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Henkel AG & Co. KGaA (DE:HEN)
XETRA:HEN
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Henkel AG & Co. KGaA (HEN) AI Stock Analysis

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Henkel AG & Co. KGaA

(XETRA:HEN)

Rating:74Outperform
Price Target:
€70.00
▲(12.00%Upside)
Henkel's stock is supported by strong financial performance, with stable revenue growth and efficient cost management being the most significant factors. While technical indicators suggest moderate bullish momentum, the valuation remains attractive with a reasonable P/E ratio and a solid dividend yield. The absence of earnings call data and notable corporate events limits additional insights.

Henkel AG & Co. KGaA (HEN) vs. iShares MSCI Germany ETF (EWG)

Henkel AG & Co. KGaA Business Overview & Revenue Model

Company DescriptionHenkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide. The company's Adhesive Technologies segment offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; automotive and metals; electronics and industrials; and craftsmen, construction, and professional industries. This segment markets its products primarily under the Loctite, Technomelt, Bonderite, Teroson, and Aquence brands. Its Beauty Care segment provides hair cosmetics; and body, skin, and oral care products, as well as operates professional hair salons. This segment distributes its products through brick-and-mortar stores, hair salons, third-party online platforms, and direct-to-consumer channels primarily under the Schwarzkopf, Dial, and Syoss brands. The company's Laundry & Home Care segment offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and WC applications; household, glass, and specialty cleaners; and air fresheners and insect control products for household applications. This segment markets its products primarily under the Persil, Bref, Purex, all, and other brands. Henkel AG & Co. KGaA was founded in 1876 and is headquartered in Düsseldorf, Germany.
How the Company Makes MoneyHenkel AG & Co. KGaA generates revenue primarily through its three business sectors. The Adhesive Technologies sector contributes significantly to its earnings, offering products for various industries such as automotive, electronics, packaging, and construction. The Beauty Care sector provides hair and body care products sold under well-known brands like Schwarzkopf and Syoss, targeting both retail consumers and professional salons. The Laundry & Home Care sector includes popular brands such as Persil, Purex, and Pril, offering laundry detergents and household cleaning products. Henkel's revenue model is bolstered by a combination of direct sales, partnerships, and distribution agreements, enabling wide market reach and customer accessibility. The company's focus on innovation, brand strength, and sustainable practices further drive its financial growth and market presence.

Henkel AG & Co. KGaA Financial Statement Overview

Summary
Henkel exhibits strong financial health with stable revenue growth, improved profitability, and efficient cost management, as reflected in the income statement. The balance sheet is solid with low leverage and a strong equity base. Cash flow generation remains robust, although free cash flow growth has seen a minor decline. Overall, the company maintains a strong financial position with effective management of resources and costs.
Income Statement
82
Very Positive
Henkel has demonstrated stable revenue with a slight increase from 2023 to 2024. The gross profit margin improved to 50.13% in 2024, indicating efficient cost management. The net profit margin increased significantly to 9.30%, showcasing enhanced profitability. The EBIT margin of 13.12% and EBITDA margin of 17.03% in 2024 further reflect the company's strong operational performance.
Balance Sheet
78
Positive
The company's debt-to-equity ratio is 0.20, which indicates a conservative leverage strategy. Return on equity (ROE) improved to 9.23%, reflecting effective use of equity to generate profits. The equity ratio of 61.62% suggests a strong equity base, providing financial stability. Overall, the balance sheet showcases a solid financial position with manageable debt levels.
Cash Flow
75
Positive
Operating cash flow in 2024 was robust at 3.12 billion, though slightly down from the previous year. The free cash flow to net income ratio was 1.24, indicating a healthy cash generation relative to net income. Free cash flow growth rate was negative due to reduced free cash flow compared to 2023. Despite minor fluctuations, cash flow remains strong overall.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue21.59B21.51B22.40B20.07B19.25B
Gross Profit10.82B9.84B9.47B9.07B8.99B
EBITDA3.68B2.80B2.59B2.95B2.74B
Net Income2.01B1.32B1.26B1.63B1.41B
Balance Sheet
Total Assets35.27B31.73B33.18B32.67B30.24B
Cash, Cash Equivalents and Short-Term Investments3.53B2.17B1.33B2.46B2.18B
Total Debt4.29B2.89B3.59B2.96B3.20B
Total Liabilities13.45B11.73B13.02B12.88B12.37B
Stockholders Equity21.73B19.92B20.08B20.80B19.59B
Cash Flow
Free Cash Flow2.49B2.65B598.00M1.49B2.37B
Operating Cash Flow3.12B3.25B1.19B2.14B3.08B
Investing Cash Flow-2.33B-684.00M-323.00M-479.00M-1.26B
Financing Cash Flow171.00M-1.65B-1.73B-1.29B-1.48B

Henkel AG & Co. KGaA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price62.50
Price Trends
50DMA
62.62
Positive
100DMA
63.75
Negative
200DMA
67.45
Negative
Market Momentum
MACD
0.08
Negative
RSI
53.26
Neutral
STOCH
69.24
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HEN, the sentiment is Positive. The current price of 62.5 is above the 20-day moving average (MA) of 61.83, below the 50-day MA of 62.62, and below the 200-day MA of 67.45, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:HEN.

Henkel AG & Co. KGaA Peers Comparison

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEHEN
74
Outperform
€27.29B13.149.64%3.21%0.33%52.39%
58
Neutral
HK$14.16B4.53-3.01%6.82%3.67%-54.16%
€23.72B26.8110.86%0.92%
€8.17B15.4011.49%3.71%
€8.23B27.793.25%6.63%
€4.78B17.9115.87%2.84%
€9.45B24.9916.56%1.97%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HEN
Henkel AG & Co. KGaA
62.50
-10.18
-14.00%
GB:0DQ7
Beiersdorf
107.60
-29.36
-21.44%
GB:0MPT
Brenntag AG
55.38
-8.00
-12.62%
GB:0QDS
Evonik
17.59
-0.50
-2.76%
GB:0LCR
Fuchs Petrolub
41.20
1.16
2.90%
GB:0MPJ
GEA Group AG
59.40
20.13
51.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025