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 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. These ratings would make HWKN suitable 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.
Each year in the past 5 years HWKN has been profitable.
HWKN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HWKN's Return On Assets of 10.96% is amongst the best of the industry. HWKN outperforms 97.65% of its industry peers.
HWKN's Return On Equity of 18.32% is amongst the best of the industry. HWKN outperforms 88.24% of its industry peers.
HWKN has a Return On Invested Capital of 13.33%. This is amongst the best in the industry. HWKN outperforms 94.12% 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 7.03%.
The 3 year average ROIC (13.29%) for HWKN is below the current ROIC(13.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 18.32% | ||
| ROIC | 13.33% |
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
Looking at the Profit Margin, with a value of 8.66%, HWKN belongs to the top of the industry, outperforming 83.53% of the companies in the same industry.
In the last couple of years the Profit Margin of HWKN has grown nicely.
HWKN has a better Operating Margin (12.23%) than 67.06% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
HWKN's Gross Margin of 23.15% is in line compared to the rest of the industry. HWKN outperforms 43.53% of its industry peers.
In the last couple of years the Gross Margin of HWKN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.23% | ||
| PM (TTM) | 8.66% | ||
| GM | 23.15% |
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
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.
Compared to 1 year ago, HWKN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.11 indicates that HWKN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.11, HWKN belongs to the top of the industry, outperforming 98.82% of the companies in the same industry.
HWKN has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as HWKN would need 2.13 years to pay back of all of its debts.
HWKN has a better Debt to FCF ratio (2.13) than 88.24% of its industry peers.
HWKN has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
HWKN's Debt to Equity ratio of 0.30 is fine compared to the rest of the industry. HWKN outperforms 74.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 8.11 |
ROIC/WACC1.49
WACC8.97%
2.3 Liquidity
HWKN has a Current Ratio of 2.15. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
HWKN has a Current ratio (2.15) which is comparable to the rest of the industry.
A Quick Ratio of 1.37 indicates that HWKN should not have too much problems paying its short term obligations.
HWKN's Quick ratio of 1.37 is in line compared to the rest of the industry. HWKN outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.81% over the past year.
HWKN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.81% yearly.
The Revenue has been growing slightly by 6.02% in the past 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)12.81%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%18.18%
Revenue 1Y (TTM)6.02%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%10%
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 9.09% yearly.
The Revenue is expected to grow by 5.95% on average over the next years.
EPS Next Y12.23%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.17%
Revenue Next 2Y5.95%
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
Based on the Price/Earnings ratio of 32.96, the valuation of HWKN can be described as expensive.
Based on the Price/Earnings ratio, HWKN is valued a bit more expensive than 62.35% of the companies in the same industry.
When comparing the Price/Earnings ratio of HWKN to the average of the S&P500 Index (26.25), we can say HWKN is valued slightly more expensively.
The Price/Forward Earnings ratio is 29.37, which means the current valuation is very expensive for HWKN.
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 is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.15, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 29.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWKN is valued a bit more expensive than 68.24% of the companies in the same industry.
HWKN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.67 | ||
| EV/EBITDA | 18.25 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.69
PEG (5Y)1.33
EPS Next 2Y9.09%
EPS Next 3YN/A
5. Dividend
5.1 Amount
HWKN has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 3.77, HWKN is paying slightly less dividend.
With a Dividend Yield of 0.57, HWKN pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
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 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 17.35% 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.
DP17.35%
EPS Next 2Y9.09%
EPS Next 3YN/A
133.49
+0.8 (+0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners72.73%
Inst Owner Change1.93%
Ins Owners3.6%
Ins Owner Change2.97%
Market Cap2.78B
Analysts82.5
Price Target145.86 (9.27%)
Short Float %3.95%
Short Ratio6.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend0.71
Dividend Growth(5Y)8.66%
DP17.35%
Div Incr Years20
Div Non Decr Years28
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.36%
Min EPS beat(2)-8.8%
Max EPS beat(2)4.09%
EPS beat(4)2
Avg EPS beat(4)6.66%
Min EPS beat(4)-8.8%
Max EPS beat(4)35.13%
EPS beat(8)5
Avg EPS beat(8)15.25%
EPS beat(12)9
Avg EPS beat(12)16.46%
EPS beat(16)12
Avg EPS beat(16)14.07%
Revenue beat(2)2
Avg Revenue beat(2)2.71%
Min Revenue beat(2)1.16%
Max Revenue beat(2)4.26%
Revenue beat(4)2
Avg Revenue beat(4)-0.66%
Min Revenue beat(4)-6.7%
Max Revenue beat(4)4.26%
Revenue beat(8)4
Avg Revenue beat(8)-1.91%
Revenue beat(12)8
Avg Revenue beat(12)0.82%
Revenue beat(16)11
Avg Revenue beat(16)2.74%
PT rev (1m)12.6%
PT rev (3m)12.6%
EPS NQ rev (1m)0.28%
EPS NQ rev (3m)2.08%
EPS NY rev (1m)1.52%
EPS NY rev (3m)4.72%
Revenue NQ rev (1m)4.68%
Revenue NQ rev (3m)5.61%
Revenue NY rev (1m)0.57%
Revenue NY rev (3m)2.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.96 | ||
| Fwd PE | 29.37 | ||
| P/S | 2.85 | ||
| P/FCF | 39.67 | ||
| P/OCF | 24.99 | ||
| P/B | 6.03 | ||
| P/tB | 15.89 | ||
| EV/EBITDA | 18.25 |
EPS(TTM)4.05
EY3.03%
EPS(NY)4.55
Fwd EY3.41%
FCF(TTM)3.37
FCFY2.52%
OCF(TTM)5.34
OCFY4%
SpS46.85
BVpS22.13
TBVpS8.4
PEG (NY)2.69
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.96% | ||
| ROE | 18.32% | ||
| ROCE | 17.98% | ||
| ROIC | 13.33% | ||
| ROICexc | 13.43% | ||
| ROICexgc | 23.74% | ||
| OM | 12.23% | ||
| PM (TTM) | 8.66% | ||
| GM | 23.15% | ||
| FCFM | 7.18% |
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 Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 102.87% | ||
| Cap/Sales | 4.22% | ||
| Interest Coverage | 20.6 | ||
| Cash Conversion | 69.82% | ||
| Profit Quality | 82.99% | ||
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.37 | ||
| Altman-Z | 8.11 |
F-Score6
WACC8.97%
ROIC/WACC1.49
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)12.81%
EPS 3Y18.4%
EPS 5Y24.81%
EPS Q2Q%18.18%
EPS Next Y12.23%
EPS Next 2Y9.09%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)6.02%
Revenue growth 3Y7.96%
Revenue growth 5Y12.52%
Sales Q2Q%10%
Revenue Next Year8.17%
Revenue Next 2Y5.95%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y14.53%
EBIT growth 3Y18.73%
EBIT growth 5Y23.37%
EBIT Next Year60.14%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-41.35%
FCF growth 3Y69.67%
FCF growth 5Y15.3%
OCF growth 1Y-30.35%
OCF growth 3Y37.39%
OCF growth 5Y13.53%