📊 HWKN Key Takeaways
Is Hawkins Inc. (HWKN) a Good Investment?
Hawkins demonstrates solid operational fundamentals with strong free cash flow ($86.1M) and healthy liquidity (2.21x current ratio), but the extreme revenue growth of 8123% coupled with declining net income (-3.3%) signals either temporary integration disruption from a major acquisition or concerning margin compression requiring investigation before conviction.
Hawkins shows solid fundamentals with double‑digit operating margins, healthy ROE, and strong free cash flow that slightly exceeds net income, supported by a sound liquidity profile and moderate leverage. The outsized revenue jump appears anomalous or non‑recurring, but core cash generation and balance sheet strength underpin continued resilience and reinvestment capacity.
Why Buy Hawkins Inc. Stock? HWKN Key Strengths
- Strong free cash flow generation of $86.1M with 7.9% FCF margin demonstrates underlying operational capability
- Healthy liquidity profile with 2.21x current ratio and conservative debt-to-equity ratio of 0.46x
- Positive profitability metrics with 7.5% net margin and respectable ROE of 15.3% despite growth headwinds
- Consistent profitability with 12% operating margin and 8.1% net margin
- Strong free cash flow and ~100% NI-to-FCF conversion
- Healthy liquidity (2.35x current, 1.46x quick) and moderate leverage (0.51x D/E)
HWKN Stock Risks: Hawkins Inc. Investment Risks
- Severe revenue-profit disconnect: 8123% revenue growth versus -3.3% net income decline suggests either undisclosed acquisition integration costs, margin compression, or accounting anomalies requiring clarification
- Critically low cash position of $3.9M relative to $244M long-term debt and company size raises working capital concerns in chemical wholesale sector
- Sustained profitability decline year-over-year contradicts growth narrative and may indicate structural margin pressure rather than temporary costs
- Sustainability of extreme reported revenue growth; potential normalization
- Margin sensitivity to input chemical prices and pass-through dynamics
- Low cash balance versus long-term debt; unknown interest coverage
Key Metrics to Watch
- Net margin trend in next two quarters - determine if income decline is reversing or structural
- Cash position and working capital requirements - resolve the apparent cash adequacy concern
- Operating cash flow sustainability - verify the $144.3M OCF can be maintained post-integration
- Gross/operating margin trend
- Interest coverage (EBIT/interest)
Hawkins Inc. (HWKN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.21x current ratio provides a solid financial cushion.
HWKN Profit Margin, ROE & Profitability Analysis
HWKN vs Materials Sector: How Hawkins Inc. Compares
How Hawkins Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Hawkins Inc. Stock Overvalued? HWKN Valuation Analysis 2026
Based on fundamental analysis, Hawkins Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Hawkins Inc. Balance Sheet: HWKN Debt, Cash & Liquidity
HWKN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Hawkins Inc.'s revenue has grown significantly by 40% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.59 reflects profitable operations.
HWKN Revenue Growth, EPS Growth & YoY Performance
HWKN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $226.2M | $14.3M | $0.69 |
| Q2 2026 | $247.0M | $22.6M | $1.08 |
| Q3 2025 | $208.5M | $14.9M | $0.71 |
| Q2 2025 | $236.5M | $23.2M | $1.10 |
| Q1 2025 | $251.1M | $23.4M | $1.12 |
| Q3 2024 | $208.5M | $10.7M | $0.51 |
| Q2 2024 | $236.5M | $18.0M | $0.86 |
| Q1 2024 | $246.5M | $19.7M | $0.94 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Hawkins Inc. Dividends, Buybacks & Capital Allocation
HWKN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Hawkins Inc. (CIK: 0000046250)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| May 19, 2026 | 8-K | hwkn-20260513.htm | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080554.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080536.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080527.xml | View → |
| May 15, 2026 | 4 | xslF345X06/form4-05152026_080510.xml | View → |
❓ Frequently Asked Questions about HWKN
What is the AI rating for HWKN?
Hawkins Inc. (HWKN) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HWKN's key strengths?
Claude: Strong free cash flow generation of $86.1M with 7.9% FCF margin demonstrates underlying operational capability. Healthy liquidity profile with 2.21x current ratio and conservative debt-to-equity ratio of 0.46x. ChatGPT: Consistent profitability with 12% operating margin and 8.1% net margin. Strong free cash flow and ~100% NI-to-FCF conversion.
What are the risks of investing in HWKN?
Claude: Severe revenue-profit disconnect: 8123% revenue growth versus -3.3% net income decline suggests either undisclosed acquisition integration costs, margin compression, or accounting anomalies requiring clarification. Critically low cash position of $3.9M relative to $244M long-term debt and company size raises working capital concerns in chemical wholesale sector. ChatGPT: Sustainability of extreme reported revenue growth; potential normalization. Margin sensitivity to input chemical prices and pass-through dynamics.
What is HWKN's revenue and growth?
Hawkins Inc. reported revenue of $1.1B.
Does HWKN pay dividends?
Hawkins Inc. pays dividends, with $15.7M distributed to shareholders in the trailing twelve months.
Where can I find HWKN SEC filings?
Official SEC filings for Hawkins Inc. (CIK: 0000046250) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HWKN's EPS?
Hawkins Inc. has a diluted EPS of $3.91.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HWKN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Hawkins Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HWKN stock overvalued or undervalued?
Valuation metrics for HWKN: ROE of 15.3% (sector avg: 14%), net margin of 7.5% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy HWKN stock in 2026?
Our dual AI analysis gives Hawkins Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HWKN's free cash flow?
Hawkins Inc.'s operating cash flow is $144.3M, with capital expenditures of $58.2M. FCF margin is 7.9%.
How does HWKN compare to other Materials stocks?
Vs Materials sector averages: Net margin 7.5% (avg: 10%), ROE 15.3% (avg: 14%), current ratio 2.21 (avg: 1.6).