HENKEL AG & CO KGAA (HEN.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:HEN - DE0006048408 - Common Stock
67.75 EUR
+0.35 (+0.52%)
HEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 12 industry peers in the Household Products industry. While HEN has a great health rating, its profitability is only average at the moment. 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.
- 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 6.37%, HEN perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
- HEN's Return On Equity of 10.42% is in line compared to the rest of the industry. HEN outperforms 41.67% of its industry peers.
- The Return On Invested Capital of HEN (9.12%) is worse than 66.67% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for HEN is significantly below the industry average of 17.69%.
- The last Return On Invested Capital (9.12%) for HEN 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
- HEN has a Profit Margin of 9.86%. This is comparable to the rest of the industry: HEN outperforms 41.67% of its industry peers.
- In the last couple of years the Profit Margin of HEN has declined.
- HEN's Operating Margin of 14.36% is on the low side compared to the rest of the industry. HEN is outperformed by 66.67% of its industry peers.
- In the last couple of years the Operating Margin of HEN has declined.
- Looking at the Gross Margin, with a value of 50.91%, HEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- HEN'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
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HEN is still creating some value.
- Compared to 1 year ago, HEN has about the same amount of shares outstanding.
- Compared to 5 years ago, HEN has less shares outstanding
- Compared to 1 year ago, HEN has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.38 indicates that HEN is not in any danger for bankruptcy at the moment.
- HEN has a Altman-Z score (3.38) which is comparable to the rest of the industry.
- HEN has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
- With an excellent Debt to FCF ratio value of 1.79, 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 0.10. This is a healthy value indicating a solid balance between debt and equity.
- HEN has a Debt to Equity ratio of 0.10. This is amongst the best in the industry. HEN outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 3.38 |
ROIC/WACC1.33
WACC6.87%
2.3 Liquidity
- HEN has a Current Ratio of 1.21. This is a normal value and indicates that HEN is financially healthy and should not expect problems in meeting its short term obligations.
- HEN's Current ratio of 1.21 is amongst the best of the industry. HEN outperforms 100.00% of its industry peers.
- HEN has a Quick Ratio of 1.21. This is a bad value and indicates that HEN is not financially healthy enough and could expect problems in meeting its short term obligations.
- With an excellent Quick ratio value of 0.91, HEN belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 0.91 |
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.
- HEN shows a small growth in Revenue. In the last year, the Revenue has grown by 1.08%.
- 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.
- 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
- 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.
- 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
- HEN is valuated correctly with a Price/Earnings ratio of 12.48.
- 100.00% of the companies in the same industry are more expensive than HEN, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, HEN is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 14.60, the valuation of HEN can be described as correct.
- Based on the Price/Forward Earnings ratio, HEN is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
- HEN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 14.6 |
4.2 Price Multiples
- HEN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HEN is cheaper than 100.00% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of HEN indicates a rather cheap valuation: HEN is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.31 | ||
| EV/EBITDA | 7.74 |
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)2.84
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
- HEN has a Yearly Dividend Yield of 2.83%.
- HEN's Dividend Yield is comparable with the industry average which is at 3.04.
- HEN's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
- The dividend of HEN has a limited annual growth rate of 0.01%.
Dividend Growth(5Y)0.01%
Div Incr Years1
Div Non Decr Years4
5.3 Sustainability
- HEN pays out 40.71% of its income as dividend. This is a bit on the high side, but may be sustainable.
- The dividend of HEN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.71%
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
HENKEL AG & CO KGAA / HEN.DE FAQ
Can you provide the ChartMill fundamental rating for HENKEL AG & CO KGAA?
ChartMill assigns a fundamental rating of 5 / 10 to HEN.DE.
What is the valuation status for HEN stock?
ChartMill assigns a valuation rating of 6 / 10 to HENKEL AG & CO KGAA (HEN.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for HENKEL AG & CO KGAA?
HENKEL AG & CO KGAA (HEN.DE) has a profitability rating of 4 / 10.
What is the expected EPS growth for HENKEL AG & CO KGAA (HEN.DE) stock?
The Earnings per Share (EPS) of HENKEL AG & CO KGAA (HEN.DE) is expected to decline by -19.66% in the next year.
Can you provide the dividend sustainability for HEN stock?
The dividend rating of HENKEL AG & CO KGAA (HEN.DE) is 6 / 10 and the dividend payout ratio is 40.71%.