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Henkel AG and CO. (HENKY)
:HENKY
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Henkel AG
(OTC:HENKY)
Select Model
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Rating:74Outperform
Price Target:
$21.00
▲(9.60% Upside)
Henkel AG's overall stock score reflects its strong financial health and balanced earnings call sentiment. While the company shows robust profitability and a solid balance sheet, modest revenue growth and technical indicators suggest potential challenges in market expansion. The valuation is reasonable, and the dividend yield adds to its attractiveness. However, technical analysis indicates a lack of strong upward momentum, which tempers the overall score.
Henkel AG (HENKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.06B
Dividend Yield2.04%
Average Volume (3M)2.29K
Price to Earnings (P/E)14.1
Beta (1Y)0.21
Revenue Growth-0.51%
EPS GrowthN/A
CountryUS
Employees47,150
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.37
Shares Outstanding1,039,183,500
10 Day Avg. Volume0
30 Day Avg. Volume2,290
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)1.43
Price to Sales (P/S)1.44
P/FCF Ratio12.46
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$25.20Price Target Upside31.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Henkel AG Business Overview & Revenue Model
Company DescriptionHenkel AG is a global leader in consumer and industrial products, headquartered in Düsseldorf, Germany. The company operates in three main business sectors: Adhesive Technologies, Beauty Care, and Home Care. Henkel’s core products include adhesives for various applications, hair care and styling products, and household cleaning solutions. With a strong portfolio of well-known brands such as Persil, Schwarzkopf, and Loctite, Henkel serves both consumer and professional markets worldwide.
How the Company Makes MoneyHenkel generates revenue through a diversified model that includes the sale of consumer and industrial products across its three business sectors. The Adhesive Technologies segment is the largest revenue contributor, providing a range of adhesives and sealants for automotive, electronics, and construction industries. The Beauty Care segment focuses on hair care, skin care, and personal hygiene products, leveraging strong brand recognition and innovation to drive sales. The Home Care segment offers laundry detergents and household cleaners, benefiting from consumer trends towards sustainability and health. Henkel also engages in significant partnerships with retailers and distributors, enhancing its market reach and driving sales growth. Additionally, the company's commitment to research and development enables it to innovate and respond to consumer demands, contributing to its financial performance.
Henkel AG Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 11, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong performance in Electronics and Industrials, successful early completion of the Consumer Brands merger, and positive sales growth in North America. However, these were offset by pricing pressures in Consumer Brands, challenges in the Automotive sector, and a negative market environment for laundry products. The sentiment is balanced with notable achievements and ongoing challenges.Q3-2025 Updates
Positive Updates
Strong Performance in Electronics and Industrials
Adhesive Technologies showed positive price and volume development, supported by Electronics & Industrials, with Electronics Solutions expected to show high single-digit market growth in coming years.
Consumer Brands Merger Ahead of Schedule
The Consumer Brands merger is in its final stages, expected to conclude a year ahead of schedule, with anticipated net savings of at least EUR 525 million by end of the year.
North America Organic Sales Growth
North America stood out with good organic sales growth, supported by both business units, contributing positively to overall company performance.
Successful Brand Innovations in Laundry Care
Persil and Perwoll delivered positive growth with innovations like Persil Giant Discs and Perwoll's triple renew technology driving market share gains.
Negative Updates
Pricing Pressure in Consumer Brands
Consumer Brands experienced negative pricing in the third quarter, particularly in Laundry in Europe, reflecting a challenging market environment.
Challenging Market Environment in Automotive
Adhesive Technologies faced muted performance in the Automotive sector, with no significant improvement expected in the near term.
Overall Negative Market in Laundry
The overall market for laundry products was negative, impacted by consumer sentiment and a shift towards private labels, particularly in Europe.
