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Henkel AG (HENKY)
OTHER OTC:HENKY
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Henkel AG
(OTC:HENKY)
75Outperform
Henkel AG (HENKY) vs. S&P 500 (SPY)
Market Cap
$31.09B
Dividend Yield1.97%
Average Volume (3M)2.29K
Price to Earnings (P/E)13.8
Beta (1Y)0.32
Revenue Growth0.39%
EPS Growth52.46%
CountryUS
Employees47,150
SectorConsumer Defensive
Sector Strength90
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)1.29
Shares Outstanding1,039,183,500
10 Day Avg. Volume0
30 Day Avg. Volume2,290
Financial Highlights & Ratios
PEG Ratio0.26
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 is a global leader in both consumer and industrial sectors, specializing in three primary business areas: Adhesive Technologies, Beauty Care, and Laundry & Home Care. Founded in 1876 and headquartered in Düsseldorf, Germany, Henkel operates in over 75 countries worldwide. The Adhesive Technologies division serves industries such as automotive, electronics, and packaging, providing high-performance adhesives, sealants, and functional coatings. The Beauty Care division offers a wide range of hair and body care products, while the Laundry & Home Care division includes well-known brands for cleaning and laundry needs.
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 Financial Statement Overview
Summary
Henkel AG shows robust financial health with strong profitability margins and a solid balance sheet characterized by low leverage. However, revenue and free cash flow growth have been modest, indicating potential challenges in expanding market share.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 | ||||
| 21.51B | 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 | ||||
| 1.33B | 3.53B | 2.25B | 1.40B | 2.46B | 2.22B | Total Assets |
| 29.56B | 35.27B | 31.73B | 33.18B | 32.67B | 30.25B | Total Debt |
| 4.17B | 4.29B | 2.89B | 3.58B | 3.44B | 3.64B | Net Debt |
| 3.11B | 1.40B | 941.00M | 2.50B | 1.32B | 1.92B | Total Liabilities |
| 12.56B | 13.45B | 11.73B | 13.02B | 12.88B | 12.37B | Stockholders Equity |
| 16.91B | 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
Negative
17.04
Price Trends
18.95
Negative
19.02
Negative
19.52
Negative
Market Momentum
-0.40
Positive
36.44
Neutral
32.47
Neutral
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 17.04 is below the 20-day moving average (MA) of 18.08, below the 50-day MA of 18.95, and below the 200-day MA of 19.52, indicating a bearish trend. The MACD of -0.40 indicates Positive momentum. The RSI at 36.44 is Neutral, neither overbought nor oversold. The STOCH value of 32.47 is Neutral, 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 (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $74.34B | 26.12 | 704.02% | 2.24% | 3.30% | 26.83% | |
78 Outperform | $383.97B | 26.09 | 31.05% | 2.51% | 0.49% | 5.02% | |
76 Outperform | $150.33B | 24.04 | 30.53% | 3.21% | 1.99% | -10.59% | |
75 Outperform | $31.09B | 13.78 | 9.75% | 1.97% | 0.39% | 52.46% | |
74 Outperform | $25.24B | 43.26 | 14.25% | 1.12% | 4.08% | -22.34% | |
71 Outperform | $44.62B | 17.82 | 290.03% | 3.66% | -1.83% | 45.13% | |
62 Neutral | $19.87B | 13.65 | -16.14% | 3.29% | 1.16% | 3.90% |
* Consumer Defensive Sector Average
Performance Comparison
HENKY
Henkel AG
17.04
-0.42
-2.41%
CHD
Church & Dwight
101.60
0.81
0.80%
CL
Colgate-Palmolive
88.60
2.82
3.29%
KMB
Kimberly Clark
133.28
9.74
7.88%
PG
Procter & Gamble
158.39
5.50
3.60%
UL
Unilever
57.90
11.03
23.53%
Henkel AG Earnings Call Summary
Earnings Call Date: Mar 11, 2025 | % Change Since: -19.17% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong overall performance in 2024 with significant achievements in organic growth, margin improvement, and strategic portfolio optimization. Despite a challenging start anticipated for 2025, Henkel has shown resilience through strong free cash flow, robust EPS growth, and successful M&A activities. However, challenges remain, particularly in North America and the industrial market, which could impact performance in the early part of 2025.Highlights
Strong Organic Sales Growth
Henkel delivered an overall strong top and bottom line performance with a 2.6% organic sales growth at the group level. Adhesive Technologies and Consumer Brands businesses contributed with 2.4% and 3% organic sales growth respectively.
Record Gross Margin
Henkel recorded the highest gross margin in more than 30 years at 50.6%, representing an increase of almost 500 basis points versus the prior year.
Successful Portfolio Optimization
Henkel concluded the portfolio optimization measures ahead of schedule, achieving targeted savings of EUR 525 million by the end of 2024, and completed the integration of Consumer Brands.
Strong Free Cash Flow and EPS Growth
Henkel reported a very strong free cash flow of EUR 2.4 billion and a double-digit adjusted EPS growth of 25%.
Proposed Dividend Increase and Share Buyback
Henkel proposed a 10% increase in the dividend to EUR 2.04 per preferred share and announced a new share buyback program of up to EUR 1 billion.
Successful M&A Activities
Henkel made strategic acquisitions including Critica Infrastructure, Seal For Life, and Vidal Sassoon, which are expected to contribute positively to top line growth in 2025.
Sustainability Advancements
Henkel published new net-zero targets validated by the Science Based Targets initiative, aiming for net-zero greenhouse gas emissions by 2045.
Lowlights
Q1 2025 Slow Start Anticipated
Henkel expects a weaker start to 2025 in Q1 due to subdued market growth in selected markets and high prior year top and bottom line comparables.
Challenges in North America
Both Adhesive Technologies and Consumer Brands faced challenges in North America, with Consumer Brands impacted by portfolio optimization and Adhesive Technologies by a challenging industrial market.
Softening Industrial Market
There was a noticeable softening in the industrial market, particularly in the automotive segment, affecting Adhesive Technologies' performance in late 2024 and into early 2025.
Company Guidance
During the Henkel Full Year 2024 Results Conference Call, the company provided guidance for 2025, indicating expectations for continued top and bottom line growth despite a challenging environment. Henkel anticipates organic sales growth between 1.5% and 3.5% for the group, with Adhesive Technologies expected to grow by 2% to 4% and Consumer Brands by 1% to 3%. The company projects an adjusted EBIT margin between 14% and 15.5%, with Adhesive Technologies targeting 16% to 17.5% and Consumer Brands aiming for 13.5% to 15%. Henkel also foresees a low to high single-digit percentage increase in adjusted EPS at constant exchange rates. The company expects H2 to be stronger than H1, with a weaker start in Q1 due to subdued market growth and high comparables from the previous year. The call emphasized Henkel's strong financial position, supported by a robust free cash flow of EUR 2.4 billion, and announced a proposed 10% dividend increase and a share buyback of up to EUR 1 billion.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.