HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - US4202611095 - Common Stock
167.33 USD
-2.49 (-1.47%)
167.33 USD
0 (0%)
Taking everything into account, HWKN scores 6 out of 10 in our fundamental rating. HWKN was compared to 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.
HWKN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HWKN has a better Return On Assets (8.56%) than 91.67% of its industry peers.
HWKN has a better Return On Equity (17.47%) than 86.90% of its industry peers.
The Return On Invested Capital of HWKN (10.20%) is better than 86.90% 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 6.43%.
| 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
HWKN has a Profit Margin of 8.37%. This is amongst the best in the industry. HWKN outperforms 80.95% of its industry peers.
HWKN's Profit Margin has improved in the last couple of years.
HWKN has a Operating Margin of 11.93%. This is in the better half of the industry: HWKN outperforms 65.48% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 23.05%, HWKN perfoms like the industry average, outperforming 42.86% 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 | 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
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 worse debt/assets ratio than last year.
2.2 Solvency
HWKN has an Altman-Z score of 6.48. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
HWKN has a better Altman-Z score (6.48) than 98.81% of its industry peers.
The Debt to FCF ratio of HWKN is 3.68, which is a good value as it means it would take HWKN, 3.68 years of fcf income to pay off 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 88.10% of the companies in the same industry.
A Debt/Equity ratio of 0.59 indicates that HWKN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.59, HWKN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 6.48 |
ROIC/WACC1.16
WACC8.78%
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.
With a decent Current ratio value of 2.31, HWKN is doing good in the industry, outperforming 63.10% of the companies in the same industry.
A Quick Ratio of 1.45 indicates that HWKN should not have too much problems paying its short term obligations.
The Quick ratio of HWKN (1.45) is better than 61.90% of its industry peers.
| 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.
Measured over the past years, HWKN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.81% on average per year.
HWKN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.52%.
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 9.55% on average per year.
HWKN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.05% yearly.
EPS Next Y9.06%
EPS Next 2Y12.53%
EPS Next 3Y9.55%
EPS Next 5YN/A
Revenue Next Year14.81%
Revenue Next 2Y10.71%
Revenue Next 3Y8.05%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 41.21 indicates a quite expensive valuation of HWKN.
HWKN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, HWKN is valued quite expensively.
The Price/Forward Earnings ratio is 32.63, which means the current valuation is very expensive for HWKN.
HWKN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. HWKN is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.72. HWKN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.21 | ||
| Fwd PE | 32.63 |
4.2 Price Multiples
HWKN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HWKN is more expensive than 75.00% of the companies in the same industry.
HWKN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.13 | ||
| EV/EBITDA | 23.4 |
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.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.55
PEG (5Y)1.66
EPS Next 2Y12.53%
EPS Next 3Y9.55%
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.45%, which is pretty low.
HWKN's Dividend Yield is slightly below the industry average, which is at 3.54.
With a Dividend Yield of 0.45, HWKN pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
HWKN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP17.76%
EPS Next 2Y12.53%
EPS Next 3Y9.55%
167.33
-2.49 (-1.47%)
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 Change3.42%
Market Cap3.49B
Analysts82.5
Price Target175.1 (4.64%)
Short Float %5.34%
Short Ratio5.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)15.73%
PT rev (3m)20.05%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)0.72%
EPS NY rev (1m)-0.19%
EPS NY rev (3m)-2.82%
Revenue NQ rev (1m)2.22%
Revenue NQ rev (3m)6.94%
Revenue NY rev (1m)2.37%
Revenue NY rev (3m)6.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.21 | ||
| Fwd PE | 32.63 | ||
| P/S | 3.45 | ||
| P/FCF | 43.13 | ||
| P/OCF | 27.95 | ||
| P/B | 7.21 | ||
| P/tB | 135.96 | ||
| EV/EBITDA | 23.4 |
EPS(TTM)4.06
EY2.43%
EPS(NY)5.13
Fwd EY3.07%
FCF(TTM)3.88
FCFY2.32%
OCF(TTM)5.99
OCFY3.58%
SpS48.46
BVpS23.21
TBVpS1.23
PEG (NY)4.55
PEG (5Y)1.66
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 | 6.48 |
F-Score6
WACC8.78%
ROIC/WACC1.16
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 3Y9.55%
EPS Next 5YN/A
Revenue 1Y (TTM)9.52%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%14.61%
Revenue Next Year14.81%
Revenue Next 2Y10.71%
Revenue Next 3Y8.05%
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%