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. While HEN has a great health rating, its profitability is only average at the moment. 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
HEN has a Return On Assets of 4.15%. This is comparable to the rest of the industry: HEN outperforms 42.86% of its industry peers.
HEN has a Return On Equity (6.62%) which is in line with its industry peers.
The Return On Invested Capital of HEN (6.89%) is comparable to the rest of the 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 17.71%.
| 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.
In the last couple of years the Profit Margin of HEN has declined.
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 has a Gross Margin (45.75%) which is in line with 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
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.
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
An Altman-Z score of 3.65 indicates that HEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of HEN (3.65) is comparable to the rest of the industry.
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.
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.
HEN has a Debt/Equity ratio of 0.09. This is a healthy value indicating a solid balance between debt and equity.
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 | 3.65 |
ROIC/WACC1.03
WACC6.7%
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.
Looking at the Quick ratio, with a value of 0.88, HEN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
| 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.
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%0.96%
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
HEN is valuated correctly with a Price/Earnings ratio of 14.43.
HEN's Price/Earnings ratio is rather cheap when compared to the industry. HEN is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of HEN to the average of the S&P500 Index (29.35), we can say HEN is valued rather cheaply.
The Price/Forward Earnings ratio is 16.88, which indicates a correct valuation of HEN.
HEN's Price/Forward Earnings ratio is rather cheap when compared to the industry. HEN is cheaper than 85.71% of the companies in the same industry.
HEN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 16.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HEN indicates a rather cheap valuation: HEN is cheaper than 85.71% of the companies listed 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 | 12.96 | ||
| EV/EBITDA | 10.42 |
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)3.29
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
HEN has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.77, HEN's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than HEN!
Compared to an average S&P500 Dividend Yield of 2.33, HEN has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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.
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 (3/10/2025, 11:30:29 AM)
78.35
+0.55 (+0.71%)
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 Cap34.31B
Analysts70.67
Price Target78.53 (0.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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)1.05%
PT rev (3m)1.98%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.43 | ||
| Fwd PE | 16.88 | ||
| P/S | 1.59 | ||
| P/FCF | 12.96 | ||
| P/OCF | 10.54 | ||
| P/B | 1.72 | ||
| P/tB | 11.71 | ||
| EV/EBITDA | 10.42 |
EPS(TTM)5.43
EY6.93%
EPS(NY)4.64
Fwd EY5.92%
FCF(TTM)6.04
FCFY7.71%
OCF(TTM)7.43
OCFY9.49%
SpS49.12
BVpS45.49
TBVpS6.69
PEG (NY)N/A
PEG (5Y)3.29
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 | 3.65 |
F-Score9
WACC6.7%
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%0.96%
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 5Y12.16%
FCF growth 1Y304.74%
FCF growth 3Y3.83%
FCF growth 5Y7.3%
OCF growth 1Y161.03%
OCF growth 3Y1.86%
OCF growth 5Y3.82%