HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to HWKN. HWKN was compared to 85 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
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.
HWKN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HWKN has a better Return On Assets (10.96%) than 97.65% of its industry peers.
The Return On Equity of HWKN (18.32%) is better than 88.24% of its industry peers.
The Return On Invested Capital of HWKN (13.33%) is better than 95.29% 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 6.84%.
The 3 year average ROIC (13.29%) for HWKN is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 18.32% | ||
| ROIC | 13.33% |
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
The Profit Margin of HWKN (8.66%) is better than 82.35% of its industry peers.
HWKN's Profit Margin has improved in the last couple of years.
HWKN has a Operating Margin of 12.23%. This is in the better half of the industry: HWKN outperforms 68.24% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.15%, HWKN is in line with its industry, outperforming 44.71% of the companies in the same industry.
In the last couple of years the Gross Margin of HWKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 8.66% | ||
| GM | 23.15% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HWKN is still creating some value.
Compared to 1 year ago, HWKN has less shares outstanding
HWKN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HWKN is higher compared to a year ago.
2.2 Solvency
HWKN has an Altman-Z score of 9.04. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
HWKN has a Altman-Z score of 9.04. This is amongst the best in the industry. HWKN outperforms 98.82% of its industry peers.
The Debt to FCF ratio of HWKN is 2.13, which is a good value as it means it would take HWKN, 2.13 years of fcf income to pay off all of its debts.
HWKN has a Debt to FCF ratio of 2.13. This is amongst the best in the industry. HWKN outperforms 88.24% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that HWKN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.30, HWKN is in the better half of the industry, outperforming 75.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 9.04 |
ROIC/WACC1.5
WACC8.86%
2.3 Liquidity
HWKN has a Current Ratio of 2.15. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
HWKN has a Current ratio (2.15) which is comparable to the rest of the industry.
HWKN has a Quick Ratio of 1.37. 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 (1.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
HWKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.81%, which is quite good.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 6.02% in the past year.
HWKN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.52% yearly.
EPS 1Y (TTM)12.81%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%18.18%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%10%
3.2 Future
The Earnings Per Share is expected to grow by 8.74% on average over the next years. This is quite good.
Based on estimates for the next years, HWKN will show a quite strong growth in Revenue. The Revenue will grow by 8.01% on average per year.
EPS Next Y9.27%
EPS Next 2Y8.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.16%
Revenue Next 2Y8.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 38.35 indicates a quite expensive valuation of HWKN.
HWKN's Price/Earnings ratio is a bit more expensive when compared to the industry. HWKN is more expensive than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of HWKN to the average of the S&P500 Index (27.30), we can say HWKN is valued slightly more expensively.
With a Price/Forward Earnings ratio of 35.09, HWKN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HWKN indicates a slightly more expensive valuation: HWKN is more expensive than 67.06% of the companies listed in the same industry.
HWKN is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 35.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HWKN indicates a slightly more expensive valuation: HWKN is more expensive than 68.24% of the companies listed in the same industry.
HWKN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.15 | ||
| EV/EBITDA | 21.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HWKN does not grow enough to justify the current Price/Earnings ratio.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.14
PEG (5Y)1.55
EPS Next 2Y8.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.47%, which is pretty low.
Compared to an average industry Dividend Yield of 3.57, HWKN is paying slightly less dividend.
With a Dividend Yield of 0.47, HWKN pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
5.2 History
On average, the dividend of HWKN grows each year by 8.66%, which is quite nice.
HWKN has paid a dividend for at least 10 years, which is a reliable track record.
HWKN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)8.66%
Div Incr Years20
Div Non Decr Years28
5.3 Sustainability
17.35% of the earnings are spent on dividend by HWKN. This is a low number and sustainable payout ratio.
The dividend of HWKN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP17.35%
EPS Next 2Y8.74%
EPS Next 3YN/A
155.3
-0.42 (-0.27%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.9%
Inst Owner Change-0.02%
Ins Owners3.81%
Ins Owner Change2.97%
Market Cap3.23B
Analysts82.5
Price Target151.3 (-2.58%)
Short Float %3.24%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.47% |
Yearly Dividend0.71
Dividend Growth(5Y)8.66%
DP17.35%
Div Incr Years20
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.36%
Min EPS beat(2)-8.8%
Max EPS beat(2)4.09%
EPS beat(4)2
Avg EPS beat(4)6.66%
Min EPS beat(4)-8.8%
Max EPS beat(4)35.13%
EPS beat(8)5
Avg EPS beat(8)15.25%
EPS beat(12)9
Avg EPS beat(12)16.46%
EPS beat(16)12
Avg EPS beat(16)14.07%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)1.16%
Max Revenue beat(2)4.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-6.7%
Max Revenue beat(4)4.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.91%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)2.74%
PT rev (1m)3.73%
PT rev (3m)16.8%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.35 | ||
| Fwd PE | 35.09 | ||
| P/S | 3.32 | ||
| P/FCF | 46.15 | ||
| P/OCF | 29.08 | ||
| P/B | 7.02 | ||
| P/tB | 18.48 | ||
| EV/EBITDA | 21.26 |
EPS(TTM)4.05
EY2.61%
EPS(NY)4.43
Fwd EY2.85%
FCF(TTM)3.37
FCFY2.17%
OCF(TTM)5.34
OCFY3.44%
SpS46.85
BVpS22.13
TBVpS8.4
PEG (NY)4.14
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 18.32% | ||
| ROCE | 17.98% | ||
| ROIC | 13.33% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 23.74% | ||
| OM | 12.23% | ||
| PM (TTM) | 8.66% | ||
| GM | 23.15% | ||
| FCFM | 7.18% |
ROA(3y)10.86%
ROA(5y)10.06%
ROE(3y)18.01%
ROE(5y)17.3%
ROIC(3y)13.29%
ROIC(5y)12.3%
ROICexc(3y)13.45%
ROICexc(5y)12.43%
ROICexgc(3y)21.93%
ROICexgc(5y)19.91%
ROCE(3y)17.93%
ROCE(5y)16.6%
ROICexcg growth 3Y11.08%
ROICexcg growth 5Y9.36%
ROICexc growth 3Y5.57%
ROICexc growth 5Y7%
OM growth 3Y9.98%
OM growth 5Y9.64%
PM growth 3Y9.19%
PM growth 5Y10.49%
GM growth 3Y6.96%
GM growth 5Y4.38%
F-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 102.87% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 20.6 | ||
| Cash Conversion | 69.82% | ||
| Profit Quality | 82.99% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 9.04 |
F-Score6
WACC8.86%
ROIC/WACC1.5
Cap/Depr(3y)135.07%
Cap/Depr(5y)123.02%
Cap/Sales(3y)4.58%
Cap/Sales(5y)4.18%
Profit Quality(3y)96.61%
Profit Quality(5y)74.75%
High Growth Momentum
Growth
EPS 1Y (TTM)12.81%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%18.18%
EPS Next Y9.27%
EPS Next 2Y8.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.02%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%10%
Revenue Next Year12.16%
Revenue Next 2Y8.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y14.53%
EBIT growth 3Y18.73%
EBIT growth 5Y23.37%
EBIT Next Year60.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.35%
FCF growth 3Y69.67%
FCF growth 5Y15.3%
OCF growth 1Y-30.35%
OCF growth 3Y37.39%
OCF growth 5Y13.53%