Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>HWKN reported fiscal second quarter (September) results where lower selling prices for industrial chemicals led to sales missing our estimates. </li>
<li>The lack of sales compared to our forecast resulted in HWKN slightly missing our EPS estimate. The offsetting factor was higher gross margin as a result of lower feedstock costs. </li>
<li>We are making changes to our earnings model for fiscal 2025 and 2026. The biggest factor is the assumption the lower ASPs in the industrial segment would continue.</li>
</ul>


HWKN reported fiscal second quarter (September) results where lower selling prices for industrial chemicals led to sales missing our estimates. 
The lack of sales compared to our forecast resulted in HWKN slightly missing our EPS estimate. The offsetting factor was higher gross margin as a result of lower feedstock costs. 
We are making changes to our earnings model for fiscal 2025 and 2026. The biggest factor is the assumption the lower ASPs in the industrial segment would continue.


<ul>
<li>HWKN has grown its water treatment business through acquisition leading to the segment becoming larger than the industrial business. The water treatment segment should become the largest sales generator.</li>
<li>We believe this growth through inorganic means has resulted in HWKN’s stock trading at a premium to the market and to HWKN’s historic levels. </li>
<li>The seasonality the water treatment segment experiences should result in HWKN’s overall gross margin declining in the second half of fiscal 2025. </li>
</ul>


HWKN has grown its water treatment business through acquisition leading to the segment becoming larger than the industrial business. The water treatment segment should become the largest sales generator.
We believe this growth through inorganic means has resulted in HWKN’s stock trading at a premium to the market and to HWKN’s historic levels. 
The seasonality the water treatment segment experiences should result in HWKN’s overall gross margin declining in the second half of fiscal 2025. 


External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

<ul><li>HWKN is overvalued and presents a short opportunity due to likely earnings decline</li><li>Stock price has continued to rise despite declining earnings, likely due to lack of coverage and transparency</li><li>Shorting HWKN presents an opportunity for short-term profit as stock price does not reflect true value</li></ul><p><em>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.</em></p>

HWKN is overvalued and presents a short opportunity due to likely earnings declineStock price has continued to rise despite declining earnings, likely due to lack of coverage and transparencyShorting HWKN presents an opportunity for short-term profit as stock price does not reflect true valueThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

<ul>
<li>HWKN reported fiscal first quarter (June) where the water treatment business surpassed the industrial segment in sales and helped HWKN exceed our earnings estimate. </li>
<li>The water treatment business has grown through acquisition to a point where the segment has become a dominant portion of HWKN’s sales. </li>
<li>A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $122 from $96.</li>
</ul>


HWKN reported fiscal first quarter (June) where the water treatment business surpassed the industrial segment in sales and helped HWKN exceed our earnings estimate. 
The water treatment business has grown through acquisition to a point where the segment has become a dominant portion of HWKN’s sales. 
A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $122 from $96.


HWKN: Rising Gross Margin Profile, PT to $122

<ul>
<li>HWKN is entering fiscal 2025 (March) with a business model that is changing from its historical norms. The revenue mix is changing in fiscal 2025.</li>
<li>This change should lead to HWKN receiving a higher valuation in the market than it has historically received since the water treatment business is very different from HWKN’s industrial business</li>
<li>A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $96 from $74</li>
</ul>


HWKN is entering fiscal 2025 (March) with a business model that is changing from its historical norms. The revenue mix is changing in fiscal 2025.
This change should lead to HWKN receiving a higher valuation in the market than it has historically received since the water treatment business is very different from HWKN’s industrial business
A higher earnings profile for HWKN and earnings continuing to grow in fiscals 2025 and 2026 leads us to raise our price target to $96 from $74


HWKN: Sales Mix Change Is a PT Change, Now $96

United States

Hawkins, Inc. formulates, manufactures, blends, distributes, and sells reagent grade laboratory chemicals and industrial chemicals.  The Company also provides water treatment equipment and chemicals to commercial and industrial entities. Hawkins services customers located in the Midwest United States.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hawkins Inc (HWKN US)

HWKN: No Treat of a Season

The second half of the fiscal year is seasonally the slowest period giving chance for opportunistic buying once valuation sobers to the cyclicality...

BWS Financial Inc

HWKN: Downgrading with Seasonal Peak

HWKN report FYQ2 (September) results, which are seasonally peak for the FY. Given the rise in the stock price and the valuation HWKN is now...

BWS Financial Inc

Hawkins Inc (HWKN) - Monday, Jul 1, 2024

HWKN is overvalued and presents a short opportunity due to likely earnings decline. Stock price has continued to rise despite declining earnings,...

Value Investors Club

HWKN: Rising Gross Margin Profile, PT to $122

Water treatment is now the dominant source of sales allowing HWKN to generate higher gross sales than previously expected. HWKN's management is...

BWS Financial Inc

HWKN: Sales Mix Change Is a PT Change, Now $96

Entering fiscal 2025 (March), HWKN's sales mix shifts to water treatment as a majority, which carries a higher gross margin and steadier state of...

BWS Financial Inc

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)