Company Guidance
In the Q3 2025 results conference call, Henkel reported strong performance with a clear acceleration in top-line development, achieving organic sales growth of 1.4%. The Adhesive Technologies division recorded a 2.5% increase in organic sales, supported by strong performances in Electronics and Industrials, while Consumer Brands achieved positive volume growth, particularly in Hair Care. The company executed around EUR 700 million in share buybacks by the end of October. Despite a challenging economic environment, Henkel maintained its full-year guidance, expecting both adjusted EBIT margin and adjusted EPS growth at constant currency to remain well within the current outlook ranges. The Consumer Brands merger is on track to conclude by year-end, a year ahead of schedule, with expected net savings of at least EUR 525 million by the end of 2025.Henkel AG Financial Statement Overview
Summary
Henkel AG demonstrates robust financial health with strong profitability margins and a solid balance sheet characterized by low leverage. The company generates ample cash flow, although recent revenue and free cash flow growth rates have been modest, suggesting potential challenges in expanding market share or operational efficiency.Income Statement
Henkel AG's income statement reveals strong profitability with a gross profit margin of 50.1% and a net profit margin of 9.3% in 2024. The EBIT and EBITDA margins are also robust at 13.1% and 17.0%, respectively. However, revenue growth has been stagnant with a slight increase of 0.3% from 2023 to 2024, indicating a need for more aggressive growth strategies.85
Very Positive
Balance Sheet
The company maintains a healthy balance sheet with a debt-to-equity ratio of 0.20, reflecting low financial leverage. The equity ratio is 61.6%, showing strong shareholder equity compared to total assets. Return on equity is solid at 9.2%, although it indicates a slight decline from previous years, suggesting room for improvement in asset utilization.80
Positive
Cash Flow
Cash flow analysis shows a slight decline in free cash flow growth, with a decrease of 5.8% from 2023 to 2024. However, the operating cash flow to net income ratio remains strong at 1.55, indicating efficient cash generation from operations. The free cash flow to net income ratio is also healthy at 1.24, supporting the company's capacity to fund operations and investments.78
Positive
| 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 | 10.75B | 10.82B | 9.66B | 9.37B | 8.97B | 8.87B |
| EBITDA | 3.22B | 3.68B | 2.92B | 2.69B | 3.23B | 2.77B |
| 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 | 30.25B |
| Cash, Cash Equivalents and Short-Term Investments | 3.43B | 3.53B | 2.19B | 1.40B | 2.46B | 2.22B |
| Total Debt | 3.71B | 4.29B | 2.89B | 3.58B | 3.44B | 3.64B |
| Total Liabilities | 12.67B | 13.45B | 11.73B | 13.02B | 12.88B | 12.37B |
| Stockholders Equity | 20.04B | 21.73B | 19.92B | 20.08B | 19.71B | 17.78B |
Cash Flow | ||||||
| Free Cash Flow | 2.07B | 2.49B | 2.65B | 654.00M | 1.49B | 2.37B |
| Operating Cash Flow | 2.74B | 3.12B | 3.25B | 1.25B | 2.14B | 3.08B |
| Investing Cash Flow | -452.00M | -2.33B | -684.00M | -217.00M | -479.00M | -1.26B |
| Financing Cash Flow | -1.19B | 171.00M | -1.65B | -1.89B | -1.29B | -1.48B |
Henkel AG Technical Analysis
Negative
19.16
Price Trends
18.99
Negative
18.84
Positive
18.44
Positive
Market Momentum
0.09
Negative
47.12
Neutral
55.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HENKY, the sentiment is Negative. The current price of 19.16 is above the 20-day moving average (MA) of 19.09, above the 50-day MA of 18.99, and above the 200-day MA of 18.44, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 47.12 is Neutral, neither overbought nor oversold. The STOCH value of 55.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HENKY.
Henkel AG Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $33.06B | 14.11 | 9.98% | 2.04% | -0.51% | ― | |
74 Outperform | $345.07B | 21.56 | 31.90% | 2.86% | 1.23% | 17.97% | |
73 Outperform | $148.56B | 24.90 | 28.36% | 3.44% | -0.30% | -14.60% | |
63 Neutral | $62.91B | 21.87 | 450.35% | 2.64% | -0.05% | 2.49% | |
63 Neutral | $31.92B | 22.39 | 13.47% | 4.95% | -2.94% | 34.54% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $34.52B | 17.62 | 136.87% | 4.81% | -10.04% | -23.41% |
* Consumer Defensive Sector Average
HENKY
Henkel AG
18.96
0.63
3.44%
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KMB
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PG
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145.82
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-12.35%
UL
Unilever
59.21
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5.75%
KVUE
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16.24
-6.54
-28.71%
Henkel AG Corporate Events
Henkel Reports Solid Q3 Growth Amid Market Challenges
Nov 7, 2025
Henkel AG & Co. is a global leader in the industrial and consumer sectors, renowned for its adhesive technologies and consumer brands, including laundry, home care, and hair products. In its third-quarter earnings report for 2025, Henkel reported a solid organic sales growth of 1.4% despite challenging market conditions. The company’s revenue reached 5.1 billion euros, driven by positive volume development in both its Adhesive Technologies and Consumer Brands business units. Notably, North America showed significant growth contributions from both sectors.
Henkel AG & CO. Earnings Call: Mixed Results Amid Challenges
Aug 13, 2025
Henkel AG & CO. Earnings Call Reveals Mixed Performance Amidst Macroeconomic Challenges
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.