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

• Market Cap: €26.64B
• Dividend Yield: 2.63%
• Average Volume (3M): 516.73K
• Price to Earnings (P/E): 14.0
• Beta (1Y): 0.49
• Revenue Growth: 0.33%
• EPS Growth: 52.39%
• Country: DE
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 56
• Industry: Household & Personal Products
• EPS (TTM): 1.43
• Shares Outstanding: 178,162,870
• 10 Day Avg. Volume: 603,675
• 30 Day Avg. Volume: 516,730
• PEG Ratio: -1.01
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 46.58
• 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: €81.53
• Price Target Upside: 19.48% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 70 Outperform
• Price Target: €77.00 ▲(12.84%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

Market Position

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

Consumer Sentiment

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 Performance

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 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

Henkel AG & Co. KGaA shows strong profitability with significant growth in net income and gross profit, effective cost management, a solid financial position, and robust cash flow generation, despite a slight decline 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: 68.24
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 68.24 is above the 20-day moving average (MA) of 67.47, below the 50-day MA of 68.62, and below the 200-day MA of 75.80, indicating a bearish trend. The MACD of -0.71 indicates Negative momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 57.53 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	70 Outperform	€26.64B	13.97	9.64%	2.63%	0.33%	52.39%
Sector *	65 Neutral	$27.25B	15.35	-4.01%	3.14%	1.00%	1.98%
0DQ7		€23.75B	26.70	10.86%	0.80%	―	―
0LCR		€5.52B	20.92	15.87%	2.11%	―	―
0Q8F		€2.83B	13.53	15.00%	2.94%	―	―
0Q2N		€2.84B	93.32	0.00%	0.94%	―	―
LNXSF		$2.61B	―	-3.92%	0.37%	―	―