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

• Market Cap: €28.58B
• Dividend Yield: 3.08%
• Average Volume (3M): 104.52K
• Price to Earnings (P/E): 13.2
• Beta (1Y): 0.49
• Revenue Growth: -1.06%
• EPS Growth: N/A
• Country: DE
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 49
• Industry: Household & Personal Products
• EPS (TTM): 1.41
• Shares Outstanding: 259,795,870
• 10 Day Avg. Volume: 119,649
• 30 Day Avg. Volume: 104,521
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: €74.00
• Price Target Upside: 12.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 74 Outperform
• Price Target: €72.00 ▲(9.67% Upside)

Henkel's strong financial performance and reasonable valuation are the primary drivers of its stock score. The company's solid balance sheet and efficient cost management contribute significantly to its financial health. Technical analysis indicates positive short-term momentum, though long-term resistance remains. The absence of earnings call data and corporate events does not impact the overall score.

Henkel AG & Co. KGaA Business Overview & Revenue Model

Company Description

Henkel AG & Co. KGaA is a global leader in consumer and industrial products, headquartered in Düsseldorf, Germany. The company operates in three main sectors: Adhesive Technologies, Beauty Care, and Home Care. Henkel's diverse portfolio includes well-known brands such as Persil, Schwarzkopf, and Loctite, offering innovative solutions for both professional and consumer markets. With a commitment to sustainability and innovation, Henkel strives to create value for customers and stakeholders through its comprehensive range of products and services.

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

Henkel AG & Co. KGaA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 65.65
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 65.65 is above the 20-day moving average (MA) of 65.29, above the 50-day MA of 63.50, and below the 200-day MA of 66.37, indicating a neutral trend. The MACD of 0.92 indicates Positive momentum. The RSI at 54.94 is Neutral, neither overbought nor oversold. The STOCH value of 33.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€28.58B	13.17	10.30%	3.08%	-1.06%	―
Sector *	63 Neutral	$20.54B	14.42	-2.84%	3.14%	2.08%	-6.12%
0DQ7	―	€21.36B	24.85	10.44%	―	―	―
0MPT	―	€7.64B	18.15	9.86%	―	―	―
0QDS	―	€7.68B	18.17	4.87%	―	―	―
0LCR	―	€4.77B	18.50	16.29%	―	―	―
0MPJ	―	€10.05B	25.79	17.92%	―	―	―