HENKEL AG & CO KGAA (HEN.DE) Stock Fundamental Analysis
FRA:HEN - Deutsche Boerse Ag - DE0006048408 - Common Stock - Currency: EUR
Taking everything into account, HEN scores 5 out of 10 in our fundamental rating. HEN was compared to 7 industry peers in the Household Products industry. HEN has a great financial health rating, but its profitability evaluates not so good. HEN has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
HEN had positive earnings in the past year.
HEN had a positive operating cash flow in the past year.
Each year in the past 5 years HEN has been profitable.
In the past 5 years HEN always reported a positive cash flow from operatings.
1.2 Ratios
HEN's Return On Assets of 4.15% is on the low side compared to the rest of the industry. HEN is outperformed by 71.43% of its industry peers.
HEN has a Return On Equity of 6.62%. This is in the lower half of the industry: HEN underperforms 71.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.89%, HEN is doing worse than 71.43% of the companies in the same industry.
HEN had an Average Return On Invested Capital over the past 3 years of 7.10%. This is significantly below the industry average of 17.94%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 6.62% | ||
| ROIC | 6.89% |
ROA(3y)4.32%
ROA(5y)4.85%
ROE(3y)7.06%
ROE(5y)8.07%
ROIC(3y)7.1%
ROIC(5y)7.62%
1.3 Margins
HEN's Profit Margin of 6.13% is on the low side compared to the rest of the industry. HEN is outperformed by 71.43% of its industry peers.
HEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.59%, HEN is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Operating Margin of HEN has declined.
With a Gross Margin value of 45.75%, HEN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
HEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.59% | ||
| PM (TTM) | 6.13% | ||
| GM | 45.75% |
OM growth 3Y-0.73%
OM growth 5Y-7.24%
PM growth 3Y-5.74%
PM growth 5Y-12.01%
GM growth 3Y-0.69%
GM growth 5Y-0.31%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEN is still creating some value.
The number of shares outstanding for HEN has been reduced compared to 1 year ago.
HEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HEN has an improved debt to assets ratio.
2.2 Solvency
HEN has an Altman-Z score of 3.30. This indicates that HEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.30, HEN is doing worse than 71.43% of the companies in the same industry.
The Debt to FCF ratio of HEN is 0.86, which is an excellent value as it means it would take HEN, only 0.86 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of HEN (0.86) is better than 100.00% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that HEN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.09, HEN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.01
WACC6.84%
2.3 Liquidity
HEN has a Current Ratio of 1.20. This is a normal value and indicates that HEN is financially healthy and should not expect problems in meeting its short term obligations.
HEN has a better Current ratio (1.20) than 100.00% of its industry peers.
A Quick Ratio of 0.88 indicates that HEN may have some problems paying its short term obligations.
HEN's Quick ratio of 0.88 is amongst the best of the industry. HEN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HEN shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.65%.
The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
The Revenue has been growing slightly by 1.08% in the past year.
The Revenue has been growing slightly by 4.13% on average over the past years.
EPS 1Y (TTM)-9.65%
EPS 3Y0.43%
EPS 5Y4.39%
EPS Q2Q%N/A
Revenue 1Y (TTM)1.08%
Revenue growth 3Y2.43%
Revenue growth 5Y4.13%
Sales Q2Q%2.58%
3.2 Future
HEN is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.10% yearly.
HEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.45% yearly.
EPS Next Y-19.66%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
EPS Next 5Y0.1%
Revenue Next Year-4.4%
Revenue Next 2Y-0.2%
Revenue Next 3Y3.57%
Revenue Next 5Y1.45%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.34, the valuation of HEN can be described as very reasonable.
100.00% of the companies in the same industry are more expensive than HEN, based on the Price/Earnings ratio.
HEN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.12.
With a Price/Forward Earnings ratio of 13.27, HEN is valued correctly.
Based on the Price/Forward Earnings ratio, HEN is valued cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.42, HEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 13.27 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than HEN, based on the Enterprise Value to EBITDA ratio.
HEN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HEN is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.19 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
A cheap valuation may be justified as HEN's earnings are expected to decrease with -9.55% in the coming years.
