Hawkins (HWKN) AI Stock Analysis

• Market Cap: $3.29B
• Dividend Yield: 0.5%
• Average Volume (3M): 158.85K
• Price to Earnings (P/E): 39.9
• Beta (1Y): 0.77
• Revenue Growth: 11.86%
• EPS Growth: 1.99%
• Country: US
• Employees: 928
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 1.08
• Shares Outstanding: 20,890,240
• 10 Day Avg. Volume: 144,739
• 30 Day Avg. Volume: 158,849
• PEG Ratio: 2.14
• Price to Book (P/B): 4.79
• Price to Sales (P/S): 2.26
• P/FCF Ratio: 31.48
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 16.50
• Enterprise Value/Ebitda: 25.13
• 1Y Price Target: $200.00
• Price Target Upside: 25.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $160.00 ▲(0.52% Upside)

Hawkins' strong financial performance is offset by bearish technical indicators and a high valuation. The company's solid revenue growth and improved financial stability are positive, but negative market momentum and a high P/E ratio suggest caution.

Positive Factors

Revenue Growth

Consistent revenue growth indicates Hawkins' ability to expand its market presence and product adoption, supporting long-term business sustainability.

Financial Stability

Reduced leverage enhances financial stability and lowers financial risk, providing Hawkins with greater flexibility for future investments and growth.

Profitability

A strong net profit margin reflects effective cost management, which supports sustained profitability and competitive positioning in the market.

Negative Factors

Free Cash Flow Growth

Negative free cash flow growth may limit Hawkins' ability to maintain cash reserves, potentially impacting its capacity to fund operations and future growth.

Operating Efficiency

A declining EBIT margin suggests potential pressure on operating efficiency, which could affect Hawkins' ability to maintain profitability in the long term.

Cash Flow Coverage

While cash generation is strong, the relatively low coverage ratio may indicate limited capacity to cover all financial obligations, affecting financial flexibility.

Hawkins Business Overview & Revenue Model

Company Description

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. This segment primarily provides acids, alkalis, and food-grade and pharmaceutical salts and ingredients. It also receives, stores, and distributes various chemicals, such as liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. In addition, this segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade and pharmaceutical products that include liquid phosphates, lactates, and other blended products; repackages water treatment chemicals and bulk industrial chemicals; and performs custom blending of chemicals, and contract and private label bleach packaging. The Water Treatment segment offers chemicals, equipment, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool 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, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. The company was founded in 1938 and is headquartered in Roseville, Minnesota.

How the Company Makes Money

Hawkins generates revenue through the sale of chemicals and related services across its two main segments. The Water Treatment segment is a significant contributor, offering products such as water disinfectants, coagulants, and corrosion inhibitors to municipalities and industrial customers. The Industrial segment provides specialty chemicals used in manufacturing processes, including food-grade and pharmaceutical applications. Hawkins also benefits from long-term contracts and partnerships with key customers, which provide a steady stream of recurring revenue. Additionally, the company engages in bulk chemical distribution, allowing it to optimize logistics and pricing strategies, further enhancing its profitability.

Hawkins Financial Statement Overview

Summary

Hawkins demonstrates strong revenue growth and profitability with a healthy net profit margin. The balance sheet shows improved leverage, enhancing financial stability. However, negative free cash flow growth warrants attention.

Income Statement

Hawkins demonstrates strong revenue growth with a 3.3% increase in TTM, supported by a solid gross profit margin of 23.0%. The net profit margin is healthy at 7.95%, indicating efficient cost management. However, the EBIT margin has decreased from the previous annual report, suggesting potential pressure on operating efficiency.

Balance Sheet

The company's debt-to-equity ratio has improved significantly to 0.05 in TTM, indicating reduced leverage and financial risk. Return on equity remains robust at 17.4%, reflecting effective use of equity capital. The equity ratio is stable, suggesting a strong financial position.

Cash Flow

Operating cash flow is strong, with a coverage ratio of 1.25, indicating good cash generation relative to net income. However, free cash flow growth is negative, which could signal potential challenges in maintaining cash reserves. The free cash flow to net income ratio remains healthy at 0.64.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.05B	974.43M	919.16M	935.10M	774.54M	596.87M
Gross Profit	240.67M	225.54M	193.64M	165.12M	146.52M	123.76M
EBITDA	158.08M	159.76M	137.23M	117.23M	95.51M	78.55M
Net Income	83.12M	84.34M	75.36M	60.04M	51.54M	40.98M
Balance Sheet
Total Assets	984.16M	769.87M	673.16M	602.36M	567.33M	481.44M
Cash, Cash Equivalents and Short-Term Investments	10.41M	5.10M	7.15M	7.57M	3.50M	3.00M
Total Debt	293.25M	159.74M	108.26M	120.33M	136.36M	110.57M
Total Liabilities	477.20M	309.57M	267.13M	252.34M	264.73M	216.20M
Stockholders Equity	506.97M	460.29M	406.03M	350.02M	302.60M	265.25M
Cash Flow
Free Cash Flow	78.76M	70.00M	119.35M	29.08M	14.32M	23.00M
Operating Cash Flow	122.91M	111.10M	159.50M	77.40M	42.84M	43.79M
Investing Cash Flow	-267.44M	-127.95M	-122.50M	-41.23M	-49.76M	-71.43M
Financing Cash Flow	147.41M	14.81M	-37.41M	-32.10M	7.42M	26.36M

Hawkins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 159.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWKN, the sentiment is Positive. The current price of 159.18 is above the 20-day moving average (MA) of 147.40, above the 50-day MA of 138.02, and above the 200-day MA of 146.24, indicating a bullish trend. The MACD of 4.00 indicates Negative momentum. The RSI at 71.34 is Negative, neither overbought nor oversold. The STOCH value of 97.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWKN.

Hawkins Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBT	66 Neutral	$3.85B	12.11	21.98%	2.72%	-7.04%	-11.28%
AVNT	63 Neutral	$3.14B	27.81	4.79%	3.48%	1.03%	-24.57%
FUL	62 Neutral	$3.54B	31.46	6.05%	1.54%	-1.30%	-36.69%
PRM	62 Neutral	$4.38B	65.94	7.39%	―	19.12%	―
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$3.29B	39.91	17.49%	0.50%	11.86%	1.99%
OLN	52 Neutral	$2.72B	51.44	2.67%	3.91%	4.68%	-62.80%

Hawkins Corporate Events

Hawkins announces retirement of longtime general counsel Erstad

On December 17, 2025, Hawkins, Inc. announced that Richard G. Erstad, who has served as Vice President, General Counsel and Secretary for 17 years, plans to retire. As part of a planned leadership transition, Erstad is expected to step down from his role as an executive officer on December 28, 2025, at the end of the company’s third fiscal quarter, but will remain employed with Hawkins until May 2026 to help ensure continuity and a smooth handover of his responsibilities.

The most recent analyst rating on (HWKN) stock is a Hold with a $136.00 price target. To see the full list of analyst forecasts on Hawkins stock, see the HWKN Stock Forecast page.