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

• Market Cap: €27.50B
• Dividend Yield: 3.18%
• Average Volume (3M): 97.12K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.49
• Revenue Growth: -1.06%
• EPS Growth: N/A
• Country: DE
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.41
• Shares Outstanding: 259,795,870
• 10 Day Avg. Volume: 102,210
• 30 Day Avg. Volume: 97,121
• PEG Ratio: 0.34
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 14.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €72.00
• Price Target Upside: 13.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: €72.00 ▲(13.48% Upside)

Henkel's strong financial performance, characterized by stable revenue growth and improved profitability, is the most significant factor driving the score. The technical analysis indicates a positive trend, though momentum is limited. The valuation is fair, with a reasonable P/E ratio and an attractive dividend yield.

Henkel AG & Co. KGaA Business Overview & Revenue Model

Company Description

Henkel 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 Money

Henkel generates revenue primarily through the sale of its products across its three business sectors. The Adhesive Technologies segment is the largest revenue contributor, catering to automotive, electronics, and packaging industries with a wide array of adhesives, sealants, and functional coatings. The Beauty Care division earns revenue from hair care, skin care, and personal hygiene products, leveraging strong brand recognition and consumer loyalty. The Home Care segment focuses on laundry and cleaning products, which are essential for households. Henkel's revenue model is supported by strong market positioning, innovation in product development, and strategic partnerships with retailers and distributors. Additionally, the company invests in digital transformation and sustainability initiatives, enhancing its operational efficiency and appealing to environmentally conscious consumers, which further contributes to its earnings.

Henkel AG & Co. KGaA Financial Statement Overview

Summary

Henkel exhibits strong financial health with stable revenue growth, improved profitability, and efficient cost management. 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.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.18B	21.59B	21.51B	22.40B	20.07B	19.25B
Gross Profit	10.65B	10.82B	9.84B	9.47B	9.07B	8.99B
EBITDA	3.67B	3.68B	2.80B	2.59B	2.95B	2.74B
Net Income	2.09B	2.01B	1.32B	1.26B	1.63B	1.41B
Balance Sheet
Total Assets	32.79B	35.27B	31.73B	33.18B	32.67B	30.24B
Cash, Cash Equivalents and Short-Term Investments	3.43B	3.53B	2.17B	1.33B	2.46B	2.18B
Total Debt	4.27B	4.29B	2.89B	3.59B	2.96B	3.20B
Total Liabilities	12.67B	13.45B	11.73B	13.02B	12.88B	12.37B
Stockholders Equity	20.04B	21.73B	19.92B	20.08B	20.80B	19.59B
Cash Flow
Free Cash Flow	2.06B	2.49B	2.65B	598.00M	1.49B	2.37B
Operating Cash Flow	2.73B	3.12B	3.25B	1.19B	2.14B	3.08B
Investing Cash Flow	-545.00M	-2.33B	-684.00M	-323.00M	-479.00M	-1.26B
Financing Cash Flow	-1.07B	171.00M	-1.65B	-1.73B	-1.29B	-1.48B

Henkel AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 63.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:HEN, the sentiment is Negative. The current price of 63.45 is below the 20-day moving average (MA) of 65.80, below the 50-day MA of 65.01, and below the 200-day MA of 65.96, indicating a bearish trend. The MACD of -0.56 indicates Positive momentum. The RSI at 35.57 is Neutral, neither overbought nor oversold. The STOCH value of 23.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HEN.

Henkel AG & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEN	74 Outperform	€27.50B	12.73	10.30%	3.18%	-1.06%	―
BNR	66 Neutral	€7.33B	17.34	10.04%	4.13%	-1.30%	-28.95%
EVK	64 Neutral	€6.85B	16.14	2.46%	7.96%	-2.62%	―
G1A	64 Neutral	€10.08B	25.87	17.78%	1.84%	1.93%	2.27%
BEI	64 Neutral	€19.22B	22.37	10.76%	1.13%	1.83%	21.36%
FPE3	60 Neutral	€4.58B	17.45	16.05%	3.02%	2.35%	-0.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%