HENKEL AG & CO KGAA VOR-PREF (HEN3.DE) Stock Fundamental Analysis
FRA:HEN3 - Deutsche Boerse Ag - DE0006048432 - Currency: EUR
HEN3 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 7 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
HEN3 had positive earnings in the past year.
HEN3 had a positive operating cash flow in the past year.
In the past 5 years HEN3 has always been profitable.
HEN3 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HEN3 has a worse Return On Assets (4.15%) than 71.43% of its industry peers.
The Return On Equity of HEN3 (6.62%) is worse than 71.43% of its industry peers.
HEN3 has a worse Return On Invested Capital (6.89%) than 71.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for HEN3 is significantly below the industry average of 17.85%.
| 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%, HEN3 is not doing good in the industry: 71.43% of the companies in the same industry are doing better.
HEN3's Profit Margin has declined in the last couple of years.
The Operating Margin of HEN3 (10.59%) is worse than 71.43% of its industry peers.
In the last couple of years the Operating Margin of HEN3 has declined.
The Gross Margin of HEN3 (45.75%) is comparable to the rest of the industry.
HEN3's Gross Margin has been stable in the last couple of years.
| 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
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 less shares outstanding than it did 1 year ago.
The number of shares outstanding for HEN3 has been reduced compared to 5 years ago.
Compared to 1 year ago, HEN3 has an improved debt to assets ratio.
2.2 Solvency
HEN3 has an Altman-Z score of 3.44. This indicates that HEN3 is financially healthy and has little risk of bankruptcy at the moment.
HEN3 has a Altman-Z score (3.44) which is comparable to the rest of the industry.
The Debt to FCF ratio of HEN3 is 0.86, which is an excellent value as it means it would take HEN3, only 0.86 years of fcf income to pay off all of its debts.
HEN3 has a Debt to FCF ratio of 0.86. This is amongst the best in the industry. HEN3 outperforms 85.71% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that HEN3 is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.09, HEN3 belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 0.86 | ||
| Altman-Z | 3.44 |
ROIC/WACC1
WACC6.89%
2.3 Liquidity
A Current Ratio of 1.20 indicates that HEN3 should not have too much problems paying its short term obligations.
The Current ratio of HEN3 (1.20) is better than 85.71% of its industry peers.
A Quick Ratio of 0.88 indicates that HEN3 may have some problems paying its short term obligations.
The Quick ratio of HEN3 (0.88) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.2 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
HEN3 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.
Looking at the last year, HEN3 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
HEN3 is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 0.10% yearly.
HEN3 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.
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
With a Price/Earnings ratio of 12.58, HEN3 is valued correctly.
Based on the Price/Earnings ratio, HEN3 is valued cheaper than 85.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. HEN3 is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 14.71 indicates a correct valuation of HEN3.
71.43% of the companies in the same industry are more expensive than HEN3, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.38. HEN3 is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.58 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
HEN3's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HEN3 is cheaper than 71.43% of the companies in the same industry.
HEN3's Price/Free Cash Flow ratio is rather cheap when compared to the industry. HEN3 is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.3 | ||
| EV/EBITDA | 9.11 |
4.3 Compensation for Growth
HEN3's earnings are expected to decrease with -9.55% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.86
EPS Next 2Y-7.54%
EPS Next 3Y-9.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.98%, HEN3 has a reasonable but not impressive dividend return.
HEN3's Dividend Yield is comparable with the industry average which is at 3.15.
Compared to an average S&P500 Dividend Yield of 2.47, HEN3 pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of HEN3 has a limited annual growth rate of 0.61%.
Dividend Growth(5Y)0.61%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
58.50% 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 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:HEN3 (4/25/2025, 5:36:15 PM)
68.3
-0.16 (-0.23%)
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 Cap29.91B
Analysts70
Price Target85.19 (24.73%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
Yearly Dividend1.83
Dividend Growth(5Y)0.61%
DP58.5%
Div Incr Years0
Div Non Decr Years0
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)-3.94%
PT rev (3m)-1.74%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
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 | 12.58 | ||
| Fwd PE | 14.71 | ||
| P/S | 1.39 | ||
| P/FCF | 11.3 | ||
| P/OCF | 9.19 | ||
| P/B | 1.5 | ||
| P/tB | 10.21 | ||
| EV/EBITDA | 9.11 |
EPS(TTM)5.43
EY7.95%
EPS(NY)4.64
Fwd EY6.8%
FCF(TTM)6.04
FCFY8.85%
OCF(TTM)7.43
OCFY10.88%
SpS49.12
BVpS45.49
TBVpS6.69
PEG (NY)N/A
PEG (5Y)2.86
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 | 3.44 |
F-Score9
WACC6.89%
ROIC/WACC1
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 Year53.6%
EBIT Next 3Y17.78%
EBIT Next 5Y10.1%
FCF growth 1Y304.74%
FCF growth 3Y3.83%
FCF growth 5Y7.3%
OCF growth 1Y161.03%
OCF growth 3Y1.86%
OCF growth 5Y3.82%