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 8 industry peers in the Household Products industry. While HEN has a great health rating, there are worries on its profitability. 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
In the past year HEN was profitable.
In the past year HEN had a positive cash flow from operations.
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
HEN's Return On Assets of 4.15% is on the low side compared to the rest of the industry. HEN is outperformed by 62.50% of its industry peers.
HEN's Return On Equity of 6.62% is on the low side compared to the rest of the industry. HEN is outperformed by 62.50% of its industry peers.
HEN has a worse Return On Invested Capital (6.89%) than 62.50% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEN is significantly below the industry average of 17.90%.
| 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
Looking at the Profit Margin, with a value of 6.13%, HEN is doing worse than 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of HEN has declined.
HEN has a Operating Margin of 10.59%. This is in the lower half of the industry: HEN underperforms 62.50% of its industry peers.
HEN's Operating Margin has declined in the last couple of years.
HEN's Gross Margin of 45.75% is in line compared to the rest of the industry. HEN outperforms 50.00% of its industry peers.
In the last couple of years the Gross Margin of HEN has remained more or less at the same level.
| 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.
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
HEN has an Altman-Z score of 3.38. 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 3.38, HEN is doing worse than 62.50% 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.
With an excellent Debt to FCF ratio value of 0.86, HEN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Debt/Equity ratio of 0.09 indicates that HEN is not too dependend on debt financing.
The Debt to Equity ratio of HEN (0.09) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.05
WACC6.57%
2.3 Liquidity
A Current Ratio of 1.20 indicates that HEN should not have too much problems paying its short term obligations.
HEN has a Current ratio of 1.20. This is amongst the best in the industry. HEN outperforms 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 has a better Quick ratio (0.88) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The earnings per share for HEN have decreased by -9.65% in the last year.
The Earnings Per Share has been growing slightly by 4.39% on average over the past years.
Looking at the last year, HEN shows a small growth in Revenue. The Revenue has grown by 1.08% in the last 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.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.27, which indicates a correct valuation of HEN.
100.00% of the companies in the same industry are more expensive than HEN, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of HEN to the average of the S&P500 Index (28.89), we can say HEN is valued rather cheaply.
With a Price/Forward Earnings ratio of 14.36, HEN is valued correctly.
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 21.98, HEN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 14.36 |
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 cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.03 | ||
| EV/EBITDA | 8.78 |
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)2.8
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
HEN has a Yearly Dividend Yield of 2.71%.
HEN's Dividend Yield is comparable with the industry average which is at 2.89.
Compared to an average S&P500 Dividend Yield of 2.39, HEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
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 (3/27/2025, 12:10:43 PM)
66.65
+0.8 (+1.21%)
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 Cap29.19B
Analysts70.67
Price Target78.53 (17.82%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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)1.12%
PT rev (3m)1.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.27 | ||
| Fwd PE | 14.36 | ||
| P/S | 1.36 | ||
| P/FCF | 11.03 | ||
| P/OCF | 8.97 | ||
| P/B | 1.47 | ||
| P/tB | 9.96 | ||
| EV/EBITDA | 8.78 |
EPS(TTM)5.43
EY8.15%
EPS(NY)4.64
Fwd EY6.96%
FCF(TTM)6.04
FCFY9.07%
OCF(TTM)7.43
OCFY11.15%
SpS49.12
BVpS45.49
TBVpS6.69
PEG (NY)N/A
PEG (5Y)2.8
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 | 3.38 |
F-Score9
WACC6.57%
ROIC/WACC1.05
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 Year53.36%
EBIT Next 3Y18.44%
EBIT Next 5Y11.33%
FCF growth 1Y304.74%
FCF growth 3Y3.83%
FCF growth 5Y7.3%
OCF growth 1Y161.03%
OCF growth 3Y1.86%
OCF growth 5Y3.82%