Hawkins, Inc. blends, manufactures, and distributes various chemical products. The company operates in two segments, Industrial and Water Treatment. The company was founded in 1938 and is based in Roseville, Minnesota.
HWKN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Hawkins Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Hawkins Inc ranked in the 53th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 23%. As for the metrics that stood out in our discounted cash flow analysis of Hawkins Inc, consider:
The company has produced more trailing twelve month cash flow than merely 20.61% of its sector Basic Materials.
The business' balance sheet reveals debt to be 12% of the company's capital (with equity being the remaining amount). Approximately only 24.59% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
HWKN's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 37.03% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
SSD, SCL, BHP, MTX, and SYNL can be thought of as valuation peers to HWKN, in the sense that they are in the Basic Materials sector and have a similar price forecast based on DCF valuation.
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
In this article we will check out the progression of hedge fund sentiment towards Hawkins, Inc. (NASDAQ:HWKN) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 […]