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 52th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 56.83%. As for the metrics that stood out in our discounted cash flow analysis of Hawkins Inc, consider:
As a business, HWKN is generating more cash flow than merely 23.1% of positive cash flow stocks in the Basic Materials.
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 36.15% of tickers in our DCF set.
Hawkins Inc's effective tax rate, as measured by taxes paid relative to net income, is at 20 -- greater than 82.83% of US stocks with positive free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
GGB, OEC, PAAS, RGLD, and SXT 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.