NasdaqGS:HWKN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Hawkins, Inc. blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationally.


Snowflake Analysis

Excellent balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Hawkins's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HWKN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.07%

HWKN

0.5%

US Chemicals

2.3%

US Market


1 Year Return

2.3%

HWKN

-4.5%

US Chemicals

6.7%

US Market

Return vs Industry: HWKN exceeded the US Chemicals industry which returned -4.5% over the past year.

Return vs Market: HWKN underperformed the US Market which returned 6.7% over the past year.


Shareholder returns

HWKNIndustryMarket
7 Day-0.07%0.5%2.3%
30 Day12.6%4.4%6.0%
90 Day32.8%17.8%18.9%
1 Year4.5%2.3%-2.3%-4.5%9.0%6.7%
3 Year0.2%-6.4%14.0%-7.4%36.6%27.7%
5 Year27.8%14.5%37.0%6.2%64.2%46.1%

Price Volatility Vs. Market

How volatile is Hawkins's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Hawkins undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWKN ($44.02) is trading below our estimate of fair value ($111.8)

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 (20.7x).

PE vs Market: HWKN is poor value based on its PE Ratio (16.4x) compared to the US market (16.2x).


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's PB Ratio (2x) is in line with the US Chemicals industry average.


Next Steps

Future Growth

How is Hawkins forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

22.4%

Forecasted Materials industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if HWKN's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if HWKN's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if HWKN's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if HWKN's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HWKN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Hawkins performed over the past 5 years?

-2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HWKN has high quality earnings.

Growing Profit Margin: HWKN's current net profit margins (5.3%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: HWKN's earnings have declined by -2.7% per year over the past 5 years.

Accelerating Growth: HWKN's earnings growth over the past year (18.3%) exceeds its 5-year average (-2.7% per year).

Earnings vs Industry: HWKN earnings growth over the past year (18.3%) exceeded the Chemicals industry -6.9%.


Return on Equity

High ROE: HWKN's Return on Equity (12.1%) is considered low.


Next Steps

Financial Health

How is Hawkins's financial position?


Financial Position Analysis

Short Term Liabilities: HWKN's short term assets ($131.0M) exceed its short term liabilities ($62.2M).

Long Term Liabilities: HWKN's short term assets ($131.0M) exceed its long term liabilities ($93.6M).


Debt to Equity History and Analysis

Debt Level: HWKN's debt to equity ratio (25.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if HWKN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HWKN's debt is well covered by operating cash flow (98.6%).

Interest Coverage: HWKN's interest payments on its debt are well covered by EBIT (16.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Hawkins's current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HWKN's dividend (2.11%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: HWKN's dividend (2.11%) is low compared to the top 25% of dividend payers in the US market (4.6%).


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 reasonably low payout ratio (34.4%), 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

  • Explore strong dividend paying companies in the Materials industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Patrick Hawkins (49yo)

9.33yrs

Tenure

US$1,873,926

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 ($USD1.87M) is about average for companies of similar size in the US market ($USD2.16M).

Compensation vs Earnings: Patrick's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Hawkins
CEO, President & Director9.33yrsUS$1.87m1.3% $6.1m
Jeffrey Oldenkamp
VP, CFO & Treasurer3.08yrsUS$932.36k0.25% $1.2m
Richard Erstad
VP, General Counsel & Secretary11.67yrsUS$720.01k0.24% $1.1m
Daniel Stauber
Director4.42yrsUS$49.96k0.11% $537.8k
Drew Grahek
Vice President of Operations1.83yrsno data0.056% $262.4k
Paul Siler
Corporate Controller7.5yrsno datano data

5.3yrs

Average Tenure

50yo

Average Age

Experienced Management: HWKN's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Hawkins
CEO, President & Director9.33yrsUS$1.87m1.3% $6.1m
Daniel Stauber
Director4.42yrsUS$49.96k0.11% $537.8k
Jeffrey Wright
Independent Director11.33yrsUS$132.33k0.16% $743.6k
Duane Jergenson
Director24.5yrsUS$108.96k0.33% $1.5m
John McKeon
Independent Chairman of the Board14.83yrsUS$184.96k0.45% $2.1m
James Thompson
Independent Director11.33yrsUS$123.40k0.14% $655.6k
Mary Schumacher
Independent Director7.75yrsUS$116.96k0.086% $402.9k
James Faulconbridge
Independent Director13.67yrsUS$119.96k0.14% $660.2k

11.3yrs

Average Tenure

60.5yo

Average Age

Experienced Board: HWKN's board of directors are seasoned and experienced ( 11.3 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Hawkins, Inc.
  • Ticker: HWKN
  • Exchange: NasdaqGS
  • Founded: 1938
  • Industry: Commodity Chemicals
  • Sector: Materials
  • Market Cap: US$469.161m
  • Shares outstanding: 10.66m
  • Website: https://www.hawkinsinc.com

Number of Employees


Location

  • Hawkins, Inc.
  • 2381 Rosegate
  • Roseville
  • Minnesota
  • 55113
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HWKNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1980

Biography

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. This segment primarily provides acids, alkalis, and industrial and food-grade salts. It also receives, stores, and distributes various chemicals in bulk quantities, such as liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. In addition, this segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade products that include liquid phosphates, lactates, and other blended products; repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals, and contract and private label bleach packaging. The Water Treatment segment offers chemicals, equipment, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool and agriculture water. The Health and Nutrition segment offers ingredient distribution, processing, and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, and health and wellness products. Its products portfolio includes minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. The company was founded in 1938 and is headquartered in Roseville, Minnesota. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 00:03
End of Day Share Price2020/07/13 00:00
Earnings2020/03/29
Annual Earnings2020/03/29


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.