Hawkins (HWKN) drew investor attention after reporting first quarter results on July 29, 2026, along with a higher quarterly dividend and an update on its long running share repurchase program.
See our latest analysis for Hawkins.
Hawkins shares have pulled back recently, with a 90 day share price return that declined 19.07% and a year to date share price return that declined 6.88%. At the same time, the 3 year total shareholder return is up 171% and the 5 year total shareholder return is up 281.58%. This combination points to long term gains but fading shorter term momentum around the latest earnings, dividend increase and ongoing buybacks.
If Hawkins’s mix of income and buybacks has your attention, it may be a good moment to see what else is out there and uncover 22 top founder-led companies
Bulls point to Hawkins’s long run of total returns and shareholder payouts. Bears focus on the recent share price pullback and slightly softer earnings. Which side do the current valuation numbers lean toward next?
Price-to-Earnings of 35x for Hawkins: Is it justified?
Hawkins is currently trading on a P/E of 35x, which sits above several reference points and gives investors a clear valuation signal to weigh against the recent share price pullback.
The P/E ratio compares a company’s share price with its earnings per share. For a business like Hawkins with established operations across water treatment, food and health sciences, and industrial solutions, the P/E often reflects what the market is willing to pay today for each dollar of current earnings.
According to the data, Hawkins is described as expensive on a P/E basis. Its 35x P/E is higher than the peer average of 25.3x and above the US Chemicals industry average of 27x. It is also higher than the estimated fair P/E of 17.7x that the SWS fair ratio model suggests could be a more reasonable level for the company.
This gap between the current 35x P/E and the 17.7x fair P/E is large. It points to Hawkins trading on a richer multiple than both peers and the modelled fair ratio. This is something investors may factor in alongside the company’s earnings track record, forecast 11.32% yearly earnings growth, and discounted cash flow assessment that currently puts the share price 6.5% below fair value.
Explore the SWS fair ratio for Hawkins
Result: Price-to-Earnings of 35x (OVERVALUED)
However, Hawkins still carries risks if earnings growth slows, or if the recent 1 year total return decline of 21.73% reflects deeper investor concerns.
Find out about the key risks to this Hawkins narrative.
Another View on Hawkins using the SWS DCF model
The P/E points to Hawkins trading on a rich multiple, yet the SWS DCF model tells a different story. At a share price of $135.29, the stock is described as trading 6.5% below an estimated future cash flow value of $144.68, which flags a possible discount rather than a premium.
This creates a split picture for readers. One lens focuses on an expensive 35x P/E; the other suggests some undervaluation based on projected cash flows. Which signal matters more for you, the earnings multiple today or the cash flows that the DCF model prices in for tomorrow?
Look into how the SWS DCF model arrives at its fair value.
Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hawkins for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 51 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.
Next Steps
With Hawkins sending mixed signals on valuation, earnings and shareholder returns, it makes sense to move quickly and review the full picture for yourself. To see both the potential upsides and the areas investors are cautious about in one place, start with the 3 key rewards and 1 important warning sign
Looking for more investment ideas beyond Hawkins?
If Hawkins has sharpened your focus on valuation and income, do not stop here. Use the Simply Wall St screener to uncover fresh ideas that fit your style.
- Target reliable income opportunities by scanning companies that appear in the 8 dividend fortresses.
- Hunt for potential value candidates by reviewing the 51 high quality undervalued stocks.
- Prioritise resilience by focusing on companies highlighted in the 79 resilient stocks with low risk scores.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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