HAWKINS INC (HWKN) Stock Fundamental Analysis
USA - NASDAQ:HWKN - US4202611095 - Common Stock
173.71 USD
+0.42 (+0.24%)
173.71 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to HWKN. HWKN was compared to 83 industry peers in the Chemicals industry. HWKN gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, HWKN is valued expensive at the moment. 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.
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 8.56%, HWKN belongs to the top of the industry, outperforming 90.36% of the companies in the same industry.
HWKN has a Return On Equity of 17.47%. This is amongst the best in the industry. HWKN outperforms 86.75% of its industry peers.
HWKN has a Return On Invested Capital of 10.20%. This is amongst the best in the industry. HWKN outperforms 87.95% 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 6.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 17.47% | ||
| ROIC | 10.2% |
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
With an excellent Profit Margin value of 8.37%, HWKN belongs to the best of the industry, outperforming 80.72% of the companies in the same industry.
HWKN's Profit Margin has improved in the last couple of years.
The Operating Margin of HWKN (11.93%) is better than 65.06% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
HWKN has a Gross Margin (23.05%) which is comparable to the rest of the industry.
HWKN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.93% | ||
| PM (TTM) | 8.37% | ||
| GM | 23.05% |
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 6.56. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HWKN (6.56) is better than 97.59% of its industry peers.
HWKN has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as HWKN would need 3.68 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, HWKN belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
HWKN has a Debt/Equity ratio of 0.59. This is a neutral value indicating HWKN is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.59, HWKN is doing good in the industry, outperforming 60.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 6.56 |
ROIC/WACC1.15
WACC8.86%
2.3 Liquidity
HWKN has a Current Ratio of 2.31. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
HWKN's Current ratio of 2.31 is fine compared to the rest of the industry. HWKN outperforms 63.86% of its industry peers.
A Quick Ratio of 1.45 indicates that HWKN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.45, HWKN is in the better half of the industry, outperforming 62.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.18% over the past year.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
Looking at the last year, HWKN shows a quite strong growth in Revenue. The Revenue has grown by 9.52% in the last year.
Measured over the past years, HWKN shows a quite strong growth in Revenue. The Revenue has been growing by 12.52% on average per year.
EPS 1Y (TTM)5.18%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%0.72%
Revenue 1Y (TTM)9.52%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%14.61%
3.2 Future
Based on estimates for the next years, HWKN will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.34% on average per year.
Based on estimates for the next years, HWKN will show a small growth in Revenue. The Revenue will grow by 7.96% on average per year.
EPS Next Y9.06%
EPS Next 2Y12.53%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue Next Year15.02%
Revenue Next 2Y10.58%
Revenue Next 3Y7.96%
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.
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
With a Price/Earnings ratio of 42.79, 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 62.65% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.20, HWKN is valued quite expensively.
A Price/Forward Earnings ratio of 33.87 indicates a quite expensive valuation of HWKN.
Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than 67.47% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HWKN to the average of the S&P500 Index (22.70), we can say HWKN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.79 | ||
| Fwd PE | 33.87 |
4.2 Price Multiples
75.90% of the companies in the same industry are cheaper than HWKN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWKN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.77 | ||
| EV/EBITDA | 23.85 |
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)4.72
PEG (5Y)1.72
EPS Next 2Y12.53%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.43%, HWKN is not a good candidate for dividend investing.
HWKN's Dividend Yield is slightly below the industry average, which is at 3.43.
With a Dividend Yield of 0.43, HWKN pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of HWKN is nicely growing with an annual growth rate of 8.66%!
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)8.66%
Div Incr Years20
Div Non Decr Years28
5.3 Sustainability
HWKN pays out 17.76% of its income as dividend. This is a 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.
DP17.76%
EPS Next 2Y12.53%
EPS Next 3Y9.34%
173.71
+0.42 (+0.24%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners74.79%
Inst Owner Change-3.18%
Ins Owners3.95%
Ins Owner Change3.4%
Market Cap3.63B
Analysts80
Price Target175.1 (0.8%)
Short Float %5.89%
Short Ratio6.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.71
Dividend Growth(5Y)8.66%
DP17.76%
Div Incr Years20
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.76%
Min EPS beat(2)3.43%
Max EPS beat(2)4.09%
EPS beat(4)2
Avg EPS beat(4)-1.27%
Min EPS beat(4)-8.8%
Max EPS beat(4)4.09%
EPS beat(8)5
Avg EPS beat(8)5.75%
EPS beat(12)9
Avg EPS beat(12)11.38%
EPS beat(16)12
Avg EPS beat(16)13.58%
Revenue beat(2)2
Avg Revenue beat(2)4.13%
Min Revenue beat(2)4.01%
Max Revenue beat(2)4.26%
Revenue beat(4)3
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-6.7%
Max Revenue beat(4)4.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.63%
Revenue beat(12)8
Avg Revenue beat(12)-0.11%
Revenue beat(16)12
Avg Revenue beat(16)3.03%
PT rev (1m)6.19%
PT rev (3m)15.73%
EPS NQ rev (1m)-3.91%
EPS NQ rev (3m)-1.42%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)2.55%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.79 | ||
| Fwd PE | 33.87 | ||
| P/S | 3.58 | ||
| P/FCF | 44.77 | ||
| P/OCF | 29.02 | ||
| P/B | 7.49 | ||
| P/tB | 141.14 | ||
| EV/EBITDA | 23.85 |
EPS(TTM)4.06
EY2.34%
EPS(NY)5.13
Fwd EY2.95%
FCF(TTM)3.88
FCFY2.23%
OCF(TTM)5.99
OCFY3.45%
SpS48.46
BVpS23.21
TBVpS1.23
PEG (NY)4.72
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.56% | ||
| ROE | 17.47% | ||
| ROCE | 13.76% | ||
| ROIC | 10.2% | ||
| ROICexc | 10.37% | ||
| ROICexgc | 22.15% | ||
| OM | 11.93% | ||
| PM (TTM) | 8.37% | ||
| GM | 23.05% | ||
| FCFM | 8.01% |
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 Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.76 | ||
| Cap/Depr | 102.52% | ||
| Cap/Sales | 4.35% | ||
| Interest Coverage | 15.63 | ||
| Cash Conversion | 76.39% | ||
| Profit Quality | 95.71% | ||
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z | 6.56 |
F-Score6
WACC8.86%
ROIC/WACC1.15
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)5.18%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%0.72%
EPS Next Y9.06%
EPS Next 2Y12.53%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue 1Y (TTM)9.52%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%14.61%
Revenue Next Year15.02%
Revenue Next 2Y10.58%
Revenue Next 3Y7.96%
Revenue Next 5YN/A
EBIT growth 1Y8.41%
EBIT growth 3Y18.73%
EBIT growth 5Y23.37%
EBIT Next Year59.89%
EBIT Next 3Y19.13%
EBIT Next 5YN/A
FCF growth 1Y5.04%
FCF growth 3Y69.67%
FCF growth 5Y15.3%
OCF growth 1Y2.74%
OCF growth 3Y37.39%
OCF growth 5Y13.53%