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Henkel AG & Co. KGaA (DE:HEN3)
XETRA:HEN3

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

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Henkel AG & Co. KGaA

(XETRA:HEN3)

Rating:70Outperform
Price Target:
€77.00
▲(10.79%Upside)
Henkel AG & Co. KGaA maintains strong financial performance with robust profitability and cash flow management, which is the key driver of the stock score. The technical analysis indicates neutral momentum, balancing out the stock's fair valuation given the P/E ratio and dividend yield. The absence of significant earnings call insights or corporate events keeps the focus on financial health and market trends.
Positive Factors
Adhesives Business
Henkel has a leading adhesives business, being the only company with strong market positions across industries, regions and technologies, including 12 leading technology platforms that should support market share gains in strategic segments.
Valuation
A cheap valuation, cost savings for Consumer Brands and the commencement of its share buyback programme may be supportive.
Negative Factors
Sales Growth
Henkel recorded weaker-than-expected +1.1% organic sales growth in 4Q24 with both Adhesives and Consumer Brands coming in below expectations.
Volume Decline
The main surprise in Q1 was a weaker-than-feared volume decline for Consumer Brands due to subdued consumer sentiment, customer destocking and supply chain challenges.

Henkel AG & Co. KGaA (HEN3) vs. iShares MSCI Germany ETF (EWG)

Henkel AG & Co. KGaA Business Overview & Revenue Model

Company DescriptionHenkel AG & Co. KGaA is a global company headquartered in Düsseldorf, Germany, specializing in three core sectors: Adhesive Technologies, Beauty Care, and Laundry & Home Care. Established in 1876, Henkel is known for its leading brands and technologies in adhesives, sealants, and functional coatings. The company serves both industrial and consumer markets with a broad portfolio of consumer goods, including hair care, body care, skin care, and household cleaning products.
How the Company Makes MoneyHenkel AG & Co. KGaA generates revenue through its diversified portfolio across three main business sectors. In the Adhesive Technologies sector, Henkel provides high-impact solutions for industrial applications, which include adhesives, sealants, and functional coatings for various industries such as automotive, electronics, and packaging. This sector is the largest contributor to Henkel's revenue. The Beauty Care segment focuses on consumer products like hair care, styling, and personal care items, with brands like Schwarzkopf and Syoss. Meanwhile, the Laundry & Home Care sector includes products for laundry detergents and household cleaners, with brands like Persil and Purex. Henkel's revenue model is supported by its strong brand portfolio, significant investments in innovation, and strategic acquisitions to expand market reach and enhance product offerings.

Henkel AG & Co. KGaA Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
21.40B21.59B21.51B22.40B20.07B19.25B
Gross Profit
10.44B10.82B9.84B9.47B9.07B8.99B
EBIT
3.06B2.83B2.01B2.15B2.58B2.24B
EBITDA
3.70B3.68B2.80B2.59B2.95B2.74B
Net Income Common Stockholders
1.78B2.01B1.32B1.26B1.63B1.41B
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.33B3.53B2.17B1.33B2.46B2.18B
Total Assets
29.56B35.27B31.73B33.18B32.67B30.24B
Total Debt
4.17B4.29B2.89B3.59B2.96B3.20B
Net Debt
3.11B1.40B936.00M2.47B842.00M1.47B
Total Liabilities
12.56B13.45B11.73B13.02B12.88B12.37B
Stockholders Equity
16.91B21.73B19.92B20.08B20.80B19.59B
Cash FlowFree Cash Flow
2.75B2.49B2.65B598.00M1.49B2.37B
Operating Cash Flow
3.35B3.12B3.25B1.19B2.14B3.08B
Investing Cash Flow
-2.37B-2.33B-684.00M-323.00M-479.00M-1.26B
Financing Cash Flow
-450.00M171.00M-1.65B-1.73B-1.29B-1.48B

Henkel AG & Co. KGaA Technical Analysis

Technical Analysis Sentiment
Negative
Last Price69.50
Price Trends
50DMA
68.86
Positive
100DMA
74.19
Negative
200DMA
76.81
Negative
Market Momentum
MACD
0.14
Positive
RSI
47.09
Neutral
STOCH
22.81
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 69.5 is below the 20-day moving average (MA) of 70.26, above the 50-day MA of 68.86, and below the 200-day MA of 76.81, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 47.09 is Neutral, neither overbought nor oversold. The STOCH value of 22.81 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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DEBEI
73
Outperform
€26.37B29.5410.86%0.83%4.27%24.74%
71
Outperform
€2.74B12.8215.70%3.56%2.64%-17.38%
70
Outperform
€27.75B14.619.64%2.92%0.33%52.39%
65
Neutral
$8.88B15.054.75%203.76%3.54%-2.50%
64
Neutral
€5.56B21.1715.87%2.40%2.58%8.02%
DESDF
61
Neutral
€2.89B91.490.00%0.93%-1.06%
DELXS
57
Neutral
€2.22B-3.92%0.36%-5.18%-139.96%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DE:HEN3
Henkel AG & Co. KGaA
69.50
-12.88
-15.63%
DE:SDF
K+S Aktiengesellschaft
15.94
3.19
25.01%
DE:BEI
Beiersdorf
118.15
-25.14
-17.54%
DE:BOSS
Hugo Boss
39.84
-4.77
-10.69%
DE:FPE3
Fuchs Petrolub
49.14
5.11
11.61%
DE:LXS
LANXESS
26.62
4.28
19.14%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.