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Henkel AG and CO. (HENKY)
:HENKY
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Henkel AG
(OTC:HENKY)
Rating:76Outperform
Price Target:
$20.00
â–²(9.47%Upside)
Henkel AG (HENKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.54B
Dividend Yield3.13%
Average Volume (3M)5.84K
Price to Earnings (P/E)14.1
Beta (1Y)0.24
Revenue Growth0.39%
EPS Growth52.46%
CountryUS
Employees47,150
SectorConsumer Defensive
Sector Strength59
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.42
Shares Outstanding1,039,183,500
10 Day Avg. Volume0
30 Day Avg. Volume5,836
Financial Highlights & Ratios
PEG Ratio0.45
Price to Book (P/B)1.32
Price to Sales (P/S)0.00
P/FCF Ratio9.83
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.00Price Target Upside9.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Henkel AG Business Overview & Revenue Model
Company DescriptionHenkel AG & Co. KGaA is a global leader in both consumer and industrial sectors, headquartered in Düsseldorf, Germany. The company operates through three primary business units: Adhesive Technologies, Beauty Care, and Laundry & Home Care. Henkel's Adhesive Technologies division is the world market leader in adhesives, sealants, and functional coatings, serving industries such as automotive, electronics, and packaging. The Beauty Care segment offers a wide range of hair care, hair styling, and skincare products, while the Laundry & Home Care division provides consumers with a variety of detergents and cleaning solutions.
How the Company Makes MoneyHenkel AG generates its revenue through its diversified portfolio of products across its three business units. The Adhesive Technologies division is the largest revenue contributor, providing high-performance adhesives and sealants to industrial clients across various sectors, including automotive, electronics, and construction. These products are sold directly to manufacturers and businesses, forming long-term partnerships that ensure steady income. The Beauty Care division earns revenue by offering hair care, hair styling, and skin care products to end consumers and professional salons, leveraging strong brand names like Schwarzkopf and Syoss. Meanwhile, the Laundry & Home Care division makes money by selling household cleaning and laundry products under well-known brands like Persil and Purex. Henkel's success in these segments is augmented by its strong focus on research and development, leading to innovative products that meet evolving consumer needs. The company's global reach and strategic acquisitions also play a significant role in expanding its market presence and boosting sales.
Henkel AG Earnings Call Summary
Earnings Call Date:May 08, 2025
(Q1-2025)
| % Change Since: 3.10%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance with strong innovation and strategic achievements in Adhesive Technologies and Consumer Brands. However, the company faced challenges in consumer sentiment and supply chain issues, particularly affecting North America. Despite a slow start, Henkel remains optimistic about stronger performance in the second half of the year.Q1-2025 Updates
Positive Updates
Strong Start in Adhesive Technologies
Adhesive Technologies delivered organic net sales growth of 1.1% for the first quarter, with a good balance between volumes and pricing both being in positive territory.
Successful Strategic Portfolio Optimization
Henkel concluded its strategic portfolio optimization program by closing the divestment of the Retailer Brands business in North America earlier than initially anticipated.
Innovation and Market Leadership in Consumer Brands
Consumer Brands saw an average 4.5% organic sales growth over the last two years, with significant improvements in gross margins and EBIT margins.
Strong Margins and Capital Allocation
Henkel started the year with strong gross and EBIT margins and is initiating a new share buyback of up to €1 billion, to be concluded by Q1 2026.
Negative Updates
Decline in Consumer Business
Henkel's consumer business reported a minus 3.5% organic sales growth, impacted by muted consumer sentiment and customer destocking, particularly in the U.S.
Challenges in North America
Sales in North America declined by 5.6% due to a challenging environment, particularly affecting the Consumer Brands segment.
Supply Chain Challenges
Volume development in Consumer Brands negatively impacted by supply chain challenges, although these have been mostly resolved.
