| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 0/6 |
| Past Performance | 5/6 |
| Financial Health | 6/6 |
| Dividends | 4/6 |
HWKN Stock Overview
Hawkins, Inc. blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationally.
Rewards
Risk Analysis
No risks detected for HWKN from our risk checks.
Hawkins Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$37.00 |
| 52 Week High | US$40.97 |
| 52 Week Low | US$24.55 |
| Beta | 0.89 |
| 1 Month Change | -5.44% |
| 3 Month Change | -2.76% |
| 1 Year Change | 35.78% |
| 3 Year Change | 79.13% |
| 5 Year Change | 37.42% |
| Change since IPO | 2,311.33% |
Recent News & Updates
Hawkins (NASDAQ:HWKN) Shareholders Will Want The ROCE Trajectory To Continue
What are the early trends we should look for to identify a stock that could multiply in value over the long term? One...
Still Avoiding Hawkins
Although the company has had an excellent year so far, I think there's risk from a slowdown and from the mounting debt levels. In spite of these risks, the shares are hardly expensive. I earlier made some money on short puts, and will take this opportunity to pound the drum about the power of these instruments to enhance returns and reduce risk.
Shareholder Returns
| HWKN | US Chemicals | US Market | |
|---|---|---|---|
| 7D | -6.1% | -6.0% | -6.1% |
| 1Y | 35.8% | 9.8% | 4.2% |
Return vs Industry: HWKN exceeded the US Chemicals industry which returned 9.8% over the past year.
Return vs Market: HWKN exceeded the US Market which returned 4.2% over the past year.
Price Volatility
| HWKN volatility | |
|---|---|
| HWKN Average Weekly Movement | 4.3% |
| Chemicals Industry Average Movement | 5.7% |
| Market Average Movement | 6.7% |
| 10% most volatile stocks in US Market | 15.5% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: HWKN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HWKN's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1938 | 742 | Patrick Hawkins | https://www.hawkinsinc.com |
Hawkins, Inc. blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationally. It operates through three segments: Industrial, Water Treatment, and Health and Nutrition. The Industrial segment offers industrial chemicals, products, and services to agriculture, chemical processing, electronics, energy, food, pharmaceutical, and plating industries.
Hawkins Fundamentals Summary
| HWKN fundamental statistics | |
|---|---|
| Market Cap | US$781.17m |
| Earnings (TTM) | US$47.76m |
| Revenue (TTM) | US$670.42m |
16.4x
P/E Ratio1.2x
P/S RatioIs HWKN overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| HWKN income statement (TTM) | |
|---|---|
| Revenue | US$670.42m |
| Cost of Revenue | US$534.17m |
| Gross Profit | US$136.25m |
| Expenses | US$88.49m |
| Earnings | US$47.76m |
Last Reported Earnings
Sep 26, 2021
Next Earnings Date
Feb 02, 2022
| Earnings per share (EPS) | 2.26 |
| Gross Margin | 20.32% |
| Net Profit Margin | 7.12% |
| Debt/Equity Ratio | 29.5% |
How did HWKN perform over the long term?
See historical performance and comparisonDividends
1.4%
Current Dividend Yield22%
Payout RatioValuation
Is Hawkins undervalued compared to its fair value and its price relative to the market?
33.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HWKN ($37) is trading below our estimate of fair value ($55.4)
Significantly Below Fair Value: HWKN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HWKN is good value based on its PE Ratio (16.4x) compared to the US Chemicals industry average (20.3x).
PE vs Market: HWKN is good value based on its PE Ratio (16.4x) compared to the US market (16.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate HWKN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: HWKN is overvalued based on its PB Ratio (2.7x) compared to the US Chemicals industry average (2.4x).
Future Growth
How is Hawkins forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
10.0%
Forecasted Materials industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Hawkins has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Past Performance
How has Hawkins performed over the past 5 years?
23.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HWKN has high quality earnings.
Growing Profit Margin: HWKN's current net profit margins (7.1%) are higher than last year (6.1%).
Past Earnings Growth Analysis
Earnings Trend: HWKN's earnings have grown significantly by 23.6% per year over the past 5 years.
Accelerating Growth: HWKN's earnings growth over the past year (43.6%) exceeds its 5-year average (23.6% per year).
Earnings vs Industry: HWKN earnings growth over the past year (43.6%) exceeded the Chemicals industry 17.5%.
Return on Equity
High ROE: HWKN's Return on Equity (16.8%) is considered low.
Financial Health
How is Hawkins's financial position?
Financial Position Analysis
Short Term Liabilities: HWKN's short term assets ($169.7M) exceed its short term liabilities ($71.5M).
Long Term Liabilities: HWKN's short term assets ($169.7M) exceed its long term liabilities ($121.9M).
Debt to Equity History and Analysis
Debt Level: HWKN's net debt to equity ratio (27.1%) is considered satisfactory.
Reducing Debt: HWKN's debt to equity ratio has reduced from 53.8% to 29.5% over the past 5 years.
Debt Coverage: HWKN's debt is well covered by operating cash flow (76.1%).
Interest Coverage: HWKN's interest payments on its debt are well covered by EBIT (45.6x coverage).
Balance Sheet
Dividend
What is Hawkins's current dividend yield, its reliability and sustainability?
1.41%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HWKN's dividend (1.41%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: HWKN's dividend (1.41%) is low compared to the top 25% of dividend payers in the US market (3.6%).
Stability and Growth of Payments
Stable Dividend: HWKN's dividends per share have been stable in the past 10 years.
Growing Dividend: HWKN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (21.6%), HWKN's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.8yrs
Average management tenure
CEO
Patrick Hawkins (50 yo)
11.83yrs
Tenure
US$2,157,581
Compensation
Mr. Patrick H. Hawkins has been the Chief Executive Officer and President of Hawkins, Inc. since March 11, 2011 and March 29, 2010 respectively. Mr. Hawkins served as Business Director - Food and Pharmaceu...
CEO Compensation Analysis
Compensation vs Market: Patrick's total compensation ($USD2.16M) is about average for companies of similar size in the US market ($USD2.39M).
Compensation vs Earnings: Patrick's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HWKN's management team is seasoned and experienced (6.8 years average tenure).
Board Members
Experienced Board: HWKN's board of directors are seasoned and experienced ( 10 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Hawkins, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: Hawkins, Inc.
- Ticker: HWKN
- Exchange: NasdaqGS
- Founded: 1938
- Industry: Commodity Chemicals
- Sector: Materials
- Implied Market Cap: US$781.169m
- Shares outstanding: 21.11m
- Website: https://www.hawkinsinc.com
Number of Employees
Location
- Hawkins, Inc.
- 2381 Rosegate
- Roseville
- Minnesota
- 55113
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 23:13 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/26 |
| Annual Earnings | 2021/03/28 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.