Hawkins Inc. Stock Downgraded (HWKN)

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- Hawkins (Nasdaq: HWKN) has been downgraded by TheStreet Ratings from buy to hold. The company's strongest point has been its expanding profit margins. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • HWKN, with its decline in revenue, slightly underperformed the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • The gross profit margin for HAWKINS INC is rather low; currently it is at 19.13%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 6.01% trails that of the industry average.
  • The share price of HAWKINS INC has not done very well: it is down 5.75% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
  • HAWKINS INC's earnings per share declined by 29.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, HAWKINS INC reported lower earnings of $1.63 versus $2.09 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Chemicals industry. The net income has significantly decreased by 28.0% when compared to the same quarter one year ago, falling from $7.23 million to $5.21 million.

Hawkins, Inc. distributes bulk chemicals, as well as blends, manufactures, and distributes specialty chemicals. The company operates in two segments, Industrial and Water Treatment. Hawkins has a market cap of $394.8 million and is part of the basic materials sector and chemicals industry. Shares are down 3.6% year to date as of the close of trading on Friday.

You can view the full Hawkins Ratings Report or get investment ideas from our investment research center.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more..
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

10 Sectors That Will Profit Big-Time From Oil's Crash

Insider Trading Alert - PMD, EXPO And HWKN Traded By Insiders

Hawkins (HWKN) Upgraded From Hold to Buy

Hawkins (HWKN) Downgraded From Buy to Hold