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

• Market Cap: €28.17B
• Dividend Yield: 3.14%
• Average Volume (3M): 88.76K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.48
• Revenue Growth: -1.06%
• EPS Growth: 17.22%
• Country: DE
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 1.29
• Shares Outstanding: 259,795,870
• 10 Day Avg. Volume: 82,198
• 30 Day Avg. Volume: 88,756
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: €72.00 ▲(11.98% Upside)

Henkel's strong financial performance, characterized by stable revenue growth and improved profitability, is the most significant factor contributing to its score. The technical analysis indicates a neutral market position, while the valuation suggests the stock is reasonably priced with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Strong Financial Health

Henkel's robust financial health, characterized by stable revenue growth and improved profitability, indicates a solid foundation for long-term business sustainability and resilience against market fluctuations.

Solid Balance Sheet

A low debt-to-equity ratio reflects a conservative financial strategy, providing Henkel with flexibility to invest in growth opportunities and withstand economic downturns.

Improved Profit Margins

Improved profit margins suggest effective cost management and pricing strategies, enhancing Henkel's ability to generate profits and reinvest in business growth.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth can indicate challenges in market expansion or product demand, potentially impacting Henkel's long-term growth prospects and competitive positioning.

Negative Free Cash Flow Growth

Negative free cash flow growth may limit Henkel's ability to fund new projects, pay down debt, or return capital to shareholders, affecting future financial flexibility.

Reduced Operating Cash Flow

A reduction in operating cash flow, despite being robust, could indicate potential inefficiencies or challenges in cash generation, impacting Henkel's operational and strategic initiatives.

Henkel AG & Co. KGaA Business Overview & Revenue Model

Company Description

Henkel AG & Co. KGaA is a global leader in consumer and industrial products, operating in three key sectors: Adhesive Technologies, Beauty Care, and Home Care. Founded in 1876 and headquartered in Düsseldorf, Germany, Henkel is known for its innovative products and brands such as Persil, Schwarzkopf, Loctite, and Dial. The company focuses on sustainability and digitalization, delivering solutions that cater to the needs of consumers and businesses across various markets worldwide.

How the Company Makes Money

Henkel generates revenue through a diversified portfolio of products and services in its three main sectors. Its Adhesive Technologies division accounts for the largest share of revenue, offering adhesives, sealants, and surface treatments for industrial and consumer applications. The Beauty Care sector generates income through hair care, skin care, and personal grooming products, leveraging strong brand recognition and consumer loyalty. The Home Care division provides cleaning and laundry products, contributing significantly to sales. Henkel's revenue model is bolstered by strategic partnerships with retailers and distributors, enabling broad market access. Additionally, the company emphasizes research and development to innovate and adapt its offerings, addressing evolving consumer trends and preferences, 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	3.68B	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: 64.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 64.3 is below the 20-day moving average (MA) of 65.21, below the 50-day MA of 64.96, and above the 200-day MA of 64.28, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 44.29 is Neutral, neither overbought nor oversold. The STOCH value of 44.99 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	73 Outperform	€28.17B	13.04	10.30%	3.14%	-1.06%	17.22%
FPE3	70 Outperform	€4.48B	16.97	16.00%	3.06%	1.42%	-0.40%
G1A	65 Neutral	€9.91B	25.44	17.71%	1.99%	2.26%	6.49%
BEI	63 Neutral	€20.29B	23.49	10.44%	1.10%	1.83%	21.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
BNR	60 Neutral	€7.15B	17.12	9.62%	4.24%	-3.35%	-23.06%
EVK	58 Neutral	€6.67B	15.73	1.08%	9.00%	-5.92%	-58.33%