Jim Cramer endorses HawkEye 360, citing strong backlog growth and a debt-free balance sheet despite its premium valuation.
HawkEye 360 (NYSE:HAWK) has drawn praise for its financial metrics, including a backlog surge from $44 million at the end of 2024 to $303 million by last year’s close. The figure dipped to $285 million by March but remains more than double its prior-year revenue, driven largely by organic growth rather than acquisitions.
The company holds over $400 million in cash and no debt, though it is not yet free cash flow positive. HawkEye’s market capitalization stands at $3.1 billion, with an enterprise value of $2.7 billion, reflecting a valuation that Cramer acknowledges as rich but justifiable.
Cramer expressed confidence in the stock at its current price of $33, separating the company’s operational strength from its valuation concerns. The endorsement comes despite the stock’s premium positioning in the market.