Hawkins (HWKN) AI Stock Analysis

• Market Cap: $2.67B
• Dividend Yield: 0.54%
• Average Volume (3M): 119.91K
• Price to Earnings (P/E): 31.9
• Beta (1Y): 0.76
• Revenue Growth: 6.01%
• EPS Growth: 12.38%
• Country: US
• Employees: 928
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Chemicals - Specialty
• EPS (TTM): 0.78
• Shares Outstanding: 20,800,013
• 10 Day Avg. Volume: 139,840
• 30 Day Avg. Volume: 119,906
• PEG Ratio: 9.90
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.81
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 11.73
• Enterprise Value/Ebitda: 4.47
• 1Y Price Target: $142.50
• Price Target Upside: 10.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 73 Outperform
• Price Target: $132.00 ▲( 2.72% Upside)

Hawkins benefits from strong financial performance and strategic corporate actions, positioning it well in the Chemicals industry. Despite high valuation metrics, the company's solid growth prospects and operational efficiency support its stock rating.

Positive Factors

Acquisition Synergies

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

Revenue Performance

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

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.

Negative Factors

Industrial Segment Pressure

In the last three years the industrial segment has been under pressure with volumes declining.

Interest Expense

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

Stock 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 shows strong revenue and profit growth, with robust operational efficiency and a healthy balance sheet. However, cash flow management requires attention.

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
	EBIT
114.68M	119.17M	104.04M	88.15M	71.19M	55.88M
	EBITDA
142.77M	119.17M	137.23M	117.23M	95.51M	79.99M
	Net Income Common Stockholders
81.85M	84.34M	75.36M	60.04M	51.54M	40.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.74M	5.10M	7.15M	7.57M	3.50M	3.00M
	Total Assets
644.05M	769.87M	657.93M	590.53M	567.33M	472.55M
	Total Debt
130.82M	20.83M	108.26M	120.33M	134.70M	110.57M
	Net Debt
125.08M	15.73M	101.11M	112.77M	131.20M	107.57M
	Total Liabilities
250.29M	202.44M	251.91M	240.52M	264.73M	207.30M
	Stockholders Equity
393.75M	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: 128.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 128.5 is above the 20-day moving average (MA) of 122.21, above the 50-day MA of 116.14, and above the 200-day MA of 118.64, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 66.40 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, 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
HWKN	73 Outperform	$2.67B	31.90	19.47%	0.54%	6.01%	12.38%
KWR	68 Neutral	$1.88B	20.20	6.78%	1.79%	-5.72%	-19.82%
IOSP	66 Neutral	$2.14B	80.83	2.21%	1.81%	-7.91%	-81.73%
OLN	58 Neutral	$2.23B	38.13	2.94%	4.13%	-1.13%	-81.74%
SSL	53 Neutral	$2.85B	―	-28.05%	2.00%	-4.31%	-1421.83%
Sector *	50 Neutral	$1.99B	-1.06	-21.34%	3.71%	2.03%	-30.65%
ASH	44 Neutral	$2.25B	21.03	-3.02%	3.29%	-7.63%	-157.37%

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.