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Henkel AG and CO. (HENKY)
:HENKY
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Henkel AG
(OTC:HENKY)
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Rating:74Outperform
Price Target:
$21.00
▲(9.60% Upside)
Henkel AG's overall stock score of 74 reflects its strong financial health and reasonable valuation, which are slightly offset by mixed technical indicators and cautious earnings guidance. The company's robust profitability and solid balance sheet are significant strengths, while modest growth projections and technical analysis suggest potential challenges.
Henkel AG (HENKY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.32B
Dividend Yield2.04%
Average Volume (3M)3.60K
Price to Earnings (P/E)14.1
Beta (1Y)0.24
Revenue Growth-0.51%
EPS GrowthN/A
CountryUS
Employees47,150
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.41
Shares Outstanding1,039,183,500
10 Day Avg. Volume6,870
30 Day Avg. Volume3,604
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 Cap0.94
Enterprise Value/Revenue1.48
Enterprise Value/Gross Profit2.91
Enterprise Value/Ebitda9.73
Forecast
1Y Price Target
$25.20Price Target Upside31.52% 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: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mixed performance for Henkel. While there were notable achievements such as positive Q2 growth, strong EBIT margin expansion, and successful innovations, there were also significant challenges, including flat H1 growth, negative impacts from divestments, and foreign exchange headwinds.Q2-2025 Updates
Positive Updates
Positive Organic Sales Growth in Q2
Henkel achieved positive organic sales growth in Q2 driven by a clear volume improvement of more than 400 basis points in Consumer Brands, alongside positive pricing.
Strong EBIT Margin Increase
Henkel recorded a strong EBIT margin increase, driven by very strong gross margins while maintaining appropriate investment levels. The adjusted EBIT margin showed a strong increase by 60 basis points to 15.5% for the group.
EPS Growth at Constant Currencies
EPS at constant currencies grew strongly by 5% versus the prior year, a good achievement given the strong 2024 baseline.
Successful Share Buyback
Henkel's share buyback announced in Q1 is well underway, with shares worth more than EUR 400 million bought back by June 30.
Innovation and Sustainability in Adhesive Technologies
Henkel is leveraging growth opportunities through sustainable innovations and establishing a global network of battery engineering centers to support the full battery development cycle.
Strong Performance in Hydrogen Market
Henkel's thread sealant tested for hydrogen compatibility is setting high standards in the hydrogen industry, contributing to an estimated market of more than EUR 100 million by 2030.
Consumer Brands Top 10 Growth
The top 10 Consumer Brands delivered more than 3% organic sales growth in Q2, driven by a balanced development in both price and volume.
Negative Updates
Flat Organic Sales Growth in H1
Overall organic sales growth in the first half was flat, with volumes below the prior year, partly due to pronounced customer destocking in North America and supply chain challenges in Q1.
Negative Impact from Divestments
Acquisitions and divestments negatively impacted sales by 0.9%, mainly driven by the divestment of the Retailer Brands business in North America.
Foreign Exchange Headwind
Foreign exchange was a headwind of minus 2.8% in the first half, with expectations for the full year headwind to be in the low to mid-single-digit percentage range.
Volume Declines in Consumer Brands
Consumer Brands faced a 1.6% decline in organic sales growth in H1, reflecting high prior year comparables and challenges from customer destocking and supply chain issues.
Weak Performance in North America
Henkel's business in North America saw a sales decline of 3.4% in the first half, impacted by muted consumer sentiment and customer destocking.
Company Guidance
During Henkel's half-year 2025 results call, key metrics highlighted included a flat organic sales growth in the first half, with a positive turn in Q2 driven by a 400 basis points volume improvement in Consumer Brands. Adhesive Technologies also experienced positive sales growth due to favorable pricing and volume. The working day-adjusted organic sales growth for H1 would have surpassed 2%. Henkel achieved a strong EBIT margin increase, attributed to improved gross margins while maintaining investment levels to support growth. EPS at constant currencies rose by 5% from the previous year. The share buyback initiated in Q1 was progressing swiftly, with over EUR 400 million worth of shares repurchased by June 30. The company updated its 2025 guidance, projecting organic sales growth of 1% to 2%, an adjusted EBIT margin of 14.5% to 15.5%, and a low to high single-digit percentage increase in adjusted EPS at constant exchange rates.Henkel AG Financial Statement Overview
Summary
Henkel AG shows strong profitability with robust margins and a healthy balance sheet characterized by low leverage. However, stagnant revenue growth and a decline in free cash flow growth suggest challenges in market expansion and 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
Positive
19.16
Price Trends
19.11
Positive
18.64
Positive
18.41
Positive
Market Momentum
0.04
Negative
58.29
Neutral
94.55
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 19.16 is above the 20-day moving average (MA) of 18.74, above the 50-day MA of 19.11, and above the 200-day MA of 18.41, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 58.29 is Neutral, neither overbought nor oversold. The STOCH value of 94.55 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $356.22B | 23.39 | 31.81% | 2.73% | 1.23% | 18.02% | |
74 Outperform | $33.32B | 14.13 | 9.98% | 2.04% | -0.51% | ― | |
73 Outperform | $151.98B | 25.44 | 28.36% | 3.17% | -0.30% | -14.60% | |
68 Neutral | $63.40B | 22.05 | 705.21% | 2.64% | 0.05% | 3.55% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
59 Neutral | $28.96B | 20.50 | 13.56% | 5.48% | -2.15% | 26.65% | |
57 Neutral | $39.88B | 16.37 | 196.26% | 4.20% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
HENKY
Henkel AG
19.12
-0.56
-2.85%
CL
Colgate-Palmolive
78.00
-15.48
-16.56%
KMB
Kimberly Clark
118.93
-11.77
-9.01%
PG
Procter & Gamble
152.49
-12.45
-7.55%
UL
Unilever
62.67
2.16
3.57%
KVUE
Kenvue, Inc.
15.00
-7.05
-31.97%
Henkel AG Corporate Events
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.