HENKEL AG & CO KGAA (HEN.DE) Stock Fundamental Analysis
FRA:HEN - Deutsche Boerse Ag - DE0006048408 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to HEN. HEN was compared to 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 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 HEN was profitable.
In the past year HEN had a positive cash flow from operations.
HEN had positive earnings in each of the past 5 years.
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.
HEN has a Return On Invested Capital of 6.89%. This is comparable to the rest of the industry: HEN outperforms 42.86% of its industry peers.
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
With a Profit Margin value of 6.13%, HEN perfoms like the industry average, outperforming 42.86% 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 (10.59%) which is in line with its industry peers.
HEN's Operating Margin has declined in the last couple of years.
The Gross Margin of HEN (45.75%) is comparable to the rest of the industry.
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
HEN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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
The debt/assets ratio for HEN has been reduced compared to a year ago.
2.2 Solvency
HEN has an Altman-Z score of 3.28. This indicates that HEN is financially healthy and has little risk of bankruptcy at the moment.
HEN's Altman-Z score of 3.28 is in line compared to the rest of the industry. HEN outperforms 42.86% of its industry peers.
HEN has a debt to FCF ratio of 0.86. This is a very positive value and a sign of high solvency as it would only need 0.86 years to pay back of all of its debts.
HEN has a better Debt to FCF ratio (0.86) than 100.00% of its industry peers.
HEN has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
HEN has a better Debt to Equity ratio (0.09) than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.03
WACC6.67%
2.3 Liquidity
A Current Ratio of 1.20 indicates that HEN should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.20, HEN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 0.88 indicates that HEN may have some problems paying 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
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.
The Revenue has been growing slightly by 1.08% in the past year.
HEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.13% yearly.
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.
Based on estimates for the next years, HEN 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
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 11.33, which indicates a very decent valuation of HEN.
Based on the Price/Earnings ratio, HEN is valued cheaper than 100.00% of the companies in the same industry.
HEN is valuated cheaply when we compare the Price/Earnings ratio to 27.15, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.25, 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/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HEN to the average of the S&P500 Index (21.60), we can say HEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.33 | ||
| Fwd PE | 13.25 |
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 | 10.18 | ||
| EV/EBITDA | 8.13 |
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
With a Yearly Dividend Yield of 3.07%, HEN has a reasonable but not impressive dividend return.
HEN's Dividend Yield is comparable with the industry average which is at 3.26.
HEN's Dividend Yield is a higher than the S&P500 average which is at 2.42.
| 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
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 (6/30/2025, 7:00:00 PM)
61.5
+0.4 (+0.65%)
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 Cap26.93B
Analysts70.34
Price Target75.9 (23.41%)
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 | 11.33 | ||
| Fwd PE | 13.25 | ||
| P/S | 1.25 | ||
| P/FCF | 10.18 | ||
| P/OCF | 8.27 | ||
| P/B | 1.35 | ||
| P/tB | 9.19 | ||
| EV/EBITDA | 8.13 |
EPS(TTM)5.43
EY8.83%
EPS(NY)4.64
Fwd EY7.55%
FCF(TTM)6.04
FCFY9.83%
OCF(TTM)7.43
OCFY12.08%
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 | 3.28 |
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%