HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to HWKN. 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. With these ratings, HWKN could be worth investigating further 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.
HWKN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HWKN has a better Return On Assets (11.57%) than 97.59% of its industry peers.
Looking at the Return On Equity, with a value of 17.91%, HWKN belongs to the top of the industry, outperforming 85.54% of the companies in the same industry.
HWKN has a better Return On Invested Capital (13.56%) than 95.18% 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 6.65%.
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
HWKN has a Profit Margin of 8.60%. This is in the better half of the industry: HWKN outperforms 78.31% of its industry peers.
HWKN's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.04%, HWKN is in the better half of the industry, outperforming 66.27% of the companies in the same industry.
HWKN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 22.98%, HWKN perfoms like the industry average, outperforming 42.17% 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 | 12.04% | ||
| 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
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
The number of shares outstanding for HWKN has been reduced compared to 5 years ago.
HWKN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.26 indicates that HWKN is not in any danger for bankruptcy at the moment.
HWKN has a better Altman-Z score (8.26) than 98.80% 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 91.57% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that HWKN is not too dependend on debt financing.
HWKN has a better Debt to Equity ratio (0.23) than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 8.26 |
ROIC/WACC1.53
WACC8.87%
2.3 Liquidity
HWKN has a Current Ratio of 2.50. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of HWKN (2.50) is better than 63.86% 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.
The Quick ratio of HWKN (1.53) is better than 63.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 1.53 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.93% over the past year.
Measured over the past years, HWKN shows a very strong growth in Earnings Per Share. The EPS has been growing by 44.46% on average per year.
HWKN shows a small growth in Revenue. In the last year, the Revenue has grown by 3.02%.
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)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 a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.73% yearly.
Based on estimates for the next years, HWKN will show a small growth in Revenue. The Revenue will grow by 5.59% on average per year.
EPS Next Y13.49%
EPS Next 2Y9.96%
EPS Next 3Y7.73%
EPS Next 5YN/A
Revenue Next Year4.9%
Revenue Next 2Y5.59%
Revenue Next 3YN/A
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
The Price/Earnings ratio is 26.57, which means the current valuation is very expensive for HWKN.
The rest of the industry has a similar Price/Earnings ratio as HWKN.
HWKN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 24.05 indicates a rather expensive valuation of HWKN.
Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than the industry average as 61.45% 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 22.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 24.05 |
4.2 Price Multiples
63.86% of the companies in the same industry are cheaper than HWKN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HWKN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.24 | ||
| EV/EBITDA | 15.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of HWKN may justify a higher PE ratio.
PEG (NY)1.97
PEG (5Y)0.6
EPS Next 2Y9.96%
EPS Next 3Y7.73%
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.68%, which is pretty low.
HWKN's Dividend Yield is comparable with the industry average which is at 3.27.
Compared to an average S&P500 Dividend Yield of 2.29, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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
HWKN pays out 17.39% of its income as dividend. This is a sustainable payout ratio.
HWKN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP17.39%
EPS Next 2Y9.96%
EPS Next 3Y7.73%
104.41
-1.85 (-1.74%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change5.54%
Ins Owners3.6%
Ins Owner Change-0.03%
Market Cap2.19B
Analysts43.33
Price Target129.54 (24.07%)
Short Float %2.98%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
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)-1.63%
EPS NQ rev (1m)-9.53%
EPS NQ rev (3m)-13.46%
EPS NY rev (1m)-2.94%
EPS NY rev (3m)-2.94%
Revenue NQ rev (1m)-0.7%
Revenue NQ rev (3m)-5.53%
Revenue NY rev (1m)0.7%
Revenue NY rev (3m)0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.57 | ||
| Fwd PE | 24.05 | ||
| P/S | 2.3 | ||
| P/FCF | 27.24 | ||
| P/OCF | 17.89 | ||
| P/B | 4.78 | ||
| P/tB | 10.42 | ||
| EV/EBITDA | 15.23 |
EPS(TTM)3.93
EY3.76%
EPS(NY)4.34
Fwd EY4.16%
FCF(TTM)3.83
FCFY3.67%
OCF(TTM)5.84
OCFY5.59%
SpS45.49
BVpS21.83
TBVpS10.02
PEG (NY)1.97
PEG (5Y)0.6
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 | 8.26 |
F-Score8
WACC8.87%
ROIC/WACC1.53
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 Y13.49%
EPS Next 2Y9.96%
EPS Next 3Y7.73%
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 2Y5.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y15.29%
EBIT growth 3Y23.01%
EBIT growth 5Y23.1%
EBIT Next Year56.2%
EBIT Next 3YN/A
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%