Hawkins Inc

Consumer Discretionary
Specialty Chemicals
www.hawkinsinc.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $2.49B
PE 30
Debt $123.91M
Cash $8.31M
EV $2.61B
FCF $80.23M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$81.85M
EBIT	$114.68M
ROE	18%
ROA	16%
FCF	$80.23M
Equity	$456.98M
Growth Stability	100%
PE	30.48
PEG	1.24
PB	5.46
P/FCF	31.1
P/S	2.62
Price/Cash	0
Debt/Equity	0.27
Debt/FCF	1.54
Net Margins	9%
Gross Margins	23%
Op. Margins	12%
Earnings CAGR	17%
Sales Growth YoY	8%
Sales Growth QoQ	-8%
Sales CAGR	10%
FCF CAGR	15%
Equity CAGR	9%
Earnings Stability	0.82
Earnings Growth YoY	1%
Earnings Growth QoQ	-38%
Earnings CAGR 5Y	25%

Sales CAGR 5Y	15%
FCF CAGR 5Y	29%
Equity CAGR 5Y	15%
Earnings CAGR 3Y	5%
Sales CAGR 3Y	5%
FCF CAGR 3Y	158%
Equity CAGR 3Y	16%
Market Cap	$2.49B
Revenue	$952.13M
Dividend Yield	1%
Payout Ratio	17%
Assets	$707.24M
Total Debt	$123.91M
Cash	$8.31M
Shares Outstanding	20.77M
EV	2.61B
Earnings Score	93%
Moat Score	93%
Safety Score	95%
Final Score	94%
Working Capital	126.1M
Current Ratio	2.5
Gross Profit	$218.81M
Shares Growth 3y	-0%
Equity Growth QoQ	3%
Equity Growth YoY	16%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

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 Dec 29
- 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?

Loading chart...

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 82%

loading chart...

Hawkins Inc Discounted Cash Flow

Fully customizable DCF calculator online for Hawkins Inc.

Years

Calculation mode

= $2.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$80M	$92M	$106M	$122M	$140M	$161M	$185M	$213M	$245M	$282M	$324M	$3.2B
DCF		$84M	$88M	$92M	$96M	$100M	$105M	$109M	$114M	$120M	$125M	$1.2B
Value	$2.3B

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

Net Margins (9.33%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

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	04/2016	04/2017	03/2018	03/2019	03/2020	03/2021	04/2022	04/2023	03/2024	TTM
Debt over FCF	-	4.78	14.5	2.68	2.03	4.74	9.49	4.19	0.91	1.54
Debt over Equity	0.67	0.51	0.55	0.44	0.3	0.41	0.45	0.35	0.27	0.27
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (1.54)

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.

Good Debt/Equity ratio (0.27)

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

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good 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	04/2016	04/2017	03/2018	03/2019	03/2020	03/2021	04/2022	04/2023	03/2024	CAGR 5Y
Revenue YoY growth	-	17%	4%	10%	-3%	10%	30%	21%	-2%	15%
Earnings YoY growth	-	24%	-141%	-366%	16%	44%	26%	16%	26%	25%
Equity YoY growth	-	8%	-7%	8%	7%	14%	14%	16%	16%	15%
FCF YoY growth	-	91%	-67%	363%	-3%	-33%	-38%	103%	310%	29%