HENKEL AG & CO KGAA VOR-PREF (HEN3.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HEN3 - DE0006048432
71.72 EUR
-0.6 (-0.83%)
We assign a fundamental rating of 5 out of 10 to HEN3. HEN3 was compared to 12 industry peers in the Household Products industry. While HEN3 has a great health rating, there are worries on its profitability. HEN3 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- In the past year HEN3 was profitable.
- HEN3 had a positive operating cash flow in the past year.
- Each year in the past 5 years HEN3 has been profitable.
- In the past 5 years HEN3 always reported a positive cash flow from operatings.
1.2 Ratios
- HEN3's Return On Assets of 6.37% is on the low side compared to the rest of the industry. HEN3 is outperformed by 66.67% of its industry peers.
- Looking at the Return On Equity, with a value of 10.42%, HEN3 is doing worse than 66.67% of the companies in the same industry.
- With a Return On Invested Capital value of 9.12%, HEN3 is not doing good in the industry: 75.00% of the companies in the same industry are doing better.
- Measured over the past 3 years, the Average Return On Invested Capital for HEN3 is significantly below the industry average of 17.69%.
- The last Return On Invested Capital (9.12%) for HEN3 is above the 3 year average (7.40%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.37% | ||
| ROE | 10.42% | ||
| ROIC | 9.12% |
ROA(3y)4.55%
ROA(5y)4.66%
ROE(3y)7.37%
ROE(5y)7.67%
ROIC(3y)7.4%
ROIC(5y)7.4%
1.3 Margins
- The Profit Margin of HEN3 (9.86%) is worse than 66.67% of its industry peers.
- HEN3's Profit Margin has declined in the last couple of years.
- HEN3's Operating Margin of 14.36% is on the low side compared to the rest of the industry. HEN3 is outperformed by 75.00% of its industry peers.
- HEN3's Operating Margin has declined in the last couple of years.
- The Gross Margin of HEN3 (50.91%) is comparable to the rest of the industry.
- HEN3's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.36% | ||
| PM (TTM) | 9.86% | ||
| GM | 50.91% |
OM growth 3Y5.49%
OM growth 5Y-2.31%
PM growth 3Y4.52%
PM growth 5Y-2.15%
GM growth 3Y3.84%
GM growth 5Y1.81%
2. Health
2.1 Basic Checks
- HEN3 has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- HEN3 has about the same amout of shares outstanding than it did 1 year ago.
- HEN3 has less shares outstanding than it did 5 years ago.
- HEN3 has a worse debt/assets ratio than last year.
2.2 Solvency
- HEN3 has an Altman-Z score of 3.48. This indicates that HEN3 is financially healthy and has little risk of bankruptcy at the moment.
- HEN3 has a Altman-Z score (3.48) which is comparable to the rest of the industry.
- The Debt to FCF ratio of HEN3 is 1.79, which is an excellent value as it means it would take HEN3, only 1.79 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HEN3 (1.79) is better than 91.67% of its industry peers.
- HEN3 has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
- HEN3 has a Debt to Equity ratio of 0.10. This is amongst the best in the industry. HEN3 outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 3.48 |
ROIC/WACC1.32
WACC6.91%
2.3 Liquidity
- A Current Ratio of 1.21 indicates that HEN3 should not have too much problems paying its short term obligations.
- HEN3 has a Current ratio of 1.21. This is amongst the best in the industry. HEN3 outperforms 91.67% of its industry peers.
- HEN3 has a Quick Ratio of 1.21. This is a bad value and indicates that HEN3 is not financially healthy enough and could expect problems in meeting its short term obligations.
- HEN3's Quick ratio of 0.91 is amongst the best of the industry. HEN3 outperforms 91.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
- The earnings per share for HEN3 have decreased by -9.65% in the last year.
- Measured over the past 5 years, HEN3 shows a small growth in Earnings Per Share. The EPS has been growing by 4.39% on average per year.
- 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%-6.28%
3.2 Future
- The Earnings Per Share is expected to grow by 0.10% on average over the next years.
- Based on estimates for the next years, HEN3 will show a small growth in Revenue. The Revenue will grow by 1.45% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- 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
- Based on the Price/Earnings ratio of 13.21, the valuation of HEN3 can be described as correct.
- HEN3's Price/Earnings ratio is rather cheap when compared to the industry. HEN3 is cheaper than 91.67% of the companies in the same industry.
- HEN3's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
- Based on the Price/Forward Earnings ratio of 15.45, the valuation of HEN3 can be described as correct.
- Based on the Price/Forward Earnings ratio, HEN3 is valued a bit cheaper than 75.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, HEN3 is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.21 | ||
| Fwd PE | 15.45 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEN3 indicates a rather cheap valuation: HEN3 is cheaper than 91.67% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, HEN3 is valued cheaper than 91.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.15 | ||
| EV/EBITDA | 8.31 |
4.3 Compensation for Growth
- A cheap valuation may be justified as HEN3's earnings are expected to decrease with -9.55% in the coming years.
PEG (NY)N/A
PEG (5Y)3.01
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
- HEN3 has a Yearly Dividend Yield of 2.83%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 3.04, HEN3 has a dividend in line with its industry peers.
- HEN3's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
- The dividend of HEN3 has a limited annual growth rate of 0.01%.
Dividend Growth(5Y)0.01%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 40.71% of the earnings are spent on dividend by HEN3. This is a bit on the high side, but may be sustainable.
- HEN3's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.71%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
HENKEL AG & CO KGAA VOR-PREF / HEN3.DE FAQ
What is the fundamental rating for HEN3 stock?
ChartMill assigns a fundamental rating of 5 / 10 to HEN3.DE.
Can you provide the valuation status for HENKEL AG & CO KGAA VOR-PREF?
ChartMill assigns a valuation rating of 6 / 10 to HENKEL AG & CO KGAA VOR-PREF (HEN3.DE). This can be considered as Fairly Valued.
What is the profitability of HEN3 stock?
HENKEL AG & CO KGAA VOR-PREF (HEN3.DE) has a profitability rating of 3 / 10.
Can you provide the financial health for HEN3 stock?
The financial health rating of HENKEL AG & CO KGAA VOR-PREF (HEN3.DE) is 7 / 10.
Is the dividend of HENKEL AG & CO KGAA VOR-PREF sustainable?
The dividend rating of HENKEL AG & CO KGAA VOR-PREF (HEN3.DE) is 6 / 10 and the dividend payout ratio is 40.71%.