Hawkins, Inc. — Cyborg Score 7/10

Strong
Specialty Chemicals & Water Treatment

Strategic Profile

Founded in 1938, Hawkins has evolved from a regional chemical distributor into a national leader in water treatment, industrial chemicals, and specialty ingredients. The company pursues growth through strategic acquisitions and geographic expansion, with recent acquisitions including StillWaters Technology, strengthening its southern presence.

Cyborg Score Rationale

Hawkins demonstrates solid fundamentals with $974M in revenue, 1,100 employees, and $2.8B market cap. The company shows operational strength with growing institutional ownership (69.71%), consistent dividends since 1985, and strategic acquisition activity. Recent quarter results slightly missed analyst expectations, suggesting some execution challenges.

Top Insights

  • Recent Q4 FY2025 EPS of $0.72 missed consensus of $0.75, with revenue of $244M vs. $252.5M expected, indicating softer near-term demand
  • Strong institutional ownership at 69.71% signals confidence; insider buying by director in February 2026 shows management conviction
  • Stock near all-time highs (Oct 2025: $186.15) with current P/E of ~34x suggests premium valuation relative to historical averages
  • Operates 64 facilities across 28 states with diversified customer base across municipal, industrial, and food/health sectors

Named Competitors

  • Innospec (IOSP) — Specialty chemicals for fuel, personal care, and healthcare
  • H.B. Fuller (FUL) — Adhesives, sealants, and specialty chemicals manufacturer
  • Ashland (ASH) — Specialty chemicals and additives for multiple industries

Recent Developments

  • (January 2026) Q4 FY2025 earnings miss with $0.72 EPS vs. $0.75 consensus; revenue $244M vs. $252.5M expected
  • (February 2026) Director insider buying: James Faulconbridge purchased 1,500 shares at $129.29 avg, raising holdings to 50,907 shares
  • (2025) Named America's Greatest Company by Newsweek; received Great Place to Work Certification and Fortune Top Workplaces recognition
  • (2025) Completed acquisition of StillWaters Technology in Alabama to accelerate southern US expansion

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