tiprankstipranks
Trending News
More News >
Hawkins (HWKN)
NASDAQ:HWKN

Hawkins (HWKN) AI Stock Analysis

Compare
159 Followers

Top Page

HW

Hawkins

(NASDAQ:HWKN)

Rating:71Outperform
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 (HWKN) vs. SPDR S&P 500 ETF (SPY)

Hawkins Business Overview & Revenue Model

Company DescriptionHawkins, 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 MoneyHawkins, 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
85
Very Positive
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
78
Positive
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
72
Positive
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.
BreakdownTTMMar 2025Mar 2024Jun 2023Jun 2022Mar 2021
Income Statement
Total Revenue952.13M974.43M919.16M935.10M774.54M596.87M
Gross Profit218.81M225.54M193.64M165.12M146.52M123.76M
EBITDA142.77M119.17M137.23M117.23M95.51M79.99M
Net Income81.85M84.34M75.36M60.04M51.54M40.98M
Balance Sheet
Total Assets707.24M769.87M657.93M590.53M567.33M472.55M
Cash, Cash Equivalents and Short-Term Investments8.30M5.10M7.15M7.57M3.50M3.00M
Total Debt124.41M20.83M108.26M120.33M134.70M110.57M
Total Liabilities250.26M202.44M251.91M240.52M264.73M207.30M
Stockholders Equity456.98M460.29M406.03M350.02M302.60M265.25M
Cash Flow
Free Cash Flow80.23M70.00M119.35M29.08M14.32M23.00M
Operating Cash Flow122.14M111.10M159.50M77.40M42.84M43.79M
Investing Cash Flow-88.95M-127.95M-122.50M-41.23M-49.76M-71.43M
Financing Cash Flow-30.63M14.81M-37.41M-32.10M7.42M26.36M

Hawkins Technical Analysis

Technical Analysis Sentiment
Positive
Last Price152.47
Price Trends
50DMA
130.69
Positive
100DMA
119.69
Positive
200DMA
121.00
Positive
Market Momentum
MACD
5.04
Negative
RSI
79.05
Negative
STOCH
90.30
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 Risk Analysis

Hawkins disclosed 21 risk factors in its most recent earnings report. Hawkins reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Hawkins Peers Comparison

Overall Rating
UnderperformOutperform
Sector (43)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
KWKWR
74
Outperform
$2.20B23.576.78%1.56%-5.72%-19.82%
71
Outperform
$3.18B37.8519.47%0.47%6.01%12.38%
69
Neutral
$2.21B83.782.21%1.89%-7.91%-81.73%
OLOLN
64
Neutral
$2.52B43.192.94%3.65%-1.13%-81.74%
SSSSL
57
Neutral
$3.17B-28.05%2.00%-4.31%-1421.83%
ASASH
52
Neutral
$2.45B21.03-3.02%3.09%-7.63%-157.37%
43
Neutral
AU$1.42B-6.13-40.62%4.05%-4.78%-42.91%
* Basic Materials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HWKN
Hawkins
152.47
62.15
68.81%
ASH
Ashland
53.68
-36.56
-40.51%
IOSP
Innospec
88.70
-31.97
-26.49%
OLN
Olin
21.92
-22.87
-51.06%
KWR
Quaker Chemical
124.26
-42.31
-25.40%
SSL
Sasol
4.99
-2.97
-37.31%

Hawkins Corporate Events

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
Hawkins Amends Credit Agreement, Expands Facilities
Positive
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025