Hawkins (HWKN) AI Stock Analysis

• Market Cap: $2.68B
• Dividend Yield: 0.46%
• Average Volume (3M): 122.51K
• Price to Earnings (P/E): 32.2
• Beta (1Y): 0.86
• 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: 127,271
• 30 Day Avg. Volume: 122,507
• 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: 1.48
• Enterprise Value/Revenue: 3.80
• Enterprise Value/Gross Profit: 16.50
• Enterprise Value/Ebitda: 27.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $136.00 ▼(-4.12% Downside)

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. (HWKN) is a Minnesota-based company primarily engaged in the manufacturing and distribution of specialty chemicals and food ingredients. The company serves a diverse range of industries, including water treatment, pharmaceuticals, and food processing, providing essential products that enhance safety and efficacy in various applications. Hawkins operates through three main segments: Water Treatment, Industrial, and Healthcare, each offering a unique portfolio of products designed to meet the specific needs of its customers.

How the Company Makes Money

Hawkins generates revenue through the sale of its specialty chemicals and food ingredients across its three business segments. The Water Treatment segment contributes significantly to revenue by providing chemicals used in municipal and industrial water treatment processes. The Industrial segment focuses on specialty chemicals used in manufacturing and production processes for various industries, including agriculture and energy. The Healthcare segment supplies high-quality ingredients for pharmaceutical and nutraceutical applications. Revenue is driven by a combination of direct sales, long-term contracts with customers, and partnerships with distributors. Additionally, Hawkins benefits from economies of scale in production and logistics, allowing for competitive pricing and increased market share. Seasonal demand and regulatory changes in the water treatment industry also play a role in influencing revenue streams.

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	144.10M	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	657.93M	590.53M	567.33M	472.55M
Cash, Cash Equivalents and Short-Term Investments	10.41M	5.10M	7.15M	7.57M	3.50M	3.00M
Total Debt	24.93M	159.74M	108.26M	120.33M	134.70M	110.57M
Total Liabilities	378.64M	309.57M	251.91M	240.52M	264.73M	207.30M
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: Negative
• Last Price: 141.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWKN, the sentiment is Negative. The current price of 141.85 is below the 20-day moving average (MA) of 154.91, below the 50-day MA of 166.36, and above the 200-day MA of 139.78, indicating a bearish trend. The MACD of -11.64 indicates Positive momentum. The RSI at 22.32 is Positive, neither overbought nor oversold. The STOCH value of 7.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HWKN.

Hawkins Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRM	67 Neutral	$3.57B	57.32	7.39%	―	19.12%	―
CBT	66 Neutral	$3.27B	10.21	22.05%	2.86%	-7.04%	-11.00%
AVNT	63 Neutral	$2.72B	24.09	4.79%	3.64%	1.03%	-24.57%
FUL	62 Neutral	$3.13B	27.80	6.05%	1.60%	-1.30%	-36.69%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
HWKN	58 Neutral	$2.68B	32.20	17.49%	0.46%	11.86%	1.99%
OLN	48 Neutral	$2.21B	41.83	2.67%	4.12%	4.68%	-62.80%

Hawkins Corporate Events

Hawkins Inc. Reports Steady Growth Amid Acquisitions

Hawkins Inc., a Minnesota-based company, operates in the chemical industry, providing water treatment solutions, specialty ingredients, and industrial chemicals across various sectors. In its latest earnings report, Hawkins Inc. highlighted a steady financial performance with a slight increase in sales and gross profit compared to the previous year. The company reported sales of $280.4 million for the quarter, up from $247.0 million the previous year, and a gross profit of $67.6 million, reflecting its strategic focus on expanding its specialty ingredients segment. Key financial metrics showed a stable operating income of $33.9 million and a net income of $22.6 million, despite increased interest expenses due to recent acquisitions. The acquisition of WaterSurplus, Inc. significantly contributed to the company’s growth, adding $5.7 million in sales for the quarter. Looking ahead, Hawkins Inc. remains focused on leveraging its recent acquisitions to strengthen its market position and drive long-term growth.

Hawkins Announces Realignment of Reporting Segments

Hawkins, Inc. announced a realignment of its reporting segments effective from the first quarter of fiscal 2026 to better reflect organizational changes and its evolution into a specialty ingredients company. The new segments are Water Treatment, Food and Health Sciences, and Industrial Solutions, with the latter two incorporating businesses previously categorized under different segments. This strategic move is aimed at enhancing operational management and resource allocation, which could impact the company’s market positioning and stakeholder interests.

The most recent analyst rating on (HWKN) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on Hawkins stock, see the HWKN Stock Forecast page.