Hawkins, Inc.
Hawkins, Inc. Fundamental Analysis
Hawkins, Inc. (HWKN) shows weak financial fundamentals with a PE ratio of 36.72, profit margin of 7.75%, and ROE of 16.73%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 6.01%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 59.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze HWKN's fundamental strength across five key dimensions:
Efficiency Score
WeakHWKN struggles to generate sufficient returns from assets.
Valuation Score
ModerateHWKN shows balanced valuation metrics.
Growth Score
ExcellentHWKN delivers strong and consistent growth momentum.
Financial Health Score
ExcellentHWKN maintains a strong and stable balance sheet.
Profitability Score
ModerateHWKN maintains healthy but balanced margins.
Key Financial Metrics
Is HWKN Expensive or Cheap?
P/E Ratio
HWKN trades at 36.72 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, HWKN's PEG of -49.08 indicates potential undervaluation.
Price to Book
The market values Hawkins, Inc. at 5.83 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 16.03 times EBITDA. This signals the market has high growth expectations.
How Well Does HWKN Make Money?
Net Profit Margin
For every $100 in sales, Hawkins, Inc. keeps $7.75 as profit after all expenses.
Operating Margin
Core operations generate 11.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.73 in profit for every $100 of shareholder equity.
ROA
Hawkins, Inc. generates $8.44 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Hawkins, Inc. produces operating cash flow of $138.51M, showing steady but balanced cash generation.
Free Cash Flow
Hawkins, Inc. produces free cash flow of $88.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.23 in free cash annually.
FCF Yield
HWKN converts 2.88% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-49.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.83
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.87
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How HWKN Stacks Against Its Sector Peers
| Metric | HWKN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.72 | 27.41 | Worse (Expensive) |
| ROE | 16.73% | 859.00% | Weak |
| Net Margin | 7.75% | -120873.00% (disorted) | Weak |
| Debt/Equity | 0.54 | 0.51 | Neutral |
| Current Ratio | 2.35 | 4.80 | Strong Liquidity |
| ROA | 8.44% | -3590.00% (disorted) | Weak |
HWKN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Hawkins, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
83.47%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
202.42%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
91.84%
Industry Style: Cyclical, Commodity, Value
High Growth