HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock - Currency: USD
HWKN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 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.
Each year in the past 5 years HWKN has been profitable.
Each year in the past 5 years HWKN had a positive operating cash flow.
1.2 Ratios
HWKN's Return On Assets of 8.56% is amongst the best of the industry. HWKN outperforms 92.94% of its industry peers.
The Return On Equity of HWKN (17.47%) is better than 88.24% of its industry peers.
The Return On Invested Capital of HWKN (10.20%) is better than 88.24% of its industry peers.
HWKN had an Average Return On Invested Capital over the past 3 years of 13.29%. This is significantly above the industry average of 6.67%.
| 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 82.35% of the companies in the same industry.
HWKN's Profit Margin has improved in the last couple of years.
HWKN has a better Operating Margin (11.93%) than 65.88% of its industry peers.
In the last couple of years the Operating Margin of HWKN has grown nicely.
HWKN has a Gross Margin of 23.05%. This is comparable to the rest of the industry: HWKN outperforms 44.71% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HWKN is still creating some value.
HWKN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HWKN has less shares outstanding
The debt/assets ratio for HWKN is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.49 indicates that HWKN is not in any danger for bankruptcy at the moment.
HWKN has a better Altman-Z score (6.49) than 97.65% 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.
HWKN has a better Debt to FCF ratio (3.68) than 88.24% of its industry peers.
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 58.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 6.49 |
ROIC/WACC1.17
WACC8.75%
2.3 Liquidity
A Current Ratio of 2.31 indicates that HWKN has no problem at all paying its short term obligations.
HWKN's Current ratio of 2.31 is fine compared to the rest of the industry. HWKN outperforms 61.18% of its industry peers.
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 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.31 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
HWKN shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.18%.
The Earnings Per Share has been growing by 24.81% on average over the past years. This is a very strong growth
HWKN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.52%.
The Revenue has been growing by 12.52% on average over the past years. This is quite good.
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
HWKN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.74% yearly.
The Revenue is expected to grow by 8.01% on average over the next years. This is quite good.
EPS Next Y9.27%
EPS Next 2Y8.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.16%
Revenue Next 2Y8.01%
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.
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.
Based on the Price/Earnings ratio, HWKN is valued a bit more expensive than the industry average as 61.18% of the companies are valued more cheaply.
HWKN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.99.
HWKN is valuated quite expensively with a Price/Forward Earnings ratio of 36.28.
Based on the Price/Forward Earnings ratio, HWKN is valued a bit more expensive than 65.88% of the companies in the same industry.
HWKN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.79 | ||
| Fwd PE | 36.28 |
4.2 Price Multiples
74.12% of the companies in the same industry are cheaper than HWKN, based on the Enterprise Value to EBITDA ratio.
HWKN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.74 | ||
| EV/EBITDA | 23.48 |
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)4.62
PEG (5Y)1.72
EPS Next 2Y8.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, HWKN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.75, HWKN is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, HWKN's dividend is way lower than the S&P500 average.
| 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 paid a dividend for at least 10 years, which is 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 2Y8.74%
EPS Next 3YN/A
173.73
+3.16 (+1.85%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.9%
Inst Owner Change-0.23%
Ins Owners3.81%
Ins Owner Change3.33%
Market Cap3.62B
Analysts82.5
Price Target164.9 (-5.08%)
Short Float %3.72%
Short Ratio3.95
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)3.5%
Min EPS beat(2)2.92%
Max EPS beat(2)4.09%
EPS beat(4)2
Avg EPS beat(4)-1.4%
Min EPS beat(4)-8.8%
Max EPS beat(4)4.09%
EPS beat(8)5
Avg EPS beat(8)5.69%
EPS beat(12)9
Avg EPS beat(12)11.34%
EPS beat(16)12
Avg EPS beat(16)13.55%
Revenue beat(2)2
Avg Revenue beat(2)3.7%
Min Revenue beat(2)3.14%
Max Revenue beat(2)4.26%
Revenue beat(4)3
Avg Revenue beat(4)0.46%
Min Revenue beat(4)-6.7%
Max Revenue beat(4)4.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.74%
Revenue beat(12)8
Avg Revenue beat(12)-0.18%
Revenue beat(16)12
Avg Revenue beat(16)2.98%
PT rev (1m)0%
PT rev (3m)6.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.78%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.16%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 42.79 | ||
| Fwd PE | 36.28 | ||
| P/S | 3.58 | ||
| P/FCF | 44.74 | ||
| P/OCF | 28.99 | ||
| P/B | 7.48 | ||
| P/tB | 141.02 | ||
| EV/EBITDA | 23.48 |
EPS(TTM)4.06
EY2.34%
EPS(NY)4.79
Fwd EY2.76%
FCF(TTM)3.88
FCFY2.24%
OCF(TTM)5.99
OCFY3.45%
SpS48.51
BVpS23.23
TBVpS1.23
PEG (NY)4.62
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 | 6.49 |
F-Score6
WACC8.75%
ROIC/WACC1.17
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 Y9.27%
EPS Next 2Y8.74%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)9.52%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%14.61%
Revenue Next Year12.16%
Revenue Next 2Y8.01%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y8.41%
EBIT growth 3Y18.73%
EBIT growth 5Y23.37%
EBIT Next Year59.89%
EBIT Next 3YN/A
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%