olivLaw · US equity research
Hawkins, Inc. HWKN
Wholesale-Chemicals & Allied Products · SIC 5160 · Vertical: Wholesale — nondurable goods (SIC 51xx)
Hawkins, Inc. is a supplier of water treatment chemicals, specialty ingredients and industrial chemicals that has moved from bulk distribution toward specialty ingredients. Sales grew 11% in fiscal 2026, and the second quarter of fiscal 2027 brought 12% growth, both supported by acquisitions and organic growth in water treatment.
At the close of 04 Nov 2026, Hawkins, Inc. (HWKN) stock was 155.97 USD (+2.04% on the day), with market capitalisation 3.2 bn USD, P/E 37.9 on diluted EPS of 4.12 USD over the last 12 months, dividend yield 0.49%, beta 0.91, 52-week range 117.67–171.68 USD. Latest reported quarter (Q2 2027): revenue of 313.8 m USD (+11.9% YoY), net income of 27.8 m USD (+22.9% YoY), diluted EPS 1.34 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 79.9
- overbought (≥ 70)
- Bollinger (20, 2)
- 117.79 – 160.55
- in the upper half of the band · %B 0.89 · band width 30.7%
- SMA 50 / 200
- 130.85 / 143.27
- mixed trend
- MACD (12, 26, 9)
- 6.96 / 5.08
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +18.1% | −1.1% | +19.2 pp | — |
| 3 months | +15.3% | −0.5% | +15.7 pp | — |
| 6 months | −6.7% | +4.4% | −11.1 pp | — |
| Year to date | +9.8% | +12.3% | −2.5 pp | — |
| 1 year | +21.4% | +13.5% | +7.9 pp | −1.2% |
| 3 years | +157.5% | +76.4% | +81.1 pp | −2.1% |
| 5 years | +311.6% | +63.7% | +248.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2027 · 27 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 | Q2 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 226.2 m | 245.3 m | 293.3 m | 280.4 m | 244.1 m | 265.9 m | 315.7 m | 313.8 m |
| Cost of revenue | 177.8 m | 193.1 m | 220.9 m | 212.8 m | 193.3 m | 211.7 m | 241.7 m | 237.2 m |
| Gross profit | 48.4 m | 52.2 m | 72.4 m | 67.6 m | 50.8 m | 54.2 m | 74.0 m | 76.6 m |
| SG&A | 27.4 m | 27.7 m | 31.0 m | 33.7 m | 28.3 m | 30.8 m | 35.3 m | 34.7 m |
| Operating income | 21.1 m | 24.6 m | 41.3 m | 33.9 m | 22.6 m | 23.5 m | 38.7 m | 41.9 m |
| Depreciation & amortisation | 10.1 m | 10.6 m | 12.3 m | 13.3 m | 13.4 m | 13.6 m | 13.9 m | 14.3 m |
| Income tax | 5.3 m | 6.1 m | 9.8 m | 8.2 m | 5.3 m | 4.5 m | 9.1 m | 11.7 m |
| Net income | 15.0 m | 16.3 m | 29.2 m | 22.6 m | 14.3 m | 15.5 m | 28.3 m | 27.8 m |
| Diluted EPS | 0.72 | 0.78 ≈ | 1.40 | 1.08 | 0.69 | 0.74 ≈ | 1.35 | 1.34 |
| Operating cash flow | 21.0 m ≈ | 30.8 m | 31.5 m | 39.5 m ≈ | 35.6 m ≈ | 37.7 m | 35.2 m | 40.3 m ≈ |
| Capex | 8.7 m ≈ | 11.1 m | 13.5 m | 10.8 m ≈ | 14.3 m ≈ | 19.6 m | 11.6 m | 10.8 m ≈ |
| Dividends paid | 3.8 m ≈ | 3.8 m | 3.8 m | 4.0 m ≈ | 4.0 m ≈ | 4.0 m | 4.0 m | 4.2 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 92 percentile of its own 36-quarter history (min 5.8, median 15.3, max 44.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 556.3 m | 540.2 m | 596.9 m | 774.5 m | 935.1 m | 919.2 m | 974.4 m | 1.1 bn |
| Revenue YoY | +10.3% | −2.9% | +10.5% | +29.8% | +20.7% | −1.7% | +6.0% | +11.2% |
| Net income | 24.4 m | 28.4 m | 41.0 m | 51.5 m | 60.0 m | 75.4 m | 84.3 m | 81.5 m |
