HAWKINS INC (HWKN) Stock Fundamental Analysis
NASDAQ:HWKN - Nasdaq - US4202611095 - Common Stock - Currency: USD
Taking everything into account, HWKN scores 6 out of 10 in our fundamental rating. HWKN was compared to 85 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, HWKN could be worth investigating further 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 has a better Return On Assets (10.96%) than 97.65% of its industry peers.
HWKN has a better Return On Equity (18.32%) than 88.24% of its industry peers.
HWKN's Return On Invested Capital of 13.33% is amongst the best of the industry. HWKN outperforms 95.29% 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 6.84%.
The last Return On Invested Capital (13.33%) for HWKN is above the 3 year average (13.29%), which is a sign of increasing profitability.
| 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
The Profit Margin of HWKN (8.66%) is better than 82.35% of its industry peers.
In the last couple of years the Profit Margin of HWKN has grown nicely.
HWKN has a better Operating Margin (12.23%) than 68.24% of its industry peers.
HWKN's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 23.15%, HWKN is in line with its industry, outperforming 44.71% 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 | 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
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 has been reduced compared to 1 year ago.
Compared to 5 years ago, HWKN has less shares outstanding
Compared to 1 year ago, HWKN has a worse debt to assets ratio.
2.2 Solvency
HWKN has an Altman-Z score of 8.36. This indicates that HWKN is financially healthy and has little risk of bankruptcy at the moment.
HWKN's Altman-Z score of 8.36 is amongst the best of the industry. HWKN outperforms 98.82% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.13, HWKN belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
HWKN has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of HWKN (0.30) is better than 75.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 8.36 |
ROIC/WACC1.51
WACC8.84%
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 of 2.15. This is comparable to the rest of the industry: HWKN outperforms 56.47% of its industry peers.
A Quick Ratio of 1.37 indicates that HWKN should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.37, HWKN is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 1.37 |
3. Growth
3.1 Past
HWKN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.81%, which is quite good.
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.
The Revenue has been growing slightly by 6.02% in the past year.
The Revenue has been growing by 12.52% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 8.74% on average over the next years. This is quite good.
HWKN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.01% yearly.
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
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
Based on the Price/Earnings ratio of 34.28, the valuation of HWKN can be described as expensive.
63.53% of the companies in the same industry are cheaper than HWKN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.69. HWKN is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 31.37, 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 the industry average as 67.06% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of HWKN to the average of the S&P500 Index (21.29), we can say HWKN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.28 | ||
| Fwd PE | 31.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HWKN is valued a bit more expensive than the industry average as 68.24% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as HWKN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.25 | ||
| EV/EBITDA | 19.05 |
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)3.7
PEG (5Y)1.38
EPS Next 2Y8.74%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, 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 2.43, HWKN's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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.
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.
DP17.35%
EPS Next 2Y8.74%
EPS Next 3YN/A
138.82
-1.28 (-0.91%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners71.9%
Inst Owner Change1.87%
Ins Owners3.81%
Ins Owner Change2.97%
Market Cap2.89B
Analysts82.5
Price Target151.3 (8.99%)
Short Float %3.93%
Short Ratio6.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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)3.73%
PT rev (3m)16.8%
EPS NQ rev (1m)0.5%
EPS NQ rev (3m)2.59%
EPS NY rev (1m)-2.64%
EPS NY rev (3m)1.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.61%
Revenue NY rev (1m)3.68%
Revenue NY rev (3m)6.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.28 | ||
| Fwd PE | 31.37 | ||
| P/S | 2.96 | ||
| P/FCF | 41.25 | ||
| P/OCF | 25.99 | ||
| P/B | 6.27 | ||
| P/tB | 16.52 | ||
| EV/EBITDA | 19.05 |
EPS(TTM)4.05
EY2.92%
EPS(NY)4.43
Fwd EY3.19%
FCF(TTM)3.37
FCFY2.42%
OCF(TTM)5.34
OCFY3.85%
SpS46.85
BVpS22.13
TBVpS8.4
PEG (NY)3.7
PEG (5Y)1.38
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 | 8.36 |
F-Score6
WACC8.84%
ROIC/WACC1.51
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 Y9.27%
EPS Next 2Y8.74%
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 Year12.16%
Revenue Next 2Y8.01%
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%