HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock - Currency: USD
Taking everything into account, HWKN scores 7 out of 10 in our fundamental rating. HWKN was compared to 85 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. 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.
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 has a Return On Assets of 11.57%. This is amongst the best in the industry. HWKN outperforms 98.82% of its industry peers.
HWKN's Return On Equity of 17.91% is amongst the best of the industry. HWKN outperforms 88.24% of its industry peers.
HWKN's Return On Invested Capital of 13.56% is amongst the best of the industry. HWKN outperforms 95.29% 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 7.05%.
The 3 year average ROIC (12.54%) for HWKN is below the current ROIC(13.56%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.91% | ||
| ROIC | 13.56% |
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 8.60%, HWKN belongs to the best of the industry, outperforming 84.71% of the companies in the same industry.
In the last couple of years the Profit Margin of HWKN has grown nicely.
HWKN has a Operating Margin of 12.04%. This is in the better half of the industry: HWKN outperforms 67.06% of its industry peers.
In the last couple of years the Operating Margin of HWKN has grown nicely.
HWKN's Gross Margin of 22.98% is in line compared to the rest of the industry. HWKN outperforms 45.88% of its industry peers.
In the last couple of years the Gross Margin of HWKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.04% | ||
| PM (TTM) | 8.6% | ||
| GM | 22.98% |
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
HWKN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HWKN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HWKN has less shares outstanding
HWKN has a better debt/assets ratio than last year.
2.2 Solvency
HWKN has an Altman-Z score of 8.95. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
HWKN's Altman-Z score of 8.95 is amongst the best of the industry. HWKN outperforms 98.82% of its industry peers.
HWKN has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.42, HWKN belongs to the best of the industry, outperforming 92.94% of the companies in the same industry.
HWKN has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
HWKN has a better Debt to Equity ratio (0.23) than 78.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 8.95 |
ROIC/WACC1.55
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.50 indicates that HWKN has no problem at all paying its short term obligations.
The Current ratio of HWKN (2.50) is better than 72.94% of its industry peers.
HWKN has a Quick Ratio of 1.53. This is a normal value and indicates that HWKN is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.53, HWKN is doing good in the industry, outperforming 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
HWKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.93%, which is quite good.
The Earnings Per Share has been growing by 44.46% on average over the past years. This is a very strong growth
Looking at the last year, HWKN shows a small growth in Revenue. The Revenue has grown by 3.02% in the last year.
The Revenue has been growing by 10.56% on average over the past years. This is quite good.
EPS 1Y (TTM)12.93%
EPS 3Y22.88%
EPS 5Y44.46%
EPS Q2Q%1.41%
Revenue 1Y (TTM)3.02%
Revenue growth 3Y15.48%
Revenue growth 5Y10.56%
Sales Q2Q%8.49%
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 8.74% yearly.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y13.65%
EPS Next 2Y11.68%
EPS Next 3Y8.74%
EPS Next 5YN/A
Revenue Next Year4.9%
Revenue Next 2Y5.34%
Revenue Next 3Y5.39%
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
With a Price/Earnings ratio of 30.52, 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 61.18% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.63. HWKN is around the same levels.
With a Price/Forward Earnings ratio of 26.79, 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 60.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.85. HWKN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWKN is valued a bit more expensive than the industry average as 69.41% of the companies are valued more cheaply.
HWKN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.29 | ||
| EV/EBITDA | 17.1 |
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)2.24
PEG (5Y)0.69
EPS Next 2Y11.68%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, HWKN is not a good candidate for dividend investing.
HWKN's Dividend Yield is comparable with the industry average which is at 3.98.
Compared to an average S&P500 Dividend Yield of 2.51, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 Years20
Div Non Decr Years28
5.3 Sustainability
17.39% of the earnings are spent on dividend by HWKN. This is a low number and sustainable payout ratio.
