XTRA:HEN3

Stock Analysis Report

Executive Summary

Henkel AG & Co. KGaA, together with its subsidiaries, engages in adhesive technologies, beauty care, and laundry and home care businesses worldwide.

Rewards

Trading at 14% below its fair value

Earnings are forecast to grow 5.39% per year

Pays a high and reliable dividend of 1.95%

Risk Analysis

No risks detected for HEN3 from our risk checks.


Snowflake Analysis

Excellent balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Henkel KGaA's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HEN3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.1%

HEN3

-1.3%

DE Household Products

-0.3%

DE Market


1 Year Return

-5.3%

HEN3

0.002%

DE Household Products

14.9%

DE Market

Return vs Industry: HEN3 underperformed the German Household Products industry which returned 0% over the past year.

Return vs Market: HEN3 underperformed the German Market which returned 14.9% over the past year.


Shareholder returns

HEN3IndustryMarket
7 Day-1.1%-1.3%-0.3%
30 Day-0.3%0.03%-0.1%
90 Day0.9%-1.4%7.1%
1 Year-3.3%-5.3%2.5%0.002%18.5%14.9%
3 Year-9.1%-13.6%-6.0%-11.9%20.0%9.5%
5 Year14.7%6.2%25.4%12.1%38.0%19.3%

Price Volatility Vs. Market

How volatile is Henkel KGaA's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Henkel KGaA undervalued compared to its fair value and its price relative to the market?

14.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEN3 (€94.8) is trading below our estimate of fair value (€110.27)

Significantly Below Fair Value: HEN3 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HEN3 is good value based on its PE Ratio (18.2x) compared to the Household Products industry average (18.6x).

PE vs Market: HEN3 is good value based on its PE Ratio (18.2x) compared to the German market (20.4x).


Price to Earnings Growth Ratio

PEG Ratio: HEN3 is poor value based on its PEG Ratio (3.4x)


Price to Book Ratio

PB vs Industry: HEN3 is overvalued based on its PB Ratio (2.4x) compared to the XE Household Products industry average (2.1x).


Next Steps

Future Growth

How is Henkel KGaA forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

5.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEN3's forecast earnings growth (5.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: HEN3's earnings (5.4% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: HEN3's earnings are forecast to grow, but not significantly.

Revenue vs Market: HEN3's revenue (2.7% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: HEN3's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HEN3's Return on Equity is forecast to be low in 3 years time (11.7%).


Next Steps

Past Performance

How has Henkel KGaA performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HEN3 has high quality earnings.

Growing Profit Margin: HEN3's current net profit margins (11%) are lower than last year (12.5%).


Past Earnings Growth Analysis

Earnings Trend: HEN3's earnings have grown by 7.7% per year over the past 5 years.

Accelerating Growth: HEN3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HEN3 had negative earnings growth (-11.6%) over the past year, making it difficult to compare to the Household Products industry average (-34.3%).


Return on Equity

High ROE: HEN3's Return on Equity (12.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Henkel KGaA's financial position?


Financial Position Analysis

Short Term Liabilities: HEN3's short term assets (€10.3B) exceed its short term liabilities (€9.6B).

Long Term Liabilities: HEN3's short term assets (€10.3B) exceed its long term liabilities (€4.7B).


Debt to Equity History and Analysis

Debt Level: HEN3's debt to equity ratio (26.7%) is considered satisfactory.

Reducing Debt: HEN3's debt to equity ratio has increased from 14.5% to 26.7% over the past 5 years.

Debt Coverage: HEN3's debt is well covered by operating cash flow (67.5%).

Interest Coverage: HEN3's interest payments on its debt are well covered by EBIT (44.5x coverage).


Balance Sheet

Inventory Level: HEN3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: HEN3's debt is covered by short term assets (assets are 2.1x debt).


Next Steps

Dividend

What is Henkel KGaA's current dividend yield, its reliability and sustainability?

1.95%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.6%industryaverage2.4%forecastin3Years2.1%

Current dividend yield vs market & industry

Notable Dividend: HEN3's dividend (1.95%) is higher than the bottom 25% of dividend payers in the German market (1.37%).

High Dividend: HEN3's dividend (1.95%) is low compared to the top 25% of dividend payers in the German market (3.57%).


Stability and Growth of Payments

Stable Dividend: HEN3's dividends per share have been stable in the past 10 years.

Growing Dividend: HEN3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.6%), HEN3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HEN3's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

What is the CEO of Henkel KGaA's salary, the management and board of directors tenure and is there insider trading?

8.2yrs

Average management tenure


CEO

Hans Van Bylen (58yo)

3.6yrs

Tenure

€6,266,111

Compensation

Mr. Hans Van Bylen has been Chairman of Management Board - Henkel Management Ag at Henkel AG & Co. KGaA since May 1, 2016. Mr. Van Bylen has been the Chief Executive Officer of Henkel Ltd. since May 2016 a ...


CEO Compensation Analysis

Compensation vs Market: Hans's total compensation ($USD6.95M) is above average for companies of similar size in the German market ($USD4.62M).

Compensation vs Earnings: Hans's compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: HEN3's management team is seasoned and experienced (8.2 years average tenure).