Company Guidance
During Henkel's Q1 2025 Results Conference Call, the guidance provided was cautiously optimistic despite a challenging macroeconomic environment. The company reported a group-level organic net sales growth of minus 1%, with the consumer business at minus 3.5% and Adhesive Technologies achieving a positive 1.1% growth. Henkel expects organic sales growth for the full year between 1.5% and 3.5%, with adjusted EBIT margins anticipated to be in the range of 14% to 15.5%. The outlook remains unchanged, projecting a stronger performance in the second half of 2025 supported by a robust innovation pipeline in Consumer Brands and expected recovery in Adhesive Technologies volumes. The company is also continuing with its strategic portfolio optimization and plans a new share buyback program of up to €1 billion by Q1 2026. Despite the current market challenges, Henkel remains committed to its midterm ambitions, expecting 3% to 4% organic sales growth and an adjusted EBIT margin in the mid-teens.Henkel AG Financial Statement Overview
Summary
Henkel AG shows robust financial health with strong profitability margins and a solid balance sheet. The company maintains low financial leverage and generates ample cash flow. However, stagnant revenue growth and a decline in free cash flow growth suggest 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 | 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 | 9.66B | 9.37B | 8.97B | 8.87B |
| EBITDA | 3.68B | 2.92B | 2.64B | 3.18B | 3.10B |
| Net Income | 2.01B | 1.32B | 1.26B | 1.63B | 1.41B |
Balance Sheet | |||||
| Total Assets | 35.27B | 31.73B | 33.18B | 32.67B | 30.25B |
| Cash, Cash Equivalents and Short-Term Investments | 3.53B | 2.25B | 1.40B | 2.46B | 2.22B |
| Total Debt | 4.29B | 2.89B | 3.58B | 3.44B | 3.64B |
| Total Liabilities | 13.45B | 11.73B | 13.02B | 12.88B | 12.37B |
| Stockholders Equity | 21.73B | 19.92B | 20.08B | 19.71B | 17.78B |
Cash Flow | |||||
| Free Cash Flow | 2.49B | 2.65B | 654.00M | 1.49B | 2.37B |
| Operating Cash Flow | 3.12B | 3.25B | 1.25B | 2.14B | 3.08B |
| Investing Cash Flow | -2.33B | -684.00M | -217.00M | -479.00M | -1.26B |
| Financing Cash Flow | 171.00M | -1.65B | -1.89B | -1.29B | -1.48B |
Henkel AG Technical Analysis
Neutral
18.27
Price Trends
17.97
Positive
17.95
Positive
18.49
Negative
Market Momentum
0.08
Positive
50.74
Neutral
24.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HENKY, the sentiment is Neutral. The current price of 18.27 is above the 20-day moving average (MA) of 18.04, above the 50-day MA of 17.97, and below the 200-day MA of 18.49, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 50.74 is Neutral, neither overbought nor oversold. The STOCH value of 24.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HENKY.
Henkel AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $31.54B | 14.12 | 9.75% | 3.13% | 0.39% | 52.46% | |
71 Outperform | $146.10B | 23.95 | 30.53% | 3.48% | 1.99% | -10.59% | |
70 Outperform | $23.79B | 41.45 | 13.35% | 1.22% | 2.18% | -26.08% | |
68 Neutral | $42.32B | 17.38 | 229.84% | 3.95% | -3.12% | 34.80% | |
66 Neutral | $70.38B | 24.59 | 977.07% | 2.40% | 0.98% | 12.12% | |
65 Neutral | $363.64B | 24.63 | 30.29% | 2.73% | -0.16% | 2.74% | |
65 Neutral | $27.01B | 15.34 | -4.26% | 3.22% | 1.00% | 3.39% |
* Consumer Defensive Sector Average
Performance Comparison
HENKY
Henkel AG
18.27
-1.51
-7.63%
CHD
Church & Dwight
96.60
-2.90
-2.91%
CL
Colgate-Palmolive
86.84
-8.96
-9.35%
KMB
Kimberly Clark
127.53
-11.60
-8.34%
PG
Procter & Gamble
155.10
-9.00
-5.48%
UL
Unilever
59.70
3.38
6.00%
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.