HAWKINS INC (HWKN)
US4202611095 - Common Stock
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. Both the health and profitability get an excellent rating, making HWKN a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, HWKN is valued expensive at the moment. These ratings would make HWKN suitable 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.
HWKN had positive earnings in each of the past 5 years.
Each year in the past 5 years HWKN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.85%, HWKN belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
The Return On Equity of HWKN (18.43%) is better than 86.90% of its industry peers.
HWKN has a better Return On Invested Capital (13.82%) than 94.05% 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 6.50%.
The last Return On Invested Capital (13.82%) for HWKN is above the 3 year average (12.54%), which is a sign of increasing profitability.
| 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
With an excellent Profit Margin value of 8.74%, HWKN belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
HWKN's Profit Margin has improved in the last couple of years.
HWKN has a better Operating Margin (12.00%) than 69.05% of its industry peers.
In the last couple of years the Operating Margin of HWKN has grown nicely.
HWKN has a Gross Margin (22.76%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of HWKN has grown nicely.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HWKN is creating some value.
Compared to 1 year ago, HWKN has less shares outstanding
Compared to 5 years ago, HWKN has less shares outstanding
HWKN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 9.41 indicates that HWKN is not in any danger for bankruptcy at the moment.
HWKN has a better Altman-Z score (9.41) than 98.81% of its industry peers.
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.
The Debt to FCF ratio of HWKN (1.27) is better than 92.86% of its industry peers.
HWKN has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, HWKN is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 9.41 |
ROIC/WACC1.56
WACC8.83%
2.3 Liquidity
A Current Ratio of 2.27 indicates that HWKN has no problem at all paying its short term obligations.
HWKN has a Current ratio (2.27) which is in line with its industry peers.
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.
The Revenue has been growing by 10.56% on average over the past years. This is quite good.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
The Price/Earnings ratio is 32.66, which means the current valuation is very expensive for HWKN.
HWKN's Price/Earnings ratio is in line with the industry average.
HWKN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
Based on the Price/Forward Earnings ratio of 29.42, the valuation of HWKN can be described as expensive.
Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than the industry average as 69.05% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of HWKN to the average of the S&P500 Index (23.82), we can say HWKN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 29.42 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWKN is valued a bit more expensive than the industry average as 70.24% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWKN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.82 | ||
| EV/EBITDA | 18.54 |
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.
The excellent profitability rating of HWKN may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)0.73
EPS Next 2Y10.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, HWKN is not a good candidate for dividend investing.
HWKN's Dividend Yield is comparable with the industry average which is at 2.95.
With a Dividend Yield of 0.58, HWKN pays less dividend than the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of HWKN has a limited annual growth rate of 2.41%.
HWKN has been paying a dividend for at least 10 years, so it has a reliable track record.
HWKN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)2.41%
Div Incr Years19
Div Non Decr Years27
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 (11/21/2024, 8:00:01 PM)
After market: 128.03 0 (0%)128.03
+0.85 (+0.67%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.66 | ||
| Fwd PE | 29.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.93
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | 18.43% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12% | ||
| PM (TTM) | 8.74% | ||
| GM | 22.76% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.51%
EPS 3Y22.88%
EPS 5Y
EPS Q2Q%
EPS Next Y16.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.05%
Revenue growth 3Y15.48%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y