Hawkins (HWKN) AI Stock Analysis

• Market Cap: $3.67B
• Dividend Yield: 0.43%
• Average Volume (3M): 169.16K
• Price to Earnings (P/E): 43.2
• Beta (1Y): 0.84
• Revenue Growth: 9.51%
• EPS Growth: 5.20%
• Country: US
• Employees: 928
• Sector: Basic Materials
• Sector Strength: 61
• Industry: Chemicals - Specialty
• EPS (TTM): 1.40
• Shares Outstanding: 20,877,130
• 10 Day Avg. Volume: 113,612
• 30 Day Avg. Volume: 169,159
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.25
• Enterprise Value/Gross Profit: 14.10
• Enterprise Value/Ebitda: 21.29
• 1Y Price Target: $191.50
• Price Target Upside: 12.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 74 Outperform
• Price Target: $183.00 ▲(7.27% Upside)

Hawkins' overall stock score is driven by strong financial health and positive technical momentum, suggesting it is well-positioned in the specialty chemicals sector. However, the high P/E ratio and low dividend yield present some valuation concerns. Continued monitoring of financial performance and market conditions will be essential for potential investors.

Positive Factors

Revenue Growth

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

Balance Sheet Health

Low leverage provides financial stability and flexibility, allowing Hawkins to invest in growth opportunities and withstand economic fluctuations.

Segment Realignment

Realignment of segments can enhance operational management and resource allocation, potentially improving market positioning and stakeholder value.

Negative Factors

High Capital Expenditures

High capital expenditures, while supporting growth, can strain cash resources and require careful management to avoid impacting liquidity.

Valuation Concerns

A high P/E ratio can indicate overvaluation, potentially limiting stock price appreciation and making it less attractive to value-focused investors.

Dividend Yield

Low dividend yield may deter income-focused investors, impacting the attractiveness of Hawkins' stock as a long-term investment option.

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 solid financial health, with strong revenue growth, profitability, and cash flow generation. The income statement shows robust revenue and margin performance, the balance sheet reflects low leverage and strong ROE, and the cash flow statement highlights effective cash management despite high capital expenditures.

Income Statement

Hawkins has demonstrated strong growth in revenue, with TTM (Trailing-Twelve-Months) revenue increasing by 3.9% from the previous annual period. The gross profit margin stands at 23%, and the net profit margin is at 8.4%, indicating solid profitability. EBIT and EBITDA margins of 11.9% and 13.9% respectively also reflect efficient operations. The consistent revenue growth and healthy margins position Hawkins well in the specialty chemicals sector.

Balance Sheet

The company's balance sheet is robust with a debt-to-equity ratio of 0.04, showing low leverage. The equity ratio is 49%, indicating a strong capital structure. Return on equity (ROE) is a healthy 17.5%, showcasing effective use of shareholder equity to generate profits. The balance of debt and equity provides stability and financial flexibility, though maintaining this low leverage will be crucial to mitigate any future risks.

Cash Flow

Hawkins has shown positive free cash flow growth with a current TTM free cash flow of $81 million, up from $70 million in the previous period. The operating cash flow to net income ratio is 1.48, indicating strong cash flow generation relative to net income. The free cash flow to net income ratio of 0.96 highlights effective cash management. Despite high capital expenditures, the company maintains robust cash flow, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	974.43M	919.16M	935.10M	774.54M	596.87M
Gross Profit	233.25M	225.54M	193.64M	165.12M	146.52M	123.76M
EBITDA	154.50M	159.76M	137.23M	117.23M	95.51M	79.99M
Net Income	84.64M	84.34M	75.36M	60.04M	51.54M	40.98M
Balance Sheet
Total Assets	988.27M	769.87M	657.93M	590.53M	567.33M	472.55M
Cash, Cash Equivalents and Short-Term Investments	14.50M	5.10M	7.15M	7.57M	3.50M	3.00M
Total Debt	308.67M	159.74M	108.26M	120.33M	134.70M	110.57M
Total Liabilities	503.70M	309.57M	251.91M	240.52M	264.73M	207.30M
Stockholders Equity	484.57M	460.29M	406.03M	350.02M	302.60M	265.25M
Cash Flow
Free Cash Flow	81.01M	70.00M	119.35M	29.08M	14.32M	23.00M
Operating Cash Flow	125.00M	111.10M	159.50M	77.40M	42.84M	43.79M
Investing Cash Flow	-256.69M	-127.95M	-122.50M	-41.23M	-49.76M	-71.43M
Financing Cash Flow	137.31M	14.81M	-37.41M	-32.10M	7.42M	26.36M

Hawkins Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 170.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 170.59 is below the 20-day moving average (MA) of 170.75, above the 50-day MA of 164.96, and above the 200-day MA of 131.16, indicating a neutral trend. The MACD of 1.58 indicates Positive momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 73.67 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	74 Outperform	$3.67B	43.23	18.69%	0.43%	9.51%	5.20%
SSL	72 Outperform	$4.55B	11.94	4.56%	2.00%	-6.73%	―
KWR	70 Neutral	$2.50B	21.71	-0.52%	1.38%	-3.09%	-106.46%
IOSP	63 Neutral	$2.12B	113.00	1.55%	1.96%	-5.45%	-87.13%
Sector *	61 Neutral	$10.29B	7.21	-0.05%	2.89%	2.87%	-36.73%
OLN	55 Neutral	$2.87B	41.89	-0.69%	3.15%	1.49%	-105.20%
ASH	48 Neutral	$2.42B	21.03	-34.43%	3.09%	-11.38%	-690.99%

Hawkins Corporate Events

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.

Hawkins Announces Board Election and Governance Updates

At the annual meeting of shareholders on July 30, 2025, Hawkins company announced the election of eight directors to its Board, the ratification of Deloitte & Touche LLP as its independent public accounting firm for the fiscal year ending March 29, 2026, and the approval of executive compensation on a non-binding advisory basis. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its future financial oversight and executive management policies.