| Net income YoY | unavailable | +16.1% | +44.5% | +25.8% | +16.5% | +25.5% | +11.9% | −3.3% |
| Diluted EPS | 1.14 | 1.33 | 1.93 | 2.44 | 2.86 | 3.59 | 4.03 | 3.91 |
| Diluted EPS YoY | unavailable | +16.7% | +45.1% | +26.4% | +17.2% | +25.5% | +12.3% | −3.0% |
| net % | 4.4% | 5.3% | 6.9% | 6.7% | 6.4% | 8.2% | 8.7% | 7.5% |
| Free cash flow | 35.4 m | 34.4 m | 23.0 m | 14.3 m | 29.1 m | 119.3 m | 70.0 m | 86.1 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 29 Mar 2026
- Cash
- 3.9 m USD
- Financial debt
- 244.0 m USD
- Net debt
- 240.1 m USD
- Equity
- 534.0 m USD
- Total assets
- 986.3 m USD
- Debt / equity
- 0.46x
- Current ratio
- 2.21x
- ROE
- 16.4%
- ROA
- 9.3%
- FCF margin
- 7.9%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 596.9 m | 774.5 m | 935.1 m | 919.2 m | 974.4 m | 1.1 bn | SEC (XBRL)· 13 May 2026verified |
| Cost of revenue | 473.1 m | 628.0 m | 770.0 m | 725.5 m | 748.9 m | 838.6 m | SEC (XBRL)· 13 May 2026verified |
| Gross profit | 123.8 m | 146.5 m | 165.1 m | 193.6 m | 225.5 m | 245.1 m | SEC (XBRL)· 13 May 2026verified |
| SG&A | 67.9 m | 75.3 m | 77.0 m | 89.6 m | 106.4 m | 123.8 m | SEC (XBRL)· 13 May 2026verified |
| Operating income | 55.9 m | 71.2 m | 88.2 m | 104.0 m | 119.2 m | 121.3 m | SEC (XBRL)· 13 May 2026verified |
| Depreciation & amortisation | 22.7 m | 24.1 m | 27.4 m | 31.8 m | 39.9 m | 52.5 m | SEC (XBRL)· 13 May 2026verified |
| EBITDA | 78.5 m ≈ | 95.3 m ≈ | 115.6 m ≈ | 135.8 m ≈ | 159.1 m ≈ | 173.8 m ≈ | SEC (XBRL)· 13 May 2026derived |
| Pre-tax income | 55.9 m | 70.0 m | 82.6 m | 101.1 m | 114.4 m | 109.3 m | SEC (XBRL)· 13 May 2026verified |
| Income tax | 14.9 m | 18.4 m | 22.5 m | 25.8 m | 30.0 m | 27.8 m | SEC (XBRL)· 13 May 2026verified |
| Net income | 41.0 m | 51.5 m | 60.0 m | 75.4 m | 84.3 m | 81.5 m | SEC (XBRL)· 13 May 2026verified |
| Diluted EPS | 1.93 | 2.44 | 2.86 | 3.59 | 4.03 | 3.91 | SEC (XBRL)· 13 May 2026verified |
| Weighted average diluted shares | 21.3 m | 21.1 m | 21.0 m | 21.0 m | 20.9 m | 20.9 m | SEC (XBRL)· 13 May 2026verified |
| Dividend per share | 0.47 | 0.52 | 0.57 | 0.63 | 0.70 | 0.75 | SEC (XBRL)· 13 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.0 m | 3.5 m | 7.6 m | 7.2 m | 5.1 m | 3.9 m | SEC (XBRL)· 13 May 2026verified |
| Receivables | 90.6 m | 122.8 m | 129.3 m | 114.5 m | 131.8 m | 139.8 m | SEC (XBRL)· 13 May 2026verified |
| Inventories | 63.9 m | 95.0 m | 88.8 m | 74.6 m | 83.5 m | 78.2 m | SEC (XBRL)· 13 May 2026verified |
| Current assets | 163.0 m | 227.7 m | 232.0 m | 202.8 m | 230.7 m | 231.5 m | SEC (XBRL)· 13 May 2026verified |
| Property, plant & equipment, net | 144.6 m | 161.8 m | 185.8 m | 208.9 m | 225.3 m | 266.3 m | SEC (XBRL)· 13 May 2026verified |
| Goodwill | 70.7 m | 77.4 m | 77.4 m | 103.4 m | 135.4 m | 223.0 m | SEC (XBRL)· 13 May 2026verified |
| Intangibles (excl. goodwill) | 76.4 m | 80.2 m | 73.1 m | 116.6 m | 150.1 m | 232.9 m | SEC (XBRL)· 13 May 2026verified |
| Total assets | 472.6 m | 567.3 m | 590.5 m | 657.9 m | 770.0 m | 986.3 m | SEC (XBRL)· 13 May 2026verified |
| Accounts payable | 37.3 m | 66.7 m | 53.7 m | 56.4 m | 61.2 m | 59.8 m | SEC (XBRL)· 13 May 2026verified |
