HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock
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 gets an excellent profitability rating and is at the same time showing great financial health properties. HWKN is quite expensive at the moment. 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.
HWKN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 11.85%, HWKN belongs to the best of the industry, outperforming 97.59% of the companies in the same industry.
The Return On Equity of HWKN (18.43%) is better than 87.95% of its industry peers.
The Return On Invested Capital of HWKN (13.82%) is better than 95.18% 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 6.57%.
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
HWKN has a better Profit Margin (8.74%) than 78.31% of its industry peers.
HWKN's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 12.00%, HWKN is doing good in the industry, outperforming 67.47% of the companies in the same industry.
In the last couple of years the Operating Margin of HWKN has grown nicely.
HWKN's Gross Margin of 22.76% is in line compared to the rest of the industry. HWKN outperforms 42.17% of its industry peers.
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.
Compared to 1 year ago, HWKN has less shares outstanding
The number of shares outstanding for HWKN has been reduced compared to 5 years ago.
Compared to 1 year ago, HWKN has an improved debt to assets ratio.
2.2 Solvency
HWKN has an Altman-Z score of 8.75. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HWKN (8.75) is better than 98.80% 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.
HWKN has a better Debt to FCF ratio (1.27) than 92.77% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that HWKN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.21, HWKN is in the better half of the industry, outperforming 77.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.27 | ||
| Altman-Z | 8.75 |
ROIC/WACC1.54
WACC9%
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 of 2.27. This is comparable to the rest of the industry: HWKN outperforms 54.22% of 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.
HWKN has a Quick ratio (1.39) which 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
The Earnings Per Share has grown by an nice 19.51% over the past year.
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.
HWKN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.56% yearly.
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
HWKN is valuated quite expensively with a Price/Earnings ratio of 29.56.
HWKN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, HWKN is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.63, 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 63.86% of the companies are valued more cheaply.
HWKN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 26.63 |
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 69.88% of the companies listed in the same industry.
HWKN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.71 | ||
| EV/EBITDA | 16.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.75
PEG (5Y)0.66
EPS Next 2Y10.11%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.64%, which is pretty low.
Compared to an average industry Dividend Yield of 3.26, HWKN is paying slightly less dividend.
With a Dividend Yield of 0.64, HWKN pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
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 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 (1/21/2025, 8:06:22 PM)
After market: 115.89 0 (0%)115.89
+1.57 (+1.37%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners70.61%
Inst Owner Change0.09%
Ins Owners3.61%
Ins Owner Change0.68%
Market Cap2.42B
Analysts43.33
Price Target122.91 (6.06%)
Short Float %2.41%
Short Ratio3.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend0.64
Dividend Growth(5Y)2.41%
DP16.91%
Div Incr Years20
Div Non Decr Years28
Ex-DateN/A
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)0%
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 | 29.56 | ||
| Fwd PE | 26.63 | ||
| P/S | 2.59 | ||
| P/FCF | 29.71 | ||
| P/OCF | 19.22 | ||
| P/B | 5.47 | ||
| P/tB | 11.65 | ||
| EV/EBITDA | 16.73 |
EPS(TTM)3.92
EY3.38%
EPS(NY)4.35
Fwd EY3.76%
FCF(TTM)3.9
FCFY3.37%
OCF(TTM)6.03
OCFY5.2%
SpS44.69
BVpS21.2
TBVpS9.94
PEG (NY)1.75
PEG (5Y)0.66
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 | 8.75 |
F-Score6
WACC9%
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%