Henkel AG (HENKY) AI Stock Analysis

• Market Cap: $33.05B
• Dividend Yield: 2.04%
• Average Volume (3M): 8.81K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.19
• Revenue Growth: -0.51%
• EPS Growth: N/A
• Country: US
• Employees: 47,150
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Household & Personal Products
• EPS (TTM): 0.37
• Shares Outstanding: 1,039,183,500
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 8,812
• PEG Ratio: 0.29
• Price to Book (P/B): 1.43
• Price to Sales (P/S): 1.44
• P/FCF Ratio: 12.46
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 1.25
• Enterprise Value/Gross Profit: 2.47
• Enterprise Value/Ebitda: 8.24
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• 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.

Positive Factors

Strong Financial Health

Henkel's strong profitability and low leverage indicate financial stability, allowing it to withstand economic fluctuations and invest in growth opportunities.

Consumer Brands Merger

The early completion of the Consumer Brands merger with significant cost savings enhances operational efficiency and strengthens Henkel's market position.

Innovation in Laundry Care

Successful product innovations in laundry care demonstrate Henkel's ability to adapt to consumer trends, supporting long-term market share growth.

Negative Factors

Stagnant Revenue Growth

Stagnant revenue growth suggests challenges in expanding market share, which could limit future profitability and competitive positioning.

Pricing Pressure in Consumer Brands

Pricing pressures in Consumer Brands, especially in Europe, could impact margins and profitability, necessitating strategic adjustments to maintain competitiveness.

Challenging Automotive Market

Challenges in the Automotive sector may hinder growth in Adhesive Technologies, affecting overall revenue and necessitating diversification efforts.

Henkel AG Business Overview & Revenue Model

Company Description

Henkel AG is a global leader in consumer and industrial products, headquartered in Düsseldorf, Germany. The company operates through three main business sectors: Adhesive Technologies, Beauty Care, and Home Care. Henkel's diverse portfolio includes well-known brands such as Persil, Schwarzkopf, Loctite, and Pritt, which cater to both retail and professional markets. With a strong emphasis on sustainability and innovation, Henkel develops products that enhance the quality of life and improve efficiency across various applications.

How the Company Makes Money

Henkel generates revenue through its diverse product offerings across three primary sectors. The Adhesive Technologies segment is the largest revenue contributor, providing industrial adhesives, sealants, and surface treatments to a range of industries, including automotive, electronics, and packaging. The Beauty Care segment includes hair care, skin care, and personal hygiene products that are sold through retail channels. Home Care focuses on laundry detergents, household cleaners, and dishwashing products. Henkel’s revenue model is bolstered by strong brand recognition and market presence, along with significant partnerships with retailers and distributors worldwide. Additionally, the company invests in research and development to innovate and enhance product efficiency, which helps maintain competitive advantage and drive sales growth.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 19.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 19.00, above the 50-day MA of 19.00, and above the 200-day MA of 18.42, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 54.93 is Neutral, neither overbought nor oversold. The STOCH value of 1.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HENKY.

Henkel AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HENKY	74 Outperform	$33.05B	14.16	9.98%	2.04%	-0.51%	―
UL	73 Outperform	$142.53B	24.01	28.36%	3.74%	-0.30%	-14.60%
KVUE	73 Outperform	$32.94B	23.10	13.47%	4.85%	-2.94%	34.54%
PG	69 Neutral	$338.22B	21.13	31.90%	2.92%	1.23%	17.97%
CL	63 Neutral	$64.27B	22.34	450.35%	2.67%	-0.05%	2.49%
KMB	63 Neutral	$33.52B	17.11	136.87%	5.03%	-10.04%	-23.41%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Henkel AG Corporate Events

Henkel Reports Solid Q3 Growth Amid Market Challenges

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

Henkel AG & CO. Earnings Call Reveals Mixed Performance Amidst Macroeconomic Challenges