F

Hawkins, Inc. — Earnings Quality Grade F

HWKN · Basic Materials

Major red flags

Revenue
$974M
2025
Net Income
$84M
2025
Gross Margin
23.1%
Free Cash Flow
$70M
01

Screening Summary

14
Passed
1
Watch
2
Failed
-2.58
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 49 days, change +4 days YoY

!
A2AR vs Revenue Growth

AR growth 15.1% exceeds revenue growth 6.0%

A3Revenue vs CFFO

Revenue 6.0%, CFFO -30.3%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory 11.9% vs COGS 3.2%. Normal

B2CapEx vs Revenue

CapEx growth 2.4% vs revenue 6.0%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 47.2%. Normal

B4Gross Margin

Gross margin 23.1%, change +2.1pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 1.32. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 0.83

C3Accruals Ratio

Accruals ratio = -3.5%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 3% of debt $0.2B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.3B = 62% of equity. Over 50%

D2Leverage

Debt/EBITDA = 1.0x. Healthy

D3Soft Asset Growth

Other assets -24.1% vs revenue 6.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 30% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.58 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.58
-4.0 Clean-2.22 Grey-1.78 Danger0
1.086
DSRI
AR growing faster than revenue?
0.91
GMI
Gross margin declining?
1.095
AQI
Asset quality deteriorating?
1.06
SGI
Revenue growth rate
0.879
DEPI
Depreciation slowing?
1.12
SGAI
SG&A ratio changing?
-0.0347
TATA
Accruals level
1.094
LVGI
Leverage increasing?
05

Altman Z-Score

5.5
Safe Zone
0 Distress1.102.605.0+ Safe
0.1605
Liquidity
0.5641
Cumulative profit
0.1556
Operating efficiency
1.4869
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25