Hawkins Inc (HWKN) stock analysis

P/E above its 5-year median

Hawkins's P/E of 36.9 is above its own 5-year median of 23.1.

P/E above the industry

Hawkins's P/E of 36.9 is above the Wholesale Trade-non-durable Goods median of 22.6.

EV/EBITDA above its 5-year median

Hawkins's EV/EBITDA of 18.6 is above its 5-year median of 13.4.

P/B above the industry

Hawkins's price-to-book of 5.61 is above the Wholesale Trade-non-durable Goods median of 1.69.

Trading above fair value

The share price of $152.13 is above our fair value estimate of $88.93.

Margin of safety under 20%

The price is 71.1% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 5.0% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 11.0% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 3.2% over the last twelve months, against a 5-year average of 14.8% a year.

Growing faster than the industry

Revenue grew 9.0% over the last twelve months; the Wholesale Trade-non-durable Goods median is 3.8%.

Guidance issued

The latest outlook (full year effective tax rate, Oct 26, 2026) was issued for the first time, so it neither adds nor takes away points.

Gross margin slipping

Gross margin was 22.4% over the last twelve months, against 23.0% a year earlier.

Return on equity over 15%

Return on equity was 16.0% over the last twelve months and averaged 18.5% over five years.

Return on capital over 10%

Return on invested capital was 12.8%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Hawkins's return on equity of 16.0% is above the Wholesale Trade-non-durable Goods median of -6.0%.

Earnings grew over 5 years

Net income grew 14.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 7.5% over the last twelve months, against a 5-year average of 7.5%.

Net margin above the industry

Hawkins's net margin of 7.5% is above the Wholesale Trade-non-durable Goods median of -0.1%.

High debt

Debt is 40.6% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 37.2% five years ago to 40.6%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 65.0% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term assets cover short-term debts

Current assets are 2.28 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 6.70; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Hawkins paid dividends worth 0.6% of the share price over the last twelve months.

Yield below Treasuries

The 0.6% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Hawkins yields 0.6%.

Dividend was cut

The dividend per share fell by more than 10% at least once in the last 10 fiscal years.

Covered by earnings

Dividends take 18.7% of net income.

Covered by free cash flow

Dividends take 17.4% of free cash flow.