Compoundeer Logo
COMPOUNDEER
Uncovering Potential
RankingCompaniesDCF
HWKN Logo

Hawkins Inc

HWKN

Wholesale-Chemicals & Allied Products

Mkt Cap

$1.312B

PE

19.01

Debt

$69.91M

Cash

$10.97M

EV

$1.37B

FCF

$106.7M

Market Cap

$1.312B

P/E Ratio

19.01

Debt

$69.91M

Cash

$10.97M

EV

$1.37B

FCF

$106.7M

Hawkins, Inc. operates as a specialty chemical and ingredients company in the United States. 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 manufactures sodium hypochlorite and agricultural products, as well as various food-grade and pharmaceutical products, such as liquid phosphates, lactates, and other blended products; and receives, stores, and distributes various chemicals comprising liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. It also repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals. The Water Treatment segment provides chemicals, products, equipment, services, and solutions for potable water, municipal and industrial wastewater, industrial process water, non-residential swimming pool water, 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, vitamins and amino acids, excipients, joint products, botanicals and herbs, sweeteners, and enzymes. The company was founded in 1938 and is headquartered in Roseville, Minnesota.

Sector

  • ASH Logo

    ASH

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$106.7M$123.8M$142.2M$161.6M$181.7M$202M$222M$241.4M$259.4M$275.5M$289.3M$2.893B
DCF$107.7M$107.6M$106.3M$103.9M$100.4M$95.99M$90.73M$84.79M$78.33M$71.52M$715.2M
Value$1.662B

In the chart Earnings are multiplied by this value.

Earnings Growth 17%
Earnings Stability 82%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years03-201504-201604-201703-201803-201903-202003-202104-202204-2023TTM
Net Margin5.3%4.4%4.7%-1.8%4.4%5.3%6.9%6.7%6.4%7.4%
ROA12%7.1%9.2%-3%9.5%11%12%13%15%17%
ROE9.9%9%10%-4.5%11%12%15%17%17%18%

What is the average Net Margin?

The average Net Margin over the past 5 years is +4.63%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.42%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +9.42%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.85%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +11.41%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +3.69%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years03-201504-201604-201703-201803-201903-202003-202104-202204-2023TTM
Debt FCF0.0011.134.7814.502.682.034.749.494.190.66
Debt Equity0.000.670.510.550.440.300.410.450.350.18
MIN
Graham Stability--100%-46%100%100%100%100%100%-46%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.66.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.81.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.46.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years04-201603-201803-202004-2022Trend
Revenue12%13%20%21%1.6%
Net Income19%-28%16%2.9%
Stockholders Equity8.2%12%14%16%1.6%
FCF13%31%-5.4%100%1.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +13.15%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.55%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is +2.95%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +11.59%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.56%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +30.63%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +1.81%.