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NEW YORK (TheStreet) -- Hawkins (HWKN) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate HAWKINS INC (HWKN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HWKN has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, HWKN has a quick ratio of 2.19, which demonstrates the ability of the company to cover short-term liquidity needs.
- HAWKINS INC has improved earnings per share by 18.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, HAWKINS INC increased its bottom line by earning $1.70 versus $1.63 in the prior year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Chemicals industry average. The net income increased by 18.1% when compared to the same quarter one year prior, going from $5.21 million to $6.15 million.
You can view the full analysis from the report here: