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Henkel AG and CO. (HENKY)
:HENKY
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Henkel AG
(OTC:HENKY)74Outperform
Henkel AG (HENKY) vs. S&P 500 (SPY)
Market Cap
$35.94B
Dividend Yield1.66%
Average Volume (3M)151.72K
Price to Earnings (P/E)17.3
Beta (1Y)0.43
Revenue Growth-1.29%
EPS Growth36.00%
CountryUS
Employees51,200
SectorConsumer Defensive
Sector Strength73
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)1.15
Shares Outstanding1,039,183,500
10 Day Avg. Volume83,371
30 Day Avg. Volume151,715
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)N/A
Price to Sales (P/S)1.30
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
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 engages in the manufacture and distribution of home and beauty care products and provides adhesive solutions. It operates through the following business segments: Adhesives for Consumers, Craftsmen and Building; Industrial Adhesives; Beauty Care; and Laundry and Home Care. The Adhesives for Consumers, Craftsmen and Building segment offers products for private users, craftsmen, and construction industry based on international brand platforms, namely Loctite, Pritt, Pattex and Ceresit. The Industrial Adhesives segment covers packaging and consumer goods adhesives, transport and metal, general industry, and electronics. The Beauty Care segment comprises of hair care, hair colorants, hair styling, body care, skin care, and oral care, and hair salon. The Laundry and Home Care segment detergents but also fabric softeners, laundry performance enhancers, and fabric care products. The company was founded by Fritz Henkel on September 26, 1876 and is headquartered in Düsseldorf, Germany.
How the Company Makes MoneyHenkel makes money primarily through the sale of its diverse range of products across its three main business sectors. The Adhesive Technologies division is the largest revenue generator, supplying adhesives, sealants, and functional coatings to various industries, including automotive, electronics, packaging, and construction. The Beauty Care sector generates revenue through the sale of hair care, styling, and coloration products, as well as skin and oral care products, targeted at both consumers and professionals. The Laundry & Home Care segment earns revenue from household brands that produce laundry detergents, fabric softeners, and cleaning products. Henkel's revenue model is supported by a strong brand portfolio, continuous innovation, and strategic acquisitions. The company also benefits from significant partnerships and collaborations with industrial and retail partners worldwide, which help expand its market reach and distribution network.
Henkel AG Financial Statement Overview
Summary
Henkel AG's financial performance reflects a well-managed company with strengths in cash flow generation and balance sheet stability. Despite facing challenges in revenue growth, Henkel's operational efficiency supports steady profitability. The company's low leverage and strong equity base contribute to financial resilience, while its robust cash flow position enhances its ability to invest and return value to shareholders. Continued focus on revenue growth and improving returns can further strengthen Henkel's financial health.Income Statement
Henkel AG demonstrates moderate financial performance with stable gross profit margins and consistent net income growth. The gross profit margin for 2023 stands at 44.9%, a slight improvement from previous years, indicating efficient cost management. However, the net profit margin has decreased slightly to 6.12% in 2023 from 5.62% in 2022. Revenue growth rate shows a decline of 3.94% from 2022 to 2023, suggesting challenges in top-line growth. EBIT and EBITDA margins remained stable, reflecting consistent operational efficiency.75
Positive
Balance Sheet
The balance sheet of Henkel AG reflects a strong equity base with an equity ratio of 62.8% in 2023, indicating financial stability. The debt-to-equity ratio is relatively low at 0.15, showcasing prudent leverage management. Return on Equity (ROE) is at 6.62%, slightly lower than the previous year, indicating room for improvement in shareholder returns. The company maintains a solid balance between debt and equity, providing a stable financial foundation.70
Positive
Cash Flow
Henkel AG exhibits strong cash flow management with significant improvement in free cash flow to net income ratio at 2.01 in 2023, showing enhanced cash generation efficiency. Operating cash flow increased to €3.26 billion, representing a 161% increase from 2022, indicating robust cash generation capabilities. The free cash flow growth rate is substantial, driven by higher operating cash flow and controlled capital expenditures.80
Positive
| Breakdown | ||||
| Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 21.51B | 22.40B | 20.07B | 19.25B | 20.11B | Gross Profit |
