Jim Cramer on HawkEye 360: “The Valuation’s Justifiable Even If the Stock’s Not Dirt Cheap”
Key takeaways
- The numbers here are pretty… impressive… Hawk Eye is not yet free cash flow positive.
- …Organic means that it’s from… they didn’t buy growth.
- Here’s the bottom line: I like this HawkEye 360 very much, and I think, guess what?
Jim Cramer on Hawk Eye 360: “The Valuation’s Justifiable Even If the Stock’s Not Dirt Cheap” Syeda Seirut Javed Thu, May 14, 2026 at 10:40 PM GMT+7 2 min read HAWK Hawk Eye 360, Inc. (NYSE:HAWK) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. Cramer highlighted that he likes it “very much,” as he commented:
The numbers here are pretty… impressive… Hawk Eye is not yet free cash flow positive. Okay, that is not ideal, but then again, you burn a lot of cash upfront when you put up the satellites in the sky. Second, the company does have a pristine balance sheet with over $400 million in cash and equivalents alongside zero debt. Third, HawkEye’s backlog has exploded over the past couple of years, climbing from $44 million at the end of 2024 to nearly $303 million at the end of last year. That’s fantastic. Management did say that it came down to $285 million by the end of March, but still, that’s a great number. More than double last year’s revenue total, and most of that backlog growth was organic, coming from the new contracts and the expansion of existing contracts rather than the ISA acquisition.
…Organic means that it’s from… they didn’t buy growth. So far, I’m a big fan of HawkEye 360, but what about HawkEye 360, the stock? Two different things. At $33 and change, the thing has a market capitalization of $3.1 billion and an enterprise value of $2.7 billion… Now, candidly, HawkEye’s valuation is a bit rich regardless of how you look at it…