DCF Tool

HWKN

Hawkins Inc – Pesticide and Other Agricultural Chemical Manufacturing
Hawkins, Inc. distributes, blends and manufactures bulk and specialty chemicals and other health and nutrition products for its customers in a wide variety of industries. Headquartered in Roseville, Minnesota, and with 41 facilities in 19 states, the Company creates value for its customers through superb customer service and support, quality products and personalized applications.
Analysis Results
Intrinsic Value $193.32
Latest Price $37.04
Relative Value 81% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 21.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 21.5%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2023 97.1 91.3
2024 118 104
2025 143 119
2026 174 136
2027 212 156
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4990 million. This corresponds to a present value of 3450 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 607 million. Adding in the terminal value gives a total present value of 4060 million.

There are presently 21.0 million outstanding shares, so the intrinsic value per share is 193.32.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 227,738,000
Current Cash 3,496,000
Current Liabilities 101,466,000
Current Debt 9,913,000
Non-Cash Working Capital (NCWC) 132,689,000
Change in NCWC 33,235,000
EBIT 71,194,000
Tax Provision 18,437,000
Depreciation and Amortization 24,129,000
Capital Expenditure -28,512,000
Unlevered Free Cash Flow 81,288,890
Current Assets 163,007,000
Current Cash 2,998,000
Current Liabilities 70,462,000
Current Debt 9,907,000
Non-Cash Working Capital (NCWC) 99,454,000
Change in NCWC 25,013,000
EBIT 55,878,000
Tax Provision 14,871,000
Depreciation and Amortization 22,669,000
Capital Expenditure -20,794,000
Unlevered Free Cash Flow 67,887,810
Current Assets 131,031,000
Current Cash 4,277,000
Current Liabilities 62,220,000
Current Debt 9,907,000
Non-Cash Working Capital (NCWC) 74,441,000
Change in NCWC -10,280,000
EBIT 41,671,000
Tax Provision 10,589,000
Depreciation and Amortization 21,584,000
Capital Expenditure -24,549,000
Unlevered Free Cash Flow 17,099,010
Current Assets 139,409,000
Current Cash 9,199,000
Current Liabilities 55,396,000
Current Debt 9,907,000
Non-Cash Working Capital (NCWC) 84,721,000
Change in NCWC 5,432,000
EBIT 36,818,000
Tax Provision 9,097,000
Depreciation and Amortization 21,756,000
Capital Expenditure -12,618,000
Unlevered Free Cash Flow 41,398,935
Current Assets 134,982,000
Current Cash 4,990,000
Current Liabilities 60,567,000
Current Debt 9,864,000
Non-Cash Working Capital (NCWC) 79,289,000
Change in NCWC 12,914,000
EBIT 27,357,000
Tax Provision -5,899,000
Depreciation and Amortization 22,390,000
Capital Expenditure -19,703,000
Unlevered Free Cash Flow 42,958,000
Current Assets 120,919,000
Current Cash 6,861,000
Current Liabilities 55,672,000
Current Debt 7,989,000
Non-Cash Working Capital (NCWC) 66,375,000
Change in NCWC 3,377,000
EBIT 38,692,000
Tax Provision 13,493,000
Depreciation and Amortization 20,875,000
Capital Expenditure -21,616,000
Unlevered Free Cash Flow 26,845,333
Current Assets 137,288,000
Current Cash 20,014,000
Current Liabilities 59,765,000
Current Debt 5,489,000
Non-Cash Working Capital (NCWC) 62,998,000
Change in NCWC 18,125,000
EBIT 31,171,000
Tax Provision 12,223,000
Depreciation and Amortization 15,511,000
Capital Expenditure -24,183,000
Unlevered Free Cash Flow 28,076,969
Current Assets 114,340,000
Current Cash 33,124,000
Current Liabilities 36,343,000
Current Debt 0
Non-Cash Working Capital (NCWC) 44,873,000
Change in NCWC 13,404,000
EBIT 30,416,000
Tax Provision 11,240,000
Depreciation and Amortization 13,015,000
Capital Expenditure -14,552,000
Unlevered Free Cash Flow 31,057,025
Current Assets 114,627,000
Current Cash 47,329,000
Current Liabilities 35,829,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,469,000
Change in NCWC -147,000
EBIT 28,090,000
Tax Provision 9,967,000
Depreciation and Amortization 12,605,000
Capital Expenditure -12,261,000
Unlevered Free Cash Flow 18,309,699
Current Assets 111,081,000
Current Cash 44,340,000
Current Liabilities 35,125,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,616,000
Change in NCWC -2,174,000
EBIT 32,540,000
Tax Provision 8,306,000
Depreciation and Amortization 10,248,000
Capital Expenditure -26,660,000
Unlevered Free Cash Flow 3,319,025

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.