Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty chemical small-cap Hawkins (Nasdaq: HWKN ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Hawkins' business and see what CAPS investors are saying about the stock right now.
Hawkins facts
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Headquarters (Founded)
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Minneapolis (1938)
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Market Cap
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$232 million
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Industry
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Chemicals
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Trailing-12-Month Revenue
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$281.9 million
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Management
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CEO John Hawkins (since 2000)
CFO Kathleen Pepski (since 2008)
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Return on Equity (Average, Past 3 Years)
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16.4%
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Cash/Debt
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$36.8 million / $0
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Dividend Yield
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2.5%
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Other Highly Rated Chemical Stocks
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Dow Chemical (NYSE: DOW )
DuPont (NYSE: DD )
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CAPS Members Bullish on HWKN Also Bullish on
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American Oriental Bioengineering (NYSE: AOB )
General Electric (NYSE: GE )
Johnson & Johnson (NYSE: JNJ )
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CAPS Members Bearish on HWKN Also Bearish on
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Costco (Nasdaq: COST )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 98% of the 204 members who have rated Hawkins believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars slbutton and rknapton.
Just last month, slbutton tapped the stock as a rather smart way to think small:
The company is small and boring. It has a good balance sheet, management is aligned with shareholders' interests, and there is reliable demand for the company's products. Under ten times trailing earnings, the price gives value investors a good margin of safety, while the healthy dividend only sweetens the deal.
In a pitch from two weeks ago, rkapton also pushed Fools to start hawking Hawkins. Here's an excerpt:
[B]asically you have a small, but stable, long term slow growth company, and it is trading at an attractive valuation of just 9 times trailing earnings and 10 times forward estimates. They also have a cash hoard of $37 million built up, along with no debt, making the company a further bargain yet. The stock pays out a 2.5% dividend, which is not in jeopardy at all considering it is a small fraction of their earnings. A ten year chart is interesting to look at to see how slow and steady the stock has been up until this year.
What do you think about Hawkins, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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