Hawkins Inc

Consumer Discretionary
Specialty Chemicals
www.hawkinsinc.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $2.81B
PE 34
Debt $113.91M
Cash $7.53M
EV $2.91B
FCF $81.57M

Earnings

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Sales & Net Margins

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Earnings	$81.71M
EBIT	$112.09M
ROE	18%
ROA	16%
FCF	$81.57M
Equity	$443.37M
Growth Stability	-46%
PE	34.35
PEG	1.32
PB	6.33
P/FCF	34.41
P/S	3
Price/Cash	0
Debt/Equity	0.26
Debt/FCF	1.4
Net Margins	11%
Gross Margins	23%
Op. Margins	12%
Earnings CAGR	17%
Sales Growth YoY	4%
Sales Growth QoQ	-3%
Sales CAGR	11%
FCF CAGR	16%
Equity CAGR	8%
Earnings Stability	0.81
Earnings Growth YoY	4%
Earnings Growth QoQ	-16%
Earnings CAGR 5Y	26%

Sales CAGR 5Y	16%
FCF CAGR 5Y	25%
Equity CAGR 5Y	15%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	121%
Equity CAGR 3Y	16%
Market Cap	$2.81B
Revenue	$934.42M
Dividend Yield	0%
Payout Ratio	17%
Assets	$689.70M
Total Debt	$113.91M
Cash	$7.53M
Shares Outstanding	20.76M
EV	2.91B
Earnings Score	93%
Moat Score	94%
Safety Score	64%
Final Score	84%
Working Capital	117.53M
Current Ratio	2.27
Gross Profit	$212.64M
Shares Growth 3y	-0%
Equity Growth QoQ	5%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Hawkins Inc manufactures and sells a variety of chemicals and ingredients. The firm organizes itself into three segments based on the product type. The industrial segment, which generates the majority of revenue, sells private label bleach, caustic soda, sulfuric acid, hydrochloric acid, phosphoric acid, potassium hydroxide, and aqua ammonia. The water treatment segment sells chemicals and equipment used to treat potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The health and nutrition segment sells ingredients to food, beverage, personal care, and dietary supplement producers. The vast majority of revenue comes from the United States.

SEC Filings

Direct access to Hawkins Inc (HWKN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 29
- 10-Q Jun 30
- 10-K Mar 31
2023
- 10-Q Dec 31
- 10-Q Oct 01
- 10-Q Jul 02
- 10-K Apr 02
- 10-Q Jan 01
2022
- 10-Q Oct 02
- 10-Q Jul 03
- 10-K Apr 03

Sector Comparison

How does Hawkins Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Hawkins Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 17%

Stability 81%

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Hawkins Inc Discounted Cash Flow

Fully customizable DCF calculator online for Hawkins Inc.

Years

Calculation mode

= $2.5B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$82M	$95M	$110M	$127M	$148M	$171M	$199M	$230M	$267M	$310M	$359M	$3.6B
DCF		$86M	$91M	$96M	$101M	$106M	$112M	$118M	$125M	$131M	$138M	$1.4B
Value	$2.5B

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.

Years	03/2015	04/2016	04/2017	03/2018	03/2019	03/2020	03/2021	04/2022	04/2023	03/2024	TTM
Net Margins	5%	4%	5%	-2%	4%	5%	7%	7%	6%	8%	11%
ROA	-	7%	9%	-3%	10%	11%	12%	13%	15%	16%	16%
ROE	-	9%	10%	-5%	11%	12%	15%	17%	17%	19%	18%

Good Net Margins (10.54%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	03/2015	04/2016	04/2017	03/2018	03/2019	03/2020	03/2021	04/2022	04/2023	03/2024	TTM
Debt over FCF	-	11.13	4.78	14.5	2.68	2.03	4.74	9.49	4.19	0.91	1.4
Debt over Equity	0	0.67	0.51	0.55	0.44	0.3	0.41	0.45	0.35	0.27	0.26
Growth Stability	-	-	-	-46%	100%	100%	100%	100%	100%	100%	-46%

Good Debt/FCF ratio (1.4)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.26)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-46%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	03/2015	04/2016	04/2017	03/2018	03/2019	03/2020	03/2021	04/2022	04/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	14%	17%	4%	10%	-3%	10%	30%	21%	-2%	16%
Earnings YoY growth	-	-6%	24%	-141%	-366%	16%	44%	26%	16%	26%	26%
Equity YoY growth	-	4%	8%	-7%	8%	7%	14%	14%	16%	16%	15%
FCF YoY growth	-	99%	91%	-67%	363%	-3%	-33%	-38%	103%	310%	25%