HENKEL AG & CO KGAA (HEN.DE) Stock Fundamental Analysis
FRA:HEN - Deutsche Boerse Ag - DE0006048408 - Common Stock - Currency: EUR
HEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 7 industry peers in the Household Products industry. HEN has an excellent financial health rating, but there are some minor concerns on its profitability. HEN is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year HEN was profitable.
HEN had a positive operating cash flow in the past year.
Each year in the past 5 years HEN has been profitable.
Each year in the past 5 years HEN had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 4.15%, HEN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 6.62%, HEN is in line with its industry, outperforming 42.86% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.89%, HEN is in line with its industry, outperforming 42.86% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for HEN is significantly below the industry average of 18.15%.
| 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
The Profit Margin of HEN (6.13%) is comparable to the rest of the industry.
HEN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 10.59%, HEN perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
In the last couple of years the Operating Margin of HEN has declined.
HEN's Gross Margin of 45.75% is in line compared to the rest of the industry. HEN outperforms 57.14% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), HEN is creating some value.
HEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, HEN has less shares outstanding
Compared to 1 year ago, HEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.30 indicates that HEN is not in any danger for bankruptcy at the moment.
HEN has a Altman-Z score (3.30) which is in line with its industry peers.
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.
HEN's Debt to FCF ratio of 0.86 is amongst the best of the industry. HEN outperforms 100.00% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that HEN is not too dependend on debt financing.
HEN has a Debt to Equity ratio of 0.09. This is amongst the best in the industry. HEN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.3 |
ROIC/WACC1.03
WACC6.67%
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.
The Current ratio of HEN (1.20) is better than 100.00% of its industry peers.
HEN has a Quick Ratio of 1.20. This is a bad value and indicates that HEN is not financially healthy enough and could expect problems in meeting its short term obligations.
HEN has a Quick ratio of 0.88. This is amongst the best in 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%.
HEN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.39% yearly.
HEN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.08%.
Measured over the past years, HEN shows a small growth in Revenue. The Revenue has been growing by 4.13% on average per year.
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%-1.41%
3.2 Future
The Earnings Per Share is expected to grow by 0.10% on average over the next years.
The Revenue is expected to grow by 1.45% on average over the next years.
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 11.44, 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 27.21.
HEN is valuated correctly with a Price/Forward Earnings ratio of 13.38.
100.00% of the companies in the same industry are more expensive than HEN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.70, HEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 13.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HEN is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, HEN is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.27 | ||
| EV/EBITDA | 8.27 |
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)2.6
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
HEN has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
HEN's Dividend Yield is comparable with the industry average which is at 3.26.
Compared to an average S&P500 Dividend Yield of 2.42, HEN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of HEN has a limited annual growth rate of 0.61%.
Dividend Growth(5Y)0.61%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
HEN pays out 58.50% of its income as dividend. This is a bit on the high side, but may be sustainable.
HEN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP58.5%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
FRA:HEN (7/1/2025, 7:00:00 PM)
62.1
+0.6 (+0.98%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryHousehold Products
Earnings (Last)
Earnings (Next)
Inst Owners31%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap27.20B
Analysts70.34
Price Target75.9 (22.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
Yearly Dividend1.83
Dividend Growth(5Y)0.61%
DP58.5%
Div Incr Years1
Div Non Decr Years4
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)-1.88%
PT rev (3m)-2.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 11.44 | ||
| Fwd PE | 13.38 | ||
| P/S | 1.26 | ||
| P/FCF | 10.27 | ||
| P/OCF | 8.36 | ||
| P/B | 1.37 | ||
| P/tB | 9.28 | ||
| EV/EBITDA | 8.27 |
EPS(TTM)5.43
EY8.74%
EPS(NY)4.64
Fwd EY7.47%
FCF(TTM)6.04
FCFY9.73%
OCF(TTM)7.43
OCFY11.97%
SpS49.12
BVpS45.49
TBVpS6.69
PEG (NY)N/A
PEG (5Y)2.6
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
WACC6.67%
ROIC/WACC1.03
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%-1.41%
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 3Y16.78%
EBIT Next 5Y8.92%
FCF growth 1Y304.74%
FCF growth 3Y3.83%
FCF growth 5Y7.3%
OCF growth 1Y161.03%
OCF growth 3Y1.86%
OCF growth 5Y3.82%