Hawkins, Inc. (HWKN)
NASDAQMaterialsChemicals - SpecialtySnapshot 2026-09-09
$125.35-1.30%
Close 2026-09-09 · 1-day change
NASDAQMaterialsChemicals - SpecialtySnapshot 2026-09-09
Broken: Primary pillar broken — EPS near $4.82 next fiscal year: EPS $1.40 vs $4.82 target.
Hawkins, Inc. grows revenue about 8% yearly. Profit margins remain stable with EPS expected near $4.82 next fiscal year. The company has a solid market position in specialty chemicals. Free cash flow yield is positive, supporting operations.
The stock is down over 20% from its high and trades at a high PE of 34.4, above peers. Revenue growth could slow below the 7.6% consensus. Margin pressure or weaker demand in specialty chemicals could hurt earnings.
The price is about 24% above our fair value near $109. Analysts expect roughly 7.6% revenue growth. Our view is cautious given the recent selloff and stretched valuation.
Breaks if: EPS falls below $4.50 next fiscal year
Breaks if: YoY revenue growth falls below 7% next fiscal year
Breaks if: PE remains above 34 with slowing growth
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
HWKN represents a durable compounder with a focus on stable growth in its segments. The current thesis state reflects strong recent financial performance, although it has faced some volatility in earnings results.
The market currently prices HWKN at a premium compared to its peers, indicating expectations of continued strong performance. However, there is an expectations gap, suggesting that some investors may not fully believe in the company's ability to maintain this premium.
Management is focused on growing revenue and operating income across all segments, which has shown strong results recently. While the near-term risk of missing earnings remains low, the company has a history of consecutive earnings misses that could affect investor sentiment.
The thesis hinges on management's ability to execute its growth strategy and maintain strong cash flow. Additionally, external factors such as inflation trends and performance of sector bellwethers will be crucial for HWKN's momentum.
In the next 1 to 3 years, HWKN's performance will depend on its execution and broader market conditions. Not investment advice.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The company expanded in Florida, supporting its disciplined M&A strategy. However, the latest earnings report showed a miss, which weakens the overall read.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.