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

• Market Cap: €29.15B
• Dividend Yield: 2.81%
• Average Volume (3M): 417.12K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.49
• Revenue Growth: -1.06%
• EPS Growth: N/A
• Country: DE
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 46
• Industry: Household & Personal Products
• EPS (TTM): 1.41
• Shares Outstanding: 178,162,870
• 10 Day Avg. Volume: 427,558
• 30 Day Avg. Volume: 417,115
• 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: €82.18
• Price Target Upside: 13.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 70 Outperform
• Price Target: €76.00 ▲(4.68% Upside)

Henkel AG & Co. KGaA's overall stock score reflects its strong financial performance, characterized by robust profitability and stable financial leverage. The technical analysis indicates a neutral to slightly bullish momentum, while the valuation suggests a fair market price with an attractive dividend yield. The absence of earnings call data and corporate events does not impact the score.

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.

Earnings

Earnings per share is 4% ahead of expectations.

Valuation

A cheap valuation, cost savings for Consumer Brands and the commencement of its share buyback programme may be supportive.

Negative Factors

Consumer Brands Volume

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.

Sales and Guidance

The fourth quarter of 2024 sales miss and lower than expected guidance were setbacks for the company's growth and margin outlook.

Sales Growth

Henkel recorded weaker-than-expected +1.1% organic sales growth in 4Q24 with both Adhesives and Consumer Brands coming in below expectations.

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 in the three main sectors. The Adhesive Technologies segment contributes significantly to the company's earnings, servicing industries such as automotive, electronics, and packaging with products designed for bonding, sealing, and surface treatment. The Beauty Care sector includes hair care, skin care, and personal care products, which are sold through various channels, including retail and professional markets. The Home Care segment offers laundry and home cleaning products. Henkel's revenue model relies on a combination of direct sales, partnerships with retailers and distributors, and significant investments in research and development to drive innovation and maintain competitive advantage. Strategic alliances and collaborations with other companies also enhance its market reach and product offerings, further contributing to overall revenue growth.

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: Neutral
• Last Price: 72.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 72.6 is above the 20-day moving average (MA) of 70.87, above the 50-day MA of 68.89, and below the 200-day MA of 73.86, indicating a neutral trend. The MACD of 1.38 indicates Negative momentum. The RSI at 61.52 is Neutral, neither overbought nor oversold. The STOCH value of 69.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	€29.15B	14.74	10.30%	2.81%	-1.06%	―
Sector *	63 Neutral	$20.46B	14.47	-3.60%	3.13%	2.63%	-6.18%
0DQ7	―	€21.45B	25.08	10.44%	―	―	―
0G6T	―	€11.48B	23.03	13.57%	―	―	―