Henkel AG (HENKY) AI Stock Analysis

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Henkel AG

(OTC:HENKY)

Rating:77Outperform

Price Target:

$20.00

▲(14.35%Upside)

Henkel AG's overall stock score of 77 reflects its strong financial health and fair valuation. The earnings call provided a cautiously optimistic outlook despite challenges, contributing positively to the score. Technical analysis suggests some short-term weakness, which slightly tempers the overall assessment.

Henkel AG (HENKY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$30.36B

Dividend Yield3.26%

Average Volume (3M)1.80K

Price to Earnings (P/E)13.5

Beta (1Y)0.26

Revenue Growth0.39%

EPS Growth52.46%

CountryUS

Employees47,150

SectorConsumer Defensive

Sector Strength66

IndustryHousehold & Personal Products

Share Statistics

EPS (TTM)0.39

Shares Outstanding1,039,183,500

10 Day Avg. Volume0

30 Day Avg. Volume1,798

Financial Highlights & Ratios

PEG Ratio-0.44

Price to Book (P/B)0.49

Price to Sales (P/S)0.00

P/FCF Ratio3.66

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Henkel AG Business Overview & Revenue Model

Company DescriptionHenkel 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 MoneyHenkel AG generates revenue through its diversified portfolio across three main business sectors, each contributing significantly to its financial performance. The Adhesive Technologies division is the largest revenue generator, serving industrial clients with customized adhesive solutions for various applications. The Beauty Care division earns revenue by selling consumer products like shampoos, conditioners, and skin care products under various brand names. The Laundry & Home Care division contributes to revenue through the sale of household products, such as detergents and cleaning agents, under popular brands like Persil and Pril. Henkel's revenue model is supported by strong brand recognition, a broad geographic presence, and strategic partnerships with retailers and industrial clients, enabling the company to maintain a robust market position.

Henkel AG Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: -1.30%|

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 strong profitability and a solid balance sheet with low leverage. However, stagnant revenue growth and a slight decline in free cash flow growth suggest challenges in market expansion and operational efficiency.

Income Statement

Very Positive

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.

Balance Sheet

Positive

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.

Cash Flow

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
21.51B	21.59B	21.51B	22.40B	20.07B	19.25B
	Gross Profit
9.84B	10.82B	9.66B	9.37B	8.97B	8.87B
	EBIT
2.68B	2.83B	2.01B	1.81B	2.21B	2.02B
	EBITDA
3.18B	3.68B	2.92B	2.64B	3.18B	3.10B
	Net Income Common Stockholders
1.32B	2.01B	1.32B	1.26B	1.63B	1.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.91B	3.53B	2.25B	1.40B	2.46B	2.22B
	Total Assets
31.41B	35.27B	31.73B	33.18B	32.67B	30.25B
	Total Debt
4.38B	4.29B	2.89B	3.58B	3.44B	3.64B
	Net Debt
2.92B	1.40B	941.00M	2.50B	1.32B	1.92B
	Total Liabilities
12.80B	13.45B	11.73B	13.02B	12.88B	12.37B
	Stockholders Equity
18.52B	21.73B	19.92B	20.08B	19.71B	17.78B
Cash Flow		Free Cash Flow
2.65B	2.49B	2.65B	654.00M	1.49B	2.37B
	Operating Cash Flow
3.25B	3.12B	3.25B	1.25B	2.14B	3.08B
	Investing Cash Flow
-684.00M	-2.33B	-684.00M	-217.00M	-479.00M	-1.26B
	Financing Cash Flow
-1.75B	171.00M	-1.65B	-1.89B	-1.29B	-1.48B

Henkel AG Technical Analysis

Technical Analysis Sentiment

Negative

Last Price17.49

Price Trends

50DMA

17.65

Negative

100DMA

18.09

Negative

200DMA

18.66

Negative

Market Momentum

MACD

-0.03

Positive

RSI

38.90

Neutral

STOCH

0.34

Positive

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 17.49 is below the 20-day moving average (MA) of 18.00, below the 50-day MA of 17.65, and below the 200-day MA of 18.66, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 38.90 is Neutral, neither overbought nor oversold. The STOCH value of 0.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
HENKY	77 Outperform	$30.36B	13.51	9.75%	3.26%	0.39%	52.46%
UL	76 Outperform	$151.81B	24.92	30.53%	3.35%	1.99%	-10.59%
PG	74 Outperform	$372.97B	25.27	30.29%	2.66%	-0.16%	2.74%
KMB	68 Neutral	$42.46B	17.44	229.84%	3.94%	-3.12%	34.80%
CHD	65 Neutral	$23.62B	41.14	13.35%	1.23%	2.18%	-26.08%
Sector *	65 Neutral	$8.75B	15.13	4.69%	4.84%	3.64%	-2.51%
CL	64 Neutral	$71.47B	24.97	977.07%	2.37%	0.98%	12.12%

* Consumer Defensive Sector Average

Performance Comparison

HENKY

Henkel AG

17.49

-1.86

-9.61%

CHD

Church & Dwight

96.43

-9.83

-9.25%

Colgate-Palmolive

87.78

-9.12

-9.41%

KMB

Kimberly Clark

128.29

-6.55

-4.86%

Procter & Gamble

159.08

-5.35

-3.25%

Unilever

61.27

6.76

12.40%

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.