| Short-term debt | 9.9 m | 9.9 m | 9.9 m | 9.9 m | 9.9 m | — | SEC (XBRL)· 14 May 2025verified |
| Long-term debt | 88.8 m | 115.6 m | 101.7 m | 88.8 m | 149.0 m | 244.0 m | SEC (XBRL)· 13 May 2026verified |
| Current liabilities | 70.5 m | 101.5 m | 90.9 m | 103.3 m | 97.2 m | 104.8 m | SEC (XBRL)· 13 May 2026verified |
| Total liabilities | 207.3 m | 264.7 m | 240.5 m | 251.9 m | 309.8 m | 452.3 m | SEC (XBRL)· 13 May 2026verified |
| Equity | 265.2 m † | 302.6 m † | 350.0 m † | 406.0 m † | 460.3 m † | 534.0 m † | SEC (XBRL)· 13 May 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 43.8 m | 42.8 m | 77.4 m | 159.5 m | 111.1 m | 144.3 m | SEC (XBRL)· 13 May 2026verified |
| Capex | 20.8 m | 28.5 m | 48.3 m | 40.2 m | 41.1 m | 58.2 m | SEC (XBRL)· 13 May 2026verified |
| Free cash flow | 23.0 m ≈ | 14.3 m ≈ | 29.1 m ≈ | 119.3 m ≈ | 70.0 m ≈ | 86.1 m ≈ | SEC (XBRL)· 13 May 2026derived |
| Investing cash flow | -71.4 m | -49.8 m | -41.2 m | -122.5 m | -128.0 m | -224.1 m | SEC (XBRL)· 13 May 2026verified |
| Financing cash flow | 26.4 m | 7.4 m | -32.1 m | -37.4 m | 14.8 m | 78.6 m | SEC (XBRL)· 13 May 2026verified |
| Dividends paid | 10.0 m | 11.1 m | 12.0 m | 13.2 m | 14.6 m | 15.7 m | SEC (XBRL)· 13 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 53 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 3.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation19
- Returns44
- Quality87
- Balance sheet68
- Growth58
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 41.77 – 137.84 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDA48.80 – 109.74 (Mid 89.88)17 companies used · median multiple 11.5x · quartiles 6.8x – 13.8xASH, CAH, CAPL, CHEF, COR, DIT, DPZ, HLF, MCK, MMLP, NUS, SEB, SYY, UNFI, USFD, UVV, VSTS
- Peers: P/E41.77 – 137.84 (Mid 79.61)19 companies used · median multiple 19.3x · quartiles 10.1x – 33.5xANDE, CAH, CAPL, CENT, CHEF, COR, DIT, DPZ, EDUC, GLP, HLF, MCK, PFGC, RAVE, SEB, SYY, UNFI, USFD, WEYS
- Dividend discount (DDM)outside the aggregate9.86 – 13.25 (Mid 11.31)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 53/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 11.7% | 80 (vs peers) | 11% |
| Net margin · Quality | 7.5% | 87 (vs peers) | 7% |
| FCF conversion · Quality | 107.8% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 5.0% | 42 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | 11.0% | 73 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 1.2x | 56 (vs peers) | 11% |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.3x | 100 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 37.9x | 19 (vs peers) | 11% |
| EV/EBITDA · Valuation | 19.1x | 6 (vs peers) | 11% |
| FCF yield · Valuation | 2.9% | 36 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 0.5% | 7 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | 17.4% | 100 (on a fixed band) | 4% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet68/100 · 2/3 factors with a value
- Growth58/100 · 2/2 factors with a value
- Quality87/100 · 3/3 factors with a value
- Returns44/100 · 2/2 factors with a value
- Valuation19/100 · 3/3 factors with a value
Memo
HAWKINS, INC. (HWKN). Latest full fiscal year: 2026; data up to 2026-09-27.
