DB: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 27% below its fair value

Earnings are forecast to grow 1.69% per year

Pays a high and reliable dividend of 2.06%

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

-2.5%

HEN3

-1.0%

DE Household Products

-4.7%

DE Market


1 Year Return

0.7%

HEN3

7.4%

DE Household Products

8.3%

DE Market

Return vs Industry: HEN3 underperformed the German Household Products industry which returned 7.4% over the past year.

Return vs Market: HEN3 underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

HEN3IndustryMarket
7 Day-2.5%-1.0%-4.7%
30 Day-6.3%-0.8%-4.0%
90 Day-6.6%0.9%-1.4%
1 Year2.8%0.7%10.1%7.4%11.7%8.3%
3 Year-19.8%-23.8%-12.5%-18.1%11.4%1.6%
5 Year-8.7%-15.4%7.8%-2.5%15.1%-0.7%

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

No news available

Valuation

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

27.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HEN3 (€90.14) is trading below our estimate of fair value (€123.46)

Significantly Below Fair Value: HEN3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HEN3 is good value based on its PE Ratio (17.3x) compared to the Household Products industry average (21x).

PE vs Market: HEN3 is good value based on its PE Ratio (17.3x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: HEN3 is poor value based on its PEG Ratio (10.2x)


Price to Book Ratio

PB vs Industry: HEN3 is overvalued based on its PB Ratio (2.3x) compared to the XE Household Products industry average (2x).


Next Steps

Future Growth

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

2.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HEN3's forecast earnings growth (1.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: HEN3's earnings (1.7% 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 (2.5% per year) is forecast to grow slower than the German market (5.1% per year).

High Growth Revenue: HEN3's revenue (2.5% 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 (11.1%).


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 (-11.6%).


Return on Equity

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


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?

2.08%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HEN3's dividend (2.06%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: HEN3's dividend (2.06%) is low compared to the top 25% of dividend payers in the German market (3.73%).


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 (39.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Carsten Knobel (50yo)

0.08yrs

Tenure

€3,752,491

Compensation

Dr. Carsten Knobel has been Chairman of The Management Board and Chief Executive Officer at Henkel AG & Co. KGaA since January 01, 2020. Dr. Knobel serves as Member of Management Board Henkel AG & Co. KGaA ...


CEO Compensation Analysis

Compensation vs Market: Carsten's total compensation ($USD4.08M) is about average for companies of similar size in the German market ($USD4.41M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Carsten Knobel
Chairman of the Management Board & CEO0.08yrs€3.75mno data
Jan-Dirk Auris
Executive VP of Adhesive Technologies & Member of Management Board - Henkel Management AG9.1yrs€3.74mno data
Bruno Piacenza
Executive VP of Laundry & Home Care and Member of Management Board - Henkel Management AG9.1yrs€3.73mno data
Jens-Martin Schwärzler
Executive VP of Beauty Care & Member of Management Board - Henkel Management AG2.3yrs€3.27mno data
Marco Swoboda
Executive Vice President of Finance & CFO0.08yrsno datano data
Sylvie Nicol
Executive VP of HR & Infrastructure Services and Member of Management Board - Henkel Mgmt AG0yrsno datano data
Lars Korinth
Head of Investor Relations0yrsno datano data
Thomas Kühn
General Counsel & Chief Compliance Officer0yrsno datano data
Carsten Tilger
Head of Corporate Communications & Public Affairs9.9yrsno datano data
Thomas Müller-Kirschbaum
Corporate Senior Vice President of Research & Development - Laundry & Home Care0yrsno datano data

5.7yrs

Average Tenure

50.5yo

Average Age

Experienced Management: HEN3's management team is seasoned and experienced (5.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Albrecht Woeste
Honorary Chairman of Henkel Group0yrsno datano data
Simone Bagel-Trah
Chairwoman of Supervisory Board10.4yrs€582.00kno data
Michael Vassiliadis
Member of Supervisory Board1.8yrs€82.52kno data
Michael Kaschke
Member of Supervisory Board11.8yrs€110.00kno data
Theo Siegert
Member of Supervisory Board10.8yrs€148.00kno data
Andrea Pichottka
Employee Representative Member of Supervisory Board15.3yrs€74.00kno data
Birgit Helten-Kindlein
Employee Representative Vice Chairman of Supervisory Board1.8yrs€138.51kno data
Jutta Bernicke
Employee Representative Member of Supervisory Board11.8yrs€75.00kno data
Kaspar von Braun
Member of Supervisory Board9.8yrs€75.00kno data
Edgar Topsch
Employee Representative Member of Supervisory Board9.5yrs€103.51kno data

10.4yrs

Average Tenure

58yo

Average Age

Experienced Board: HEN3's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

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: DB
  • Founded: 1876
  • Industry: Household Products
  • Sector: Household
  • Market Cap: €36.685b
  • 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
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
HEN3XTRA (XETRA Trading Platform)YesNon-Voting Preferred SharesDEEURApr 1991
HEN3DBATS-CHIXE (BATS 'Chi-X Europe')YesNon-Voting Preferred SharesGBEURApr 1991
HEN3SWX (SIX Swiss Exchange)YesNon-Voting Preferred SharesCHCHFApr 1991
HEN3BIT (Borsa Italiana)YesNon-Voting Preferred SharesITEURApr 1991
HEN3 NBMV (Bolsa Mexicana de Valores)YesNon-Voting Preferred SharesMXMXNApr 1991
HELK.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDJul 1996
HENDB (Deutsche Boerse AG)Ordinary SharesDEEURJul 1996
HENSWX (SIX Swiss Exchange)Ordinary SharesCHCHFJul 1996
HENXTRA (XETRA Trading Platform)Ordinary SharesDEEURJul 1996
0IZ8LSE (London Stock Exchange)Ordinary SharesGBEURJul 1996
HENDBATS-CHIXE (BATS 'Chi-X Europe')Ordinary SharesGBEURJul 1996
HENETLX (Eurotlx)Ordinary SharesITEURJul 1996
HENK.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 NPVUSUSDJan 1997
HENEBST (Boerse-Stuttgart)ADR EACH REP 1 NPVDEEURJan 1997
HENO.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 NON.V PRF NPV(CIT)USUSDMar 2001
HEN1BST (Boerse-Stuttgart)ADR EACH REP 1 NON.V PRF NPV(CIT)DEEURMar 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 adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods adhesives; transport and metal; general industry; electronics; and consumers, craftsmen, and building. This segment markets its products primarily under the