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Henkel AG and CO. (HENKY)
OTHER OTC:HENKY
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Henkel AG
(OTC:HENKY)
Rating:77Outperform
Price Target:
$21.00
▲(13.27% Upside)
Henkel AG (HENKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.28B
Dividend Yield3.08%
Average Volume (3M)10.60K
Price to Earnings (P/E)13.7
Beta (1Y)0.25
Revenue Growth-0.51%
EPS GrowthN/A
CountryUS
Employees47,150
SectorConsumer Defensive
Sector Strength68
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,039,183,500
10 Day Avg. Volume6,583
30 Day Avg. Volume10,601
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda9.83
Forecast
1Y Price Target
$21.00Price Target Upside13.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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:Aug 07, 2025
(Q2-2025)
| % Change Since: 3.23%|
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed performance for Henkel in the first half of 2025. While there were positive developments in Adhesive Technologies and strong EBIT margin improvements, the flat organic sales growth and challenges in North America and Consumer Brands volume decline highlighted ongoing challenges in the macroeconomic environment.Q2-2025 Updates
Positive Updates
Adhesive Technologies Positive Growth
Adhesive Technologies saw positive pricing and volume development, leading to an organic sales growth of 1.2% in H1 2025, with a slight increase in organic sales growth in Q2.
Strong EBIT Margin Increase
Henkel recorded a strong EBIT margin increase driven by very strong gross margins and favorable mix, reaching 15.5% for the group, a 60 basis point improvement.
Consumer Brands Top 10 Growth
Henkel's top 10 Consumer Brands showed more than 3% organic sales growth driven by a balanced development in both price and volume.
Successful Share Buyback
Henkel's share buyback program, announced in Q1 2025, is well underway with shares worth more than EUR 400 million already bought back by June 30.
EPS Growth
EPS at constant currencies grew strongly by 5% versus the prior year, a solid achievement given the strong 2024 baseline.
Negative Updates
Flat Organic Sales Growth
Organic sales growth in the first half of 2025 was flat, reflecting high prior year comparables and macroeconomic challenges.
Challenges in North America
The Consumer Brands segment in North America was impacted by subdued consumer sentiment and customer destocking, particularly in Q1.
Negative Impact from Foreign Exchange
Foreign exchange was a headwind of minus 2.8% in the first half of 2025, with expectations of a low to mid-single-digit percentage range impact for the full year.
Consumer Brands Volume Decline
Consumer Brands experienced a volume decline of 1.6% in H1 2025 due to supply chain challenges and high prior year comparables.
Company Guidance
During Henkel's half-year 2025 results call, the company provided updated guidance, reflecting a narrowed range for organic sales growth of 1% to 2% for the full year. The adjusted EBIT margin is expected to be between 14.5% and 15.5%, while adjusted EPS growth at constant currencies is anticipated to increase in the low to high single-digit percentage range. The company highlighted positive developments in Q2, such as an increased EBIT margin and strong EPS growth at constant currencies by 5% year-over-year. Henkel also emphasized its strategic initiatives, including driving innovation across Consumer Brands and Adhesive Technologies, with a focus on sustainable solutions and leveraging global trends. The company remains optimistic about the second half of the year, anticipating stronger top-line performance, and has been executing a share buyback program, with over EUR 400 million worth of shares repurchased by June 30, 2025.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
Positive
18.54
Price Trends
18.16
Positive
17.83
Positive
18.33
Positive
Market Momentum
0.13
Negative
66.36
Neutral
96.33
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HENKY, the sentiment is Positive. The current price of 18.54 is above the 20-day moving average (MA) of 18.31, above the 50-day MA of 18.16, and above the 200-day MA of 18.33, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 66.36 is Neutral, neither overbought nor oversold. The STOCH value of 96.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HENKY.
Henkel AG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $32.28B | 13.68 | 9.98% | 3.08% | -0.51% | ― | |
73 Outperform | $359.58B | 23.59 | 31.23% | 2.66% | 0.29% | 7.85% | |
73 Outperform | $148.39B | 24.86 | 28.36% | 3.19% | -0.30% | -14.60% | |
69 Neutral | ¥221.48B | 21.96 | 8.23% | 2.17% | 4.79% | -1.36% | |
64 Neutral | $22.33B | 43.23 | 12.07% | 1.26% | 1.13% | -34.78% | |
63 Neutral | $68.25B | 23.74 | 705.21% | 2.42% | 0.05% | 3.55% | |
61 Neutral | $45.18B | 18.77 | 196.26% | 3.70% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
Performance Comparison
HENKY
Henkel AG
19.05
0.12
0.63%
CHD
Church & Dwight
91.66
-7.39
-7.46%
CL
Colgate-Palmolive
84.97
-13.41
-13.63%
KMB
Kimberly Clark
133.64
<0.01
<0.01%
PG
Procter & Gamble
155.09
-8.07
-4.95%
UL
Unilever
60.90
1.57
2.65%
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.