Figures computed from the financial statements: revenue 1.1 bn USD in 2026; YoY growth 11.2%; net margin 7.5%; ROE 16.0%; net debt/EBITDA 1.2x.
The estimated value range is 45.28–123.79 USD per share (median of 2 methods, agreement: same basis (multiples on one peer group, not independent confirmations)); assumptions are illustrative. Against the central value of 84.75 USD, the price of 155.97 USD leaves a potential of -45.7% (value / price − 1) and a margin of safety of -84.0% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 53/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 11.7%
- Net margin: 7.5%
- FCF conversion: 107.8%
- EPS CAGR 3Y: 11.0%
- Current ratio: 2.3x
- Payout ratio (FCF): 17.4%
What contradicts it
- P/E (TTM): 37.9x
- EV/EBITDA: 19.1x
- Shareholder yield (distributions): 0.5%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Interest coverage.
Versus the vertical median
Wholesale — nondurable goods (SIC 51xx) · same major group (2-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MCKMcKESSON CORPORATION | 123.5 bn | 27.5 | — | 1.1% | +12.4% | +21% / +127% |
| CORCencora, Inc. | 67.6 bn | 26.3 | 104.3% | 0.8% | +9.3% | −4% / +74% |
| CAHCardinal Health, Inc. | 60.9 bn | 36.2 | — | 0.7% | +14.2% | +23% / +145% |
| SYYSysco Corporation | 37.9 bn | 20.5 | 59.1% | 2.1% | +3.9% | +1% / +7% |
| USFDUs Foods Holding Corp. | 23.8 bn | 33.8 | 16.4% | 1.8% | +4.1% | +40% / +151% |
| PFGCPerformance Food Group Company | 17.3 bn | 43.7 | 8.2% | 0.6% | +7.2% | +13% / +68% |
| DPZDomino’s Pizza, Inc. | 11.2 bn | 19.3 | — | 11.9% | +5.0% | −19% / −13% |
| CHEFChefs’ Warehouse, Inc. | 4.6 bn | 46.5 | 16.2% | 2.3% | +9.4% | +74% / +297% |
| ASHAshland Inc. | 3.5 bn | 126.3 | 2.8% | 2.8% | −13.7% | +44% / −4% |
| SEBSeaboard Corporation | 3.3 bn | 5.9 | 10.7% | 5.3% | +7.1% | −26% / −2% |
| HWKNHawkins, Inc. | 3.2 bn | 37.9 | 16.0% | 7.5% | +11.2% | +21% / +158% |
| UNFIUnited Natural Foods, Inc. | 2.9 bn | 36.0 | 5.3% | 0.3% | −2.0% | +29% / +232% |
| VSTSVestis Corp | 2.0 bn | — | -0.6% | -0.2% | −2.5% | +128% / −19% |
| ANDEAndersons, Inc. | 1.9 bn | 9.3 | 16.1% | 1.8% | −2.2% | +7% / +11% |
| HLFHerbalife Ltd. | 1.6 bn | 9.1 | — | 3.4% | +0.9% | +20% / +19% |
| GLPGlobal Partners LP | 1.5 bn | 7.6 | — | 0.9% | +8.1% | −1% / +19% |
| UVVUniversal Corporation | 990.8 m | — | -0.2% | -0.1% | −1.3% | −25% / −29% |
| CAPLCrossamerica Partners LP | 773.8 m | 16.1 | — | 1.2% | −10.6% | −1% / −15% |
| WEYSWeyco Group, Inc. | 616.9 m | 17.8 | 13.8% | 12.4% | −4.9% | +116% / +119% |
| MGPIMgp Ingredients, Inc. | 364.2 m | — | -34.5% | -51.4% | −23.8% | −25% / −80% |
| NUSNu Skin Enterprises, Inc. | 242.9 m | — | -32.5% | -15.7% | −14.3% | −50% / −71% |
| PTLEPTL Limited | 121.4 m | — | -24.8% | -1.6% | −27.0% | −30% / unavailable |
| BANLCbl International Limited | 80.0 m | — | -14.0% | -0.6% | −9.1% | −48% / −86% |
| MMLPMartin Midstream Partners L.P. | 77.1 m | — | — | -1.4% | +1.2% | −25% / −24% |