| 9.66B | 9.37B | 8.97B | 8.87B | 9.19B | EBIT |
| 2.01B | 1.81B | 2.21B | 2.02B | 3.16B | EBITDA |
| 2.92B | 2.64B | 3.18B | 3.10B | 3.67B | Net Income Common Stockholders |
| 1.32B | 1.26B | 1.63B | 1.41B | 2.08B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.25B | 1.40B | 2.46B | 2.22B | 1.91B | Total Assets |
| 31.73B | 33.18B | 32.67B | 30.25B | 31.94B | Total Debt |
| 2.89B | 3.58B | 3.44B | 3.64B | 4.51B | Net Debt |
| 941.00M | 2.50B | 1.32B | 1.92B | 3.02B | Total Liabilities |
| 11.73B | 13.02B | 12.88B | 12.37B | 13.33B | Stockholders Equity |
| 19.92B | 20.08B | 19.71B | 17.78B | 18.52B |
| Cash Flow | Free Cash Flow | |||
| 2.65B | 654.00M | 1.49B | 2.37B | 2.49B | Operating Cash Flow |
| 3.25B | 1.25B | 2.14B | 3.08B | 3.17B | Investing Cash Flow |
| -684.00M | -217.00M | -479.00M | -1.26B | -1.48B | Financing Cash Flow |
| -1.65B | -1.89B | -1.29B | -1.48B | -1.30B |
Henkel AG Technical Analysis
Positive
19.91
Price Trends
19.25
Positive
19.38
Positive
19.70
Positive
Market Momentum
0.17
Negative
71.97
Negative
99.91
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 19.91 is above the 20-day moving average (MA) of 19.40, above the 50-day MA of 19.25, and above the 200-day MA of 19.70, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 71.97 is Negative, neither overbought nor oversold. The STOCH value of 99.91 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $406.08B | 27.59 | 31.05% | 2.32% | 0.49% | 5.02% | |
74 Outperform | $35.94B | 17.32 | 8.92% | 1.66% | -1.29% | 36.00% | |
74 Outperform | $27.23B | 46.70 | 13.42% | 1.03% | 4.08% | -22.34% | |
74 Outperform | $73.90B | 25.95 | 1362.74% | 2.20% | 3.30% | 26.83% | |
71 Outperform | $46.81B | 18.69 | 302.98% | 3.46% | -1.83% | 45.13% | |
63 Neutral | $20.85B | 13.27 | -10.88% | 7.48% | 1.13% | 11.50% | |
50 Neutral | $24.49B | 147.29 | -16.79% | 2.97% | 0.07% | -249.21% |
* Consumer Defensive Sector Average
Performance Comparison
HENKY
Henkel AG
20.59
3.59
21.12%
CHD
Church & Dwight
110.66
9.33
9.21%
CL
Colgate-Palmolive
91.75
6.43
7.54%
EL
The Estée Lauder Companies
71.91
-70.29
-49.43%
KMB
Kimberly Clark
141.63
21.22
17.62%
PG
Procter & Gamble
174.61
18.88
12.12%
Henkel AG Earnings Call Summary
Earnings Call Date: Nov 6, 2024 | % Change Since: -0.25% | Next Earnings Date: Mar 11, 2025
Earnings Call Sentiment Positive
Henkel demonstrated strong performance with continued growth and strategic advancements, especially in Adhesive Technologies and sustainability. However, challenges in North America and Consumer Brands' volumes were notable concerns.Highlights
Strong Organic Sales Growth
Henkel delivered strong organic sales growth of 3.3% at the group level, with Adhesive Technologies growing by 3.7% and Consumer Brands by 2.7%.
Adhesive Technologies Outperform Market
Adhesive Technologies achieved organic sales growth of 3.7%, surpassing the Industrial Production Index (IPX) increase of 1.1%.
Consumer Brand Valorization
Henkel's top 10 consumer brands showed high single-digit organic sales growth, supported by strong marketing and tech-driven innovations.
Sustainability Ambitions
Henkel launched a net-zero roadmap with targets validated by the Science Based Targets initiative, aiming for net-zero emissions by 2045.
Lowlights
North America Challenges
Both Adhesive Technologies and Consumer Brands faced challenges in North America, with Consumer Brands still impacted by portfolio optimization.
Volume Decline in Consumer Brands
Consumer Brands saw a volume decline, with a negative impact from portfolio measures accounting for 1.7%.
Laundry & Home Care Pressure
Laundry & Home Care in North America were notably impacted by portfolio pruning activities, affecting market share.
Company Guidance
During the Q3 2024 earnings call for Henkel (HEN3.DE), the executives provided a comprehensive overview of the company's performance and outlook. Henkel reported a strong organic sales growth of 3.3% at the group level, with Adhesive Technologies achieving 3.7% and Consumer Brands growing by 2.7%. The company highlighted its robust pricing strategy, which contributed positively across both divisions, and noted that the volume expansion in adhesives was a key strength, supported by a diverse portfolio. Despite challenges in some markets, Henkel's gross and EBIT margins remained strong, and increased investments in brands and businesses were maintained. The company reiterated its full-year guidance, aiming for an organic sales growth of 2.5% to 4.5%, with adjusted EBIT margins between 13.5% and 14.5%, and expected to reach the upper half of the adjusted EPS growth range of 20% to 30%. Henkel's strategic priorities, including portfolio optimization and sustainability initiatives, were emphasized as drivers of future growth and resilience.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.