The dividend of HWKN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.39%
EPS Next 2Y11.68%
EPS Next 3Y8.74%
119.93
-1.7 (-1.4%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change1.01%
Ins Owners3.6%
Ins Owner Change-2.84%
Market Cap2.51B
Analysts43.33
Price Target129.54 (8.01%)
Short Float %3.37%
Short Ratio4.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.64
Dividend Growth(5Y)2.41%
DP17.39%
Div Incr Years20
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.29%
Min EPS beat(2)-8.8%
Max EPS beat(2)-3.79%
EPS beat(4)1
Avg EPS beat(4)4.35%
Min EPS beat(4)-8.8%
Max EPS beat(4)35.13%
EPS beat(8)5
Avg EPS beat(8)15.99%
EPS beat(12)9
Avg EPS beat(12)17.37%
EPS beat(16)12
Avg EPS beat(16)17.78%
Revenue beat(2)1
Avg Revenue beat(2)-2.77%
Min Revenue beat(2)-6.7%
Max Revenue beat(2)1.16%
Revenue beat(4)2
Avg Revenue beat(4)-1.59%
Min Revenue beat(4)-6.7%
Max Revenue beat(4)1.16%
Revenue beat(8)4
Avg Revenue beat(8)-1.91%
Revenue beat(12)8
Avg Revenue beat(12)1.78%
Revenue beat(16)11
Avg Revenue beat(16)2.87%
PT rev (1m)0%
PT rev (3m)5.39%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-8.51%
EPS NY rev (1m)0.14%
EPS NY rev (3m)-2.81%
Revenue NQ rev (1m)1.18%
Revenue NQ rev (3m)0.47%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.52 | ||
| Fwd PE | 26.79 | ||
| P/S | 2.64 | ||
| P/FCF | 31.29 | ||
| P/OCF | 20.55 | ||
| P/B | 5.49 | ||
| P/tB | 11.97 | ||
| EV/EBITDA | 17.1 |
EPS(TTM)3.93
EY3.28%
EPS(NY)4.48
Fwd EY3.73%
FCF(TTM)3.83
FCFY3.2%
OCF(TTM)5.84
OCFY4.87%
SpS45.49
BVpS21.83
TBVpS10.02
PEG (NY)2.24
PEG (5Y)0.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.57% | ||
| ROE | 17.91% | ||
| ROCE | 18.41% | ||
| ROIC | 13.56% | ||
| ROICexc | 13.74% | ||
| ROICexgc | 22.98% | ||
| OM | 12.04% | ||
| PM (TTM) | 8.6% | ||
| GM | 22.98% | ||
| FCFM | 8.43% |
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-Score8
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.68 | ||
| Cap/Depr | 109.37% | ||
| Cap/Sales | 4.4% | ||
| Interest Coverage | 20.44 | ||
| Cash Conversion | 79.83% | ||
| Profit Quality | 98.02% | ||
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.53 | ||
| Altman-Z | 8.95 |
F-Score8
WACC8.75%
ROIC/WACC1.55
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)12.93%
EPS 3Y22.88%
EPS 5Y44.46%
EPS Q2Q%1.41%
EPS Next Y13.65%
EPS Next 2Y11.68%
EPS Next 3Y8.74%
EPS Next 5YN/A
Revenue 1Y (TTM)3.02%
Revenue growth 3Y15.48%
Revenue growth 5Y10.56%
Sales Q2Q%8.49%
Revenue Next Year4.9%
Revenue Next 2Y5.34%
Revenue Next 3Y5.39%
Revenue Next 5YN/A
EBIT growth 1Y15.29%
EBIT growth 3Y23.01%
EBIT growth 5Y23.1%
EBIT Next Year53.78%
EBIT Next 3Y20.13%
EBIT Next 5YN/A
FCF growth 1Y2160%
FCF growth 3Y73.13%
FCF growth 5Y27.54%
OCF growth 1Y150.96%
OCF growth 3Y53.86%
OCF growth 5Y27.15%