Hawkins (HWKN) AI Stock Analysis

• Market Cap: $3.18B
• Dividend Yield: 0.47%
• Average Volume (3M): 152.90K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.78
• Revenue Growth: 6.01%
• EPS Growth: 12.38%
• Country: US
• Employees: 928
• Sector: Basic Materials
• Sector Strength: 70
• Industry: Chemicals - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 20,861,430
• 10 Day Avg. Volume: 223,107
• 30 Day Avg. Volume: 152,904
• PEG Ratio: 0.90
• Price to Book (P/B): 2.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.64
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.28
• Enterprise Value/Gross Profit: 4.72
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $160.00
• Price Target Upside: 4.94% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: $166.00 ▲(8.87%Upside)

Hawkins' strong financial performance and strategic corporate event positively impact the stock score. However, technical indicators suggest overbought conditions, and the valuation appears high, which could limit upside potential.

Positive Factors

Acquisition Synergies

There are significant synergies from the acquisition of WaterSurplus that should be realized.

Industrial Sales

Hawkins (HWKN) reported fiscal third quarter results ahead of estimates due to higher industrial sales as volumes picked up with lower prices.

Revenue Performance

Hawkins (HWKN) ended fiscal 2025 with organic growth in each of its segments and revenue performance ahead of estimates.

Negative Factors

Interest Expense

Fiscal 2026 EPS is lower to take into consideration the interest expense for acquiring WaterSurplus.

Trade Dynamics

The introduction of tariffs and a trade war between the USA and China would put greater demand for specialty chemicals produced in the USA.

Valuation

Valuation has not evolved to give a boost in confidence that the downside risk would be limited.

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, Inc. generates revenue primarily through the production and distribution of specialty chemicals and ingredients. The company's key revenue streams include the sale of products in its three main sectors: industrial, water treatment, and health and nutrition. In the industrial sector, Hawkins provides chemicals used in manufacturing and processing applications. The water treatment sector involves supplying chemicals for municipal and industrial water treatment processes. In the health and nutrition sector, Hawkins offers ingredients for food, beverage, and pharmaceutical industries. The company leverages a robust distribution network and strategic partnerships with manufacturers and distributors to expand its market reach and enhance its revenue potential.

Hawkins Financial Statement Overview

Summary

Hawkins demonstrates strong financial metrics with consistent revenue and profit growth, efficient cost management, and a solid equity position. However, there are concerns regarding cash flow management due to a significant decline in free cash flow.

Income Statement

Hawkins demonstrates a strong financial performance with consistent revenue growth, highlighted by a 7% increase from 2024 to 2025. Gross profit margin improved to 23.1% in 2025, indicating efficient cost management. The net profit margin rose to 8.7%, reflecting increased profitability. EBIT and EBITDA margins remain robust at 12.2%, showcasing stable operational efficiency.

Balance Sheet

The balance sheet shows a healthy financial position with a debt-to-equity ratio of 0.05, reflecting low leverage. The equity ratio improved to 59.8%, indicating strong asset financing through equity. ROE increased to 18.3%, demonstrating effective use of equity to generate profits. However, the decrease in cash reserves from 2024 to 2025 suggests potential liquidity concerns.

Cash Flow

Cash flow analysis reveals a decline in free cash flow by 41.4% in 2025 due to reduced operating cash flow, despite positive operating cash flow to net income ratio at 1.32, indicating good cash generation. The free cash flow to net income ratio decreased to 0.83, suggesting a need for improved cash retention strategies.

Breakdown	TTM	Mar 2025	Mar 2024	Jun 2023	Jun 2022	Mar 2021
Income Statement
Total Revenue	952.13M	974.43M	919.16M	935.10M	774.54M	596.87M
Gross Profit	218.81M	225.54M	193.64M	165.12M	146.52M	123.76M
EBITDA	142.77M	119.17M	137.23M	117.23M	95.51M	79.99M
Net Income	81.85M	84.34M	75.36M	60.04M	51.54M	40.98M
Balance Sheet
Total Assets	707.24M	769.87M	657.93M	590.53M	567.33M	472.55M
Cash, Cash Equivalents and Short-Term Investments	8.30M	5.10M	7.15M	7.57M	3.50M	3.00M
Total Debt	124.41M	20.83M	108.26M	120.33M	134.70M	110.57M
Total Liabilities	250.26M	202.44M	251.91M	240.52M	264.73M	207.30M
Stockholders Equity	456.98M	460.29M	406.03M	350.02M	302.60M	265.25M
Cash Flow
Free Cash Flow	80.23M	70.00M	119.35M	29.08M	14.32M	23.00M
Operating Cash Flow	122.14M	111.10M	159.50M	77.40M	42.84M	43.79M
Investing Cash Flow	-88.95M	-127.95M	-122.50M	-41.23M	-49.76M	-71.43M
Financing Cash Flow	-30.63M	14.81M	-37.41M	-32.10M	7.42M	26.36M

Hawkins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 152.47
• 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 152.47 is above the 20-day moving average (MA) of 139.48, above the 50-day MA of 130.69, and above the 200-day MA of 121.00, indicating a bullish trend. The MACD of 5.04 indicates Negative momentum. The RSI at 79.05 is Negative, neither overbought nor oversold. The STOCH value of 90.30 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
KWR	74 Outperform	$2.20B	23.57	6.78%	1.56%	-5.72%	-19.82%
HWKN	71 Outperform	$3.18B	37.85	19.47%	0.47%	6.01%	12.38%
IOSP	69 Neutral	$2.21B	83.78	2.21%	1.89%	-7.91%	-81.73%
OLN	64 Neutral	$2.52B	43.19	2.94%	3.65%	-1.13%	-81.74%
SSL	57 Neutral	$3.17B	―	-28.05%	2.00%	-4.31%	-1421.83%
ASH	52 Neutral	$2.45B	21.03	-3.02%	3.09%	-7.63%	-157.37%
Sector *	43 Neutral	AU$1.42B	-6.13	-40.62%	4.05%	-4.78%	-42.91%

Hawkins Corporate Events

Hawkins Amends Credit Agreement, Expands Facilities

On April 25, 2025, Hawkins, Inc. amended its existing credit agreement with U.S. Bank and other lenders, increasing its revolving credit facilities to $400 million. This amendment allows Hawkins to draw funds for various purposes, including acquisitions, as evidenced by the $150 million used to acquire assets of Surplus Management, Inc. The credit facility, secured by the company’s assets, is set to mature on April 25, 2030, and includes specific financial covenants and conditions that Hawkins must adhere to, impacting its operational flexibility and financial strategy.