HAWKINS INC (HWKN)
US4202611095 - Common Stock
Overall HWKN gets a fundamental rating of 7 out of 10. We evaluated HWKN against 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. 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
HWKN had positive earnings in the past year.
In the past year HWKN had a positive cash flow from operations.
HWKN had positive earnings in each of the past 5 years.
In the past 5 years HWKN always reported a positive cash flow from operatings.
1.2 Ratios
HWKN's Return On Assets of 11.50% is amongst the best of the industry. HWKN outperforms 96.43% of its industry peers.
HWKN has a better Return On Equity (19.18%) than 89.29% of its industry peers.
With an excellent Return On Invested Capital value of 13.56%, HWKN belongs to the best of the industry, outperforming 94.05% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for HWKN is significantly above the industry average of 6.35%.
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 | 11.5% | ||
| ROE | 19.18% | ||
| 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 better Profit Margin (8.75%) than 82.14% of its industry peers.
In the last couple of years the Profit Margin of HWKN has grown nicely.
The Operating Margin of HWKN (12.05%) is better than 67.86% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
The Gross Margin of HWKN (22.33%) 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 | 12.05% | ||
| PM (TTM) | 8.75% | ||
| GM | 22.33% |
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.
The number of shares outstanding for HWKN has been reduced compared to 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
An Altman-Z score of 8.64 indicates that HWKN is not in any danger for bankruptcy at the moment.
HWKN has a Altman-Z score of 8.64. This is amongst the best in the industry. HWKN outperforms 98.81% of its industry peers.
The Debt to FCF ratio of HWKN is 1.35, which is an excellent value as it means it would take HWKN, only 1.35 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.35, HWKN belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
HWKN has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.29, HWKN is doing good in the industry, outperforming 76.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.35 | ||
| Altman-Z | 8.64 |
ROIC/WACC1.59
WACC8.52%
2.3 Liquidity
HWKN has a Current Ratio of 2.27. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.27, HWKN perfoms like the industry average, outperforming 51.19% of the companies in the same industry.
HWKN has a Quick Ratio of 1.44. 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 (1.44) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.97% over the past year.
The Earnings Per Share has been growing by 44.46% on average over the past years. This is a very strong growth
HWKN shows a decrease in Revenue. In the last year, the revenue decreased by -1.67%.
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)26.97%
EPS 3Y22.88%
EPS 5Y44.46%
EPS Q2Q%24.11%
Revenue 1Y (TTM)-1.67%
Revenue growth 3Y15.48%
Revenue growth 5Y10.56%
Sales Q2Q%1.9%
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 10.74% yearly.
The Revenue is expected to grow by 7.90% on average over the next years.
EPS Next Y17.67%
EPS Next 2Y10.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.17%
Revenue Next 2Y7.9%
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
Based on the Price/Earnings ratio of 33.67, the valuation of HWKN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of HWKN is on the same level as its industry peers.
HWKN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 31.73.
HWKN is valuated quite expensively with a Price/Forward Earnings ratio of 29.52.
Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than 70.24% of the companies in the same industry.
HWKN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 29.52 |
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 69.05% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWKN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.36 | ||
| EV/EBITDA | 19.63 |
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)1.91
PEG (5Y)0.76
EPS Next 2Y10.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.56%, which is pretty low.
HWKN's Dividend Yield is comparable with the industry average which is at 2.76.
Compared to an average S&P500 Dividend Yield of 2.22, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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
HWKN pays out 16.63% 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.
DP16.63%
EPS Next 2Y10.74%
EPS Next 3YN/A
HAWKINS INC
NASDAQ:HWKN (10/14/2024, 8:00:02 PM)
After market: 129.97 0 (0%)129.97
-0.61 (-0.47%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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Revenue beat(2)
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Revenue beat(16)
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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 | 33.67 | ||
| Fwd PE | 29.52 | ||
| 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)1.91
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.5% | ||
| ROE | 19.18% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.05% | ||
| PM (TTM) | 8.75% | ||
| GM | 22.33% | ||
| 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 Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.27 | ||
| Quick Ratio | 1.44 | ||
| 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)26.97%
EPS 3Y22.88%
EPS 5Y
EPS Q2Q%
EPS Next Y17.67%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-1.67%
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