| DITAmcon Distributing Co | 59.4 m | 33.1 | 1.6% | 0.1% | +3.9% | −19% / −48% |
1- and 3-year price returns: for HWKN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 92.85 Total return -40% · Per year -40% | 164.11 Total return 6% · Per year 6% | 247.14 Total return 59% · Per year 59% |
| 3 years | 91.09 Total return -40% · Per year -16% | 181.06 Total return 18% · Per year 6% | 299.25 Total return 94% · Per year 25% |
| 5 years | 89.37 Total return -41% · Per year -10% | 199.77 Total return 31% · Per year 6% | 362.34 Total return 136% · Per year 19% |
- Exit P/E± 45.27
- Net margin± 31.69
- Annual revenue growth± 25.88
- Annual dilution± 2.66
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Hawkins, Inc. is a supplier of water treatment chemicals, specialty ingredients and industrial chemicals that has moved from bulk distribution toward specialty ingredients. Sales grew 11% in fiscal 2026 1, and the second quarter of fiscal 2027 brought 12% growth 3, both supported by acquisitions and organic growth in water treatment.
SWOT
Strengths
- The company has its own distribution network and employees who provide technical service directly to customers 1.
- Sales growth has rested on volumes and acquisitions, and operating cash flow rose in fiscal 2026 13.
- The customer base is diversified, and no single customer reached the 10% threshold in the period reviewed 1.
Weaknesses
Opportunities
- Geographic expansion into Texas and Florida could bring new municipal and industrial customers 23.
- Higher-margin products and specialty ingredients could lift profitability if their share of sales grows 13.
- Acquisitions of small regional distributors could consolidate the market if integration is effective 12.
Risks
- Competitive price pressurehigh
Larger competitors could reduce prices, which could affect the company's margins and profitability 1.
- Raw material volatilityhigh
Raw material prices can rise quickly and the company does not hedge with derivatives, which can affect margins 1.
- Product liability and recallsmedium
Claims or recalls could generate unplanned costs and damage the company's reputation 1.
- Environmental and operational hazardsmedium
Chemical accidents, spills and environmental problems could lead to remediation costs and negative community reaction 1.
- Debt and acquisition integrationlow
Acquisitions may need extra financing, and their integration is not assured 13.
Investment thesis
What would need to be true (bull case)
- If organic growth in water treatment continues and margins improve, quarterly results could support wider profitability.
- Recent acquisitions and the Texas expansion could add recurring revenue and cost synergies.
- Debt reduction and share repurchases could strengthen the balance sheet if cash flow stays strong.
What would break the thesis
- Price pressure in the food and industrial segments could limit margin expansion.
