Henkel AG & Co. KGaA (HEN3) AI Stock Analysis

• Market Cap: €27.08B
• Dividend Yield: 3.01%
• Average Volume (3M): 429.70K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.46
• Revenue Growth: 0.33%
• EPS Growth: 52.39%
• Country: DE
• Employees: 47,150
• Sector: Consumer Goods
• Sector Strength: N/A
• Industry: Household & Personal Products
• EPS (TTM): 1.43
• Shares Outstanding: 178,162,870
• 10 Day Avg. Volume: 386,777
• 30 Day Avg. Volume: 429,703
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €81.68
• Price Target Upside: 20.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 69 Neutral
• Price Target: €74.00 ▲(9.34% Upside)

Henkel AG & Co. KGaA's overall stock score is driven by strong financial performance and solid valuation metrics, making it a stable investment choice. However, the technical indicators suggest some caution due to the bearish signals, which slightly temper the overall score.

Positive Factors

Market Position

Henkel's leading adhesives business, with strong market positions across industries and technologies, is expected to support market share gains in strategic segments.

Valuation

Cheap valuation and the commencement of its share buyback programme may be supportive for the stock.

Negative Factors

Growth Challenges

The company's struggles for consistent growth are similar to its peers, indicating challenges in capturing past margin successes.

Sales Performance

The mid-point of the initial FY25 sales guidance range is lighter than consensus, suggesting lower-than-expected growth.

Volume Decline

A weaker-than-feared volume decline for Consumer Brands, due to subdued consumer sentiment and supply chain challenges, poses a risk.

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 AG & Co. KGaA generates revenue through its diversified portfolio of products across its three main business units. The Adhesive Technologies segment is a major revenue driver, serving industries such as automotive, electronics, packaging, and construction with high-performance adhesives and sealants. This segment benefits from global industrial trends and strategic partnerships with manufacturers. The Beauty Care division earns revenue by marketing and selling personal care and hair styling products, leveraging strong brand recognition and consumer loyalty. Meanwhile, the Laundry & Home Care segment capitalizes on household needs, offering popular detergent brands and cleaning solutions. Henkel's earnings are bolstered by its global presence, established distribution networks, and focus on innovation and sustainability initiatives.

Henkel AG & Co. KGaA Financial Statement Overview

Summary

Henkel AG & Co. KGaA exhibits strong financial health with robust profitability, stable financial leverage, and solid cash flow management. The company's consistent revenue growth and efficient operations position it well within the consumer products industry, despite minor declines in free cash flow.

Income Statement

Henkel AG & Co. KGaA demonstrates strong profitability with a gross profit margin of 50.12% and a net profit margin of 9.30% in the latest annual report. The EBIT margin stands at 13.12%, reflecting efficient cost management. Notably, net income and gross profit have grown significantly from the previous year, indicating positive revenue momentum.

Balance Sheet

The company maintains a solid financial position with a debt-to-equity ratio of 0.20, showcasing prudent leverage management. The return on equity is 9.23%, indicating decent profitability from shareholders' investments. An equity ratio of 61.61% underscores a strong equity base relative to total assets, reflecting financial stability.

Cash Flow

Henkel's cash flow performance is robust, highlighted by a high operating cash flow to net income ratio of 1.55, indicating efficient cash generation from operations. However, the free cash flow has declined slightly, but overall, the company maintains a strong cash position supporting its operations and growth initiatives.

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: Negative
• Last Price: 67.68
• 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:HEN3, the sentiment is Negative. The current price of 67.68 is below the 20-day moving average (MA) of 68.01, below the 50-day MA of 68.04, and below the 200-day MA of 74.34, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 47.88 is Neutral, neither overbought nor oversold. The STOCH value of 21.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:HEN3.

Henkel AG & Co. KGaA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HEN3	69 Neutral	€27.08B	14.14	9.64%	3.01%	0.33%	52.39%
Sector *	65 Neutral	kr26.20B	18.95	19.85%	5.83%	3.63%	34.55%
0DQ7	―	€23.24B	26.28	10.86%	―	―	―
0G6T	―	€11.23B	22.15	13.57%	―	―	―