Change-0.4%
Ins Owners3.61%
Ins Owner Change0.64%
Market Cap2.59B
Analysts43.33
Price Target122.91 (-0.86%)
Short Float %2.25%
Short Ratio3.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Dividend Growth(5Y)2.41%
DP16.91%
Div Incr Years20
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.67%
Min EPS beat(2)-3.79%
Max EPS beat(2)35.13%
EPS beat(4)2
Avg EPS beat(4)9.94%
Min EPS beat(4)-5.12%
Max EPS beat(4)35.13%
EPS beat(8)6
Avg EPS beat(8)17.22%
EPS beat(12)10
Avg EPS beat(12)19.6%
EPS beat(16)13
Avg EPS beat(16)19.52%
Revenue beat(2)0
Avg Revenue beat(2)-4.03%
Min Revenue beat(2)-6.7%
Max Revenue beat(2)-1.35%
Revenue beat(4)1
Avg Revenue beat(4)-3.78%
Min Revenue beat(4)-7.61%
Max Revenue beat(4)0.53%
Revenue beat(8)4
Avg Revenue beat(8)-1.51%
Revenue beat(12)8
Avg Revenue beat(12)3.09%
Revenue beat(16)11
Avg Revenue beat(16)2.98%
PT rev (1m)-1.63%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.63 | ||
| Fwd PE | 28.49 | ||
| P/S | 2.77 | ||
| P/FCF | 31.78 | ||
| P/OCF | 20.56 | ||
| P/B | 5.85 | ||
| P/tB | 12.47 | ||
| EV/EBITDA | 18.09 |
EPS(TTM)3.92
EY3.16%
EPS(NY)4.35
Fwd EY3.51%
FCF(TTM)3.9
FCFY3.15%
OCF(TTM)6.03
OCFY4.86%
SpS44.69
BVpS21.2
TBVpS9.94
PEG (NY)1.87
PEG (5Y)0.71
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | 18.43% | ||
| ROCE | 18.77% | ||
| ROIC | 13.82% | ||
| ROICexc | 13.99% | ||
| ROICexgc | 23.29% | ||
| OM | 12% | ||
| PM (TTM) | 8.74% | ||
| GM | 22.76% | ||
| FCFM | 8.73% |
ROA(3y)10.23%
ROA(5y)9.33%
ROE(3y)17.57%
ROE(5y)16.07%
ROIC(3y)12.54%
ROIC(5y)11.45%
ROICexc(3y)12.7%
ROICexc(5y)11.58%
ROICexgc(3y)19.66%
ROICexgc(5y)18.08%
ROCE(3y)17.03%
ROCE(5y)15.55%
ROICexcg growth 3Y12.72%
ROICexcg growth 5Y11.2%
ROICexc growth 3Y10.7%
ROICexc growth 5Y10.64%
OM growth 3Y6.52%
OM growth 5Y11.34%
PM growth 3Y6.08%
PM growth 5Y13.33%
GM growth 3Y0.52%
GM growth 5Y4.09%
F-Score6
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.27 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 121.8% | ||
| Cap/Sales | 4.76% | ||
| Interest Coverage | 20.1 | ||
| Cash Conversion | 84.82% | ||
| Profit Quality | 99.82% | ||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z | 9.24 |
F-Score6
WACC8.98%
ROIC/WACC1.54
Cap/Depr(3y)140.17%
Cap/Depr(5y)125.19%
Cap/Sales(3y)4.41%
Cap/Sales(5y)4.25%
Profit Quality(3y)78.22%
Profit Quality(5y)82.34%
High Growth Momentum
Growth
EPS 1Y (TTM)19.51%
EPS 3Y22.88%
EPS 5Y44.46%
EPS Q2Q%5.45%
EPS Next Y16.93%
EPS Next 2Y10.11%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y15.48%
Revenue growth 5Y10.56%
Sales Q2Q%4.44%
Revenue Next Year4.17%
Revenue Next 2Y5.84%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y16.4%
EBIT growth 3Y23.01%
EBIT growth 5Y23.1%
EBIT Next Year55.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y493.67%
FCF growth 3Y73.13%
FCF growth 5Y27.54%
OCF growth 1Y484.81%
OCF growth 3Y53.86%
OCF growth 5Y27.15%