company background image
HWKN

HawkinsNasdaqGS:HWKN Stock Report

Market Cap

US$707.7m

7D

-0.8%

1Y

25.2%

Updated

03 Dec, 2021

Data

Company Financials +
HWKN fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends4/6

HWKN Stock Overview

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

Rewards

Trading at 39.1% below our estimate of its fair value

Earnings grew by 43.6% over the past year

Pays a reliable dividend of 1.55%

Risk Analysis

No risks detected for HWKN from our risk checks.

Hawkins Competitors

Balchem

NasdaqGS:BCPC

US$5.1b

American Vanguard

NYSE:AVD

US$459.1m

Price History & Performance

Summary of all time highs, changes and price drops for Hawkins
Historical stock prices
Current Share PriceUS$33.52
52 Week HighUS$39.73
52 Week LowUS$24.55
Beta0.87
1 Month Change-10.47%
3 Month Change-8.67%
1 Year Change25.17%
3 Year Change68.06%
5 Year Change23.69%
Change since IPO2,084.53%

Recent News & Updates

Oct 29
Hawkins (NASDAQ:HWKN) Shareholders Will Want The ROCE Trajectory To Continue

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...

Oct 20

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.

Sep 09
Is Now The Time To Put Hawkins (NASDAQ:HWKN) On Your Watchlist?

Is Now The Time To Put Hawkins (NASDAQ:HWKN) On Your Watchlist?

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

Shareholder Returns

HWKNUS ChemicalsUS Market
7D-0.8%-1.7%-2.7%
1Y25.2%18.0%16.6%

Return vs Industry: HWKN exceeded the US Chemicals industry which returned 21.3% over the past year.

Return vs Market: HWKN exceeded the US Market which returned 19.4% over the past year.

Price Volatility

Is HWKN's price volatile compared to industry and market?
HWKN volatility
HWKN Average Weekly Movement4.2%
Chemicals Industry Average Movement5.6%
Market Average Movement6.1%
10% most volatile stocks in US Market14.8%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
1938742Patrick Hawkinshttps://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

How do Hawkins's earnings and revenue compare to its market cap?
HWKN fundamental statistics
Market CapUS$707.70m
Earnings (TTM)US$47.76m
Revenue (TTM)US$670.42m

14.8x

P/E Ratio

1.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HWKN income statement (TTM)
RevenueUS$670.42m
Cost of RevenueUS$534.17m
Gross ProfitUS$136.25m
ExpensesUS$88.49m
EarningsUS$47.76m

Last Reported Earnings

Sep 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.26
Gross Margin20.32%
Net Profit Margin7.12%
Debt/Equity Ratio29.5%

How did HWKN perform over the long term?

See historical performance and comparison

Dividends

1.6%

Current Dividend Yield

22%

Payout Ratio

Valuation

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

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HWKN ($33.52) is trading below our estimate of fair value ($55.04)

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 (14.8x) compared to the US Chemicals industry average (21.3x).

PE vs Market: HWKN is good value based on its PE Ratio (14.8x) compared to the US market (16.9x).


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 (2.5x) is in line with the US Chemicals industry average.


Future Growth

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

10.9%

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 24.1%.


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?

1.55%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HWKN's dividend (1.55%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: HWKN's dividend (1.55%) is low compared to the top 25% of dividend payers in the US market (3.61%).


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?

6.7yrs

Average management tenure


CEO

Patrick Hawkins (50 yo)

10.75yrs

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 ($USD2.16M) is about average for companies of similar size in the US market ($USD2.36M).

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 (6.7 years average tenure).


Board Members

Experienced Board: HWKN's board of directors are considered experienced (7.5 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
  • Market Cap: US$707.697m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 23:54
End of Day Share Price2021/12/03 00:00
Earnings2021/09/26
Annual Earnings2021/03/28


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.