- Interest costs and higher debt could reduce financial flexibility if sales slow.
- Dependence on raw material volatility and weather could make results uneven between quarters.
What to watch
- Gross margin trend in Water Treatment after the Eagle Labs acquisitionQ3 2027
- Price pressure in the Food and Health Sciences segmentQ3 2027
- Effective tax rate for full fiscal 2027, guided at 25% to 27%next 10-K
- Development of debt and leverage after second-quarter repaymentsQ3 2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Hawkins formulates, manufactures, distributes and blends products for customers across three segments: Water Treatment, Food and Health Sciences, and Industrial Solutions 1. The company describes its value base as close service, product quality, tailored applications and its employees, and part of its deliveries run on its own routes where employees act as drivers, salespeople and technicians 1. No customer accounted for 10% or more of total sales in fiscal 2024 through 2026 1.
Segments
Water Treatment
This is the largest segment by sales in fiscal 2026, with growth driven mainly by acquisitions and by better pricing on some products 1. It operates from 53 warehouses in 28 states, mostly in the eastern United States 1, and its sales rose 16% in the second quarter of fiscal 2027 2.
Food and Health Sciences
The segment supplies ingredients for the nutrition, food, pharmaceutical and agricultural markets, including vitamins, amino acids, minerals and food or pharmaceutical grade salts 1. Sales dipped slightly in fiscal 2026 because of competitive price pressure, but grew again in the second quarter of fiscal 2027 12.
Market context
The company operates in a competitive industry with many producers and distributors, and many competitors are larger with greater financial resources 1. Demand in water treatment is steady but seasonal, with higher sales between April and September 1, while industrial demand depends on economic cycles 1.
Trends
- Acquisitions in water treatmenttailwind
The company completed six acquisitions in fiscal 2026 and continued in fiscal 2027 with Symonds and Eagle Labs 123. If integration succeeds, the expansion into Texas and Florida could add revenue and margin.
- Raw material pricesheadwind
Raw material costs can rise or fall quickly, and the company does not use hedging instruments, which can affect margins in periods of rising prices 12.
- Tariffs and fuel costsmixed
Tariffs led to tariff refunds on some products in the second quarter of fiscal 2027, but higher fuel costs were not fully passed on to customers through freight charges 3.
- Debt and deleveragingmixed
Debt rose in fiscal 2026 to fund acquisitions, and in the second quarter of fiscal 2027 the company reduced debt and repurchased stock 13.
Competitive position
Hawkins competes on quality, service and competitive pricing, but many rivals are larger and can offer broader product ranges or wider geographic reach 1. The company relies on long-standing supplier relationships to obtain products when supply is limited 1.
- Regional chemical producers and distributors
Competitors offering products equivalent to most of the Hawkins range, often with broader reach 1.
- Major United States chemical producers
Suppliers of the company's raw materials that could also become competitors through downstream integration 1.
- Water treatment product distributors
Smaller or regional firms, some of which Hawkins has acquired in recent years 12.
- Food and pharmaceutical ingredient producers
Compete on price in the Food and Health Sciences segment, where price pressure reduced sales 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Hawkins CFO Purchases 1,290 Shares Worth $153,510Yahoo Finance — News · 09 Sept 2026 · EN
The latest news item in our archive is from 09 Sept 2026; the newest SEC filing is from 26 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report26 Oct 2026
- Current report26 Oct 2026Results of operations
- Current report14 Aug 2026Departure or appointment of officers
- Current report03 Aug 2026Shareholder vote
- Quarterly report29 Jul 2026
- Current report29 Jul 2026Results of operations
- Proxy statement18 Jun 2026
- Current report19 May 2026Departure or appointment of officers
- Annual report13 May 2026
- Current report13 May 2026Results of operations
Sources
- [1] Form 10-K, fiscal year ended 2026-03-29 · SEC / Hawkins, Inc. · 13 May 2026
- [2] Form 10-Q, quarter ended 2026-09-27 · SEC / Hawkins, Inc. · 26 Oct 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Hawkins, Inc. · 26 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.