PEG (NY)N/A
PEG (5Y)2.58
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
HEN has a Yearly Dividend Yield of 2.98%.
Compared to an average industry Dividend Yield of 3.08, HEN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, HEN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of HEN has a limited annual growth rate of 0.61%.
Dividend Growth(5Y)0.61%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
58.50% of the earnings are spent on dividend by HEN. This is a bit on the high side, but may be sustainable.
The dividend of HEN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP58.5%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
FRA:HEN (5/8/2025, 7:00:00 PM)
61.6
-0.75 (-1.2%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners33.92%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.98B
Analysts69.33
Price Target77.31 (25.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.83
Dividend Growth(5Y)0.61%
DP58.5%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-3.28%
Min Revenue beat(2)-3.51%
Max Revenue beat(2)-3.05%
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-0.29%
PT rev (3m)-0.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 13.27 | ||
| P/S | 1.25 | ||
| P/FCF | 10.19 | ||
| P/OCF | 8.29 | ||
| P/B | 1.35 | ||
| P/tB | 9.2 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)5.43
EY8.81%
EPS(NY)4.64
Fwd EY7.54%
FCF(TTM)6.04
FCFY9.81%
OCF(TTM)7.43
OCFY12.07%
SpS49.12
BVpS45.49
TBVpS6.69
PEG (NY)N/A
PEG (5Y)2.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.15% | ||
| ROE | 6.62% | ||
| ROCE | 9.5% | ||
| ROIC | 6.89% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 36.9% | ||
| OM | 10.59% | ||
| PM (TTM) | 6.13% | ||
| GM | 45.75% | ||
| FCFM | 12.3% |
ROA(3y)4.32%
ROA(5y)4.85%
ROE(3y)7.06%
ROE(5y)8.07%
ROIC(3y)7.1%
ROIC(5y)7.62%
ROICexc(3y)8.17%
ROICexc(5y)8.58%
ROICexgc(3y)54.6%
ROICexgc(5y)49.41%
ROCE(3y)9.89%
ROCE(5y)10.79%
ROICexcg growth 3Y-1.82%
ROICexcg growth 5Y-7.61%
ROICexc growth 3Y0.35%
ROICexc growth 5Y-6.58%
OM growth 3Y-0.73%
OM growth 5Y-7.24%
PM growth 3Y-5.74%
PM growth 5Y-12.01%
GM growth 3Y-0.69%
GM growth 5Y-0.31%
F-Score9
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Debt/EBITDA | 0.58 | ||
| Cap/Depr | 66.23% | ||
| Cap/Sales | 2.83% | ||
| Interest Coverage | 22.55 | ||
| Cash Conversion | 101.85% | ||
| Profit Quality | 200.84% | ||
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z | 3.3 |
F-Score9
WACC6.84%
ROIC/WACC1.01
Cap/Depr(3y)66.72%
Cap/Depr(5y)70.97%
Cap/Sales(3y)2.9%
Cap/Sales(5y)3.16%
Profit Quality(3y)114.74%
Profit Quality(5y)127.03%
High Growth Momentum
Growth
EPS 1Y (TTM)-9.65%
EPS 3Y0.43%
EPS 5Y4.39%
EPS Q2Q%N/A
EPS Next Y-19.66%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
EPS Next 5Y0.1%
Revenue 1Y (TTM)1.08%
Revenue growth 3Y2.43%
Revenue growth 5Y4.13%
Sales Q2Q%2.58%
Revenue Next Year-4.4%
Revenue Next 2Y-0.2%
Revenue Next 3Y3.57%
Revenue Next 5Y1.45%
EBIT growth 1Y2.89%
EBIT growth 3Y3.02%
EBIT growth 5Y-5.78%
EBIT Next Year53.6%
EBIT Next 3Y17.78%
EBIT Next 5Y10.1%
FCF growth 1Y304.74%
FCF growth 3Y3.83%
FCF growth 5Y7.3%
OCF growth 1Y161.03%
OCF growth 3Y1.86%
OCF growth 5Y3.82%