HAWKINS INC (HWKN)
US4202611095 - Common Stock
We assign a fundamental rating of 7 out of 10 to HWKN. HWKN was compared to 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 has a correct valuation and a medium growth rate. These ratings would make HWKN suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year HWKN was profitable.
HWKN had a positive operating cash flow in the past year.
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 has a Return On Assets of 11.35%. This is amongst the best in the industry. HWKN outperforms 92.94% of its industry peers.
The Return On Equity of HWKN (18.56%) is better than 84.71% of its industry peers.
HWKN has a Return On Invested Capital of 12.91%. This is amongst the best in the industry. HWKN outperforms 91.76% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HWKN is above the industry average of 7.47%.
The 3 year average ROIC (11.29%) for HWKN is below the current ROIC(12.91%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.35% | ||
| ROE | 18.56% | ||
| ROIC | 12.91% |
ROA(3y)9.3%
ROA(5y)8.31%
ROE(3y)16.54%
ROE(5y)14.6%
ROIC(3y)11.29%
ROIC(5y)10.27%
1.3 Margins
The Profit Margin of HWKN (7.91%) is better than 75.29% of its industry peers.
HWKN's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 10.76%, HWKN perfoms like the industry average, outperforming 56.47% of the companies in the same industry.
In the last couple of years the Operating Margin of HWKN has grown nicely.
HWKN has a Gross Margin of 19.89%. This is comparable to the rest of the industry: HWKN outperforms 41.18% of its industry peers.
HWKN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.76% | ||
| PM (TTM) | 7.91% | ||
| GM | 19.89% |
OM growth 3Y5.68%
OM growth 5Y10.97%
PM growth 3Y6.87%
PM growth 5YN/A
GM growth 3Y-1.86%
GM growth 5Y0.51%
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.
The number of shares outstanding for HWKN remains at a similar level compared to 1 year ago.
The number of shares outstanding for HWKN has been reduced compared to 5 years ago.
Compared to 1 year ago, HWKN has an improved debt to assets ratio.
2.2 Solvency
HWKN has an Altman-Z score of 6.70. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HWKN (6.70) is better than 96.47% of its industry peers.
HWKN has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
HWKN has a Debt to FCF ratio of 1.13. This is amongst the best in the industry. HWKN outperforms 92.94% of its industry peers.
HWKN has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.28, HWKN is doing good in the industry, outperforming 74.12% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 6.7 |
ROIC/WACC1.45
WACC8.89%
2.3 Liquidity
HWKN has a Current Ratio of 2.45. This indicates that HWKN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.45, HWKN is in the better half of the industry, outperforming 63.53% of the companies in the same industry.
A Quick Ratio of 1.58 indicates that HWKN should not have too much problems paying its short term obligations.
HWKN has a Quick ratio of 1.58. This is in the better half of the industry: HWKN outperforms 62.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 24.29% 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 29.07% on average per year.
Looking at the last year, HWKN shows a decrease in Revenue. The Revenue has decreased by -0.61% in the last year.
Measured over the past years, HWKN shows a quite strong growth in Revenue. The Revenue has been growing by 13.15% on average per year.
EPS 1Y (TTM)24.29%
EPS 3Y29.07%
EPS 5YN/A
EPS growth Q2Q39.22%
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y20.07%
Revenue growth 5Y13.15%
Revenue growth Q2Q-4.88%
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 14.47% on average per year.
The Revenue is expected to grow by 3.36% on average over the next years.
EPS Next Y29.31%
EPS Next 2Y14.47%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.84%
Revenue Next 2Y3.36%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
HWKN is valuated rather expensively with a Price/Earnings ratio of 21.78.
HWKN's Price/Earnings ratio is in line with the industry average.
HWKN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 24.92, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.29 indicates a rather expensive valuation of HWKN.
HWKN's Price/Forward Earnings ratio is in line with the industry average.
HWKN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.78 | ||
| Fwd PE | 20.29 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HWKN.
Based on the Price/Free Cash Flow ratio, HWKN is valued a bit cheaper than 71.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.95 | ||
| EV/EBITDA | 13.02 |
4.3 Compensation for Growth
HWKN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HWKN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HWKN's earnings are expected to grow with 14.47% in the coming years.
PEG (NY)0.74
PEG (5Y)N/A
EPS Next 2Y14.47%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.85%, HWKN is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.34, HWKN has a dividend in line with its industry peers.
With a Dividend Yield of 0.85, HWKN pays less dividend than the S&P500 average, which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
The dividend of HWKN has a limited annual growth rate of 5.90%.
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)5.9%
Div Incr Years12
Div Non Decr Years12
5.3 Sustainability
HWKN pays out 17.85% of its income as dividend. This is a sustainable payout ratio.
The dividend of HWKN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP17.85%
EPS Next 2Y14.47%
EPS Next 3YN/A
HAWKINS INC
NASDAQ:HWKN (4/26/2024, 7:00:02 PM)
After market: 75.78 0 (0%)75.78
+0.79 (+1.05%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.59B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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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 | 21.78 | ||
| Fwd PE | 20.29 | ||
| 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)0.74
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.35% | ||
| ROE | 18.56% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.76% | ||
| PM (TTM) | 7.91% | ||
| GM | 19.89% | ||
| 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 Turnover1.43
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.58 | ||
| 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)
Growth
EPS 1Y (TTM)24.29%
EPS 3Y29.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y29.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-0.61%
Revenue growth 3Y20.07%
Revenue growth 5Y
Revenue growth 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