Board Age and Tenure

10.3yrs

Average Tenure

58yo

Average Age

Experienced Board: HEN3's board of directors are seasoned and experienced ( 10.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Hans Van Bylen (58yo)

    Chairman of Mgmt. Board & CEO of Henkel Management AG

    • Tenure: 3.6yrs
    • Compensation: €6.27m
  • Thomas Müller-Kirschbaum

    Corporate Senior Vice President of Research & Development - Laundry & Home Care

    • Tenure: 0yrs
  • Carsten Tilger

    Head of Corporate Communications & Public Affairs

    • Tenure: 9.8yrs
  • Jan-Dirk Auris (51yo)

    Executive VP of Adhesive Technologies & Member of Management Board - Henkel Management AG

    • Tenure: 8.9yrs
    • Compensation: €3.74m
  • Thomas Kühn

    General Counsel & Chief Compliance Officer

    • Tenure: 0yrs
  • Carsten Knobel (50yo)

    CFO, EVP - Fin

    • Tenure: 7.4yrs
    • Compensation: €3.75m
  • Bruno Piacenza (54yo)

    Executive VP of Laundry & Home Care and Member of Management Board - Henkel Management AG

    • Tenure: 8.9yrs
    • Compensation: €3.73m
  • Jens-Martin Schwärzler (56yo)

    Executive VP of Beauty Care & Member of Management Board - Henkel Management AG

    • Tenure: 2.1yrs
    • Compensation: €3.27m
  • Lars Korinth

    Head of Investor Relations

    • Tenure: 0yrs
  • Sylvie Nicol (46yo)

    Executive VP of HR & Infrastructure Services and Member of Management Board - Henkel Mgmt AG

    • Tenure: 0yrs

Board Members

  • Albrecht Woeste (83yo)

    Honorary Chairman of Henkel Group

    • Tenure: 0yrs
  • Simone Bagel-Trah (50yo)

    Chairwoman of Supervisory Board

    • Tenure: 10.3yrs
    • Compensation: €582.00k
  • Michael Vassiliadis (55yo)

    Member of Supervisory Board

    • Tenure: 1.7yrs
    • Compensation: €82.52k
  • Michael Kaschke (62yo)

    Member of Supervisory Board

    • Tenure: 11.7yrs
    • Compensation: €110.00k
  • Theo Siegert (72yo)

    Member of Supervisory Board

    • Tenure: 10.7yrs
    • Compensation: €148.00k
  • Andrea Pichottka (60yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 15.2yrs
    • Compensation: €74.00k
  • Birgit Helten-Kindlein (55yo)

    Employee Representative Vice Chairman of Supervisory Board

    • Tenure: 1.7yrs
    • Compensation: €138.51k
  • Jutta Bernicke (57yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 11.7yrs
    • Compensation: €75.00k
  • Kaspar von Braun (48yo)

    Member of Supervisory Board

    • Tenure: 9.7yrs
    • Compensation: €75.00k
  • Edgar Topsch (59yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 9.3yrs
    • Compensation: €103.51k

Company Information

Henkel AG & Co. KGaA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Henkel AG & Co. KGaA
  • Ticker: HEN3
  • Exchange: XTRA
  • Founded: 1876
  • Industry: Household Products
  • Sector: Household
  • Market Cap: €38.998b
  • Shares outstanding: 434.28m
  • Website: https://www.henkel.com

Number of Employees


Location

  • Henkel AG & Co. KGaA
  • Henkelstrasse 67
  • Düsseldorf
  • North Rhine-Westphalia
  • 40589
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HEN3XTRA (XETRA Trading Platform)YesNon-Voting Preferred SharesDEEURApr 1991
HENO.FOTCPK (Pink Sheets LLC)YesNon-Voting Preferred SharesUSUSDApr 1991
HEN3DB (Deutsche Boerse AG)YesNon-Voting Preferred SharesDEEURApr 1991
HENWBAG (Wiener Boerse AG)YesNon-Voting Preferred SharesATEURApr 1991
0IZCLSE (London Stock Exchange)YesNon-Voting Preferred SharesGBEURApr 1991
HEN3 NBMV (Bolsa Mexicana de Valores)YesNon-Voting Preferred SharesMXMXNApr 1991
HEN3BIT (Borsa Italiana)YesNon-Voting Preferred SharesITEURApr 1991
HEN3SWX (SIX Swiss Exchange)YesNon-Voting Preferred SharesCHCHFApr 1991
HEN3DBATS-CHIXE (BATS 'Chi-X Europe')YesNon-Voting Preferred SharesGBEURApr 1991
HENXTRA (XETRA Trading Platform)Ordinary SharesDEEURJul 1996
HENSWX (SIX Swiss Exchange)Ordinary SharesCHCHFJul 1996
0IZ8LSE (London Stock Exchange)Ordinary SharesGBEURJul 1996
HELK.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDJul 1996
HENETLX (Eurotlx)Ordinary SharesITEURJul 1996
HENDB (Deutsche Boerse AG)Ordinary SharesDEEURJul 1996
HENDBATS-CHIXE (BATS 'Chi-X Europe')Ordinary SharesGBEURJul 1996
HENEBST (Boerse-Stuttgart)ADR EACH REP 1 NPVDEEURJan 1997
HENK.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 NPVUSUSDJan 1997
HEN1BST (Boerse-Stuttgart)ADR EACH REP 1 NON.V PRF NPV(CIT)DEEURMar 2001
HENO.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 NON.V PRF NPV(CIT)USUSDMar 2001

Biography

Henkel AG & Co. KGaA, together with its subsidiaries, engages in adhesive technologies, beauty care, and laundry and home care businesses worldwide. The company’s Adhesive Technologies segment offers adhes ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 20:54
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.