Small-cap stock %Hawkins Inc. (NASDAQ: $HWKN) of Roseville, Minnesota is little known to most investors. However, the company has trounced the returns of the broader market over the past five years.
The specialty chemical and ingredients company that is involved in water treatment and making spices for food has seen its stock rise 77% this year, 99% in the last 12 months, and 522% in the past five years.
The five-year performance of the stock crushes the 90% gain in the benchmark S&P 500 index over the same period of time.
Yet Hawkins, which has been in business since 1938, has a market capitalization of only $2.60 billion U.S., putting it in the camp of small-cap stocks.
The success of Hawkins and its stock is due to the essential nature of its business, particularly its water treatment unit that serves municipalities across the U.S.
Today, Hawkins has 60 facilities across 27 American states and employs 950 people. The company posted revenue of $919 million U.S. in 2023.
Since 2000, Hawkins’ stock has risen more than 35-fold. The company has also raised its dividend for nearly 40 consecutive years.
Yet for all its success, Hawkins’ stock is virtually ignored on Wall Street. Currently only one analyst follows the company and has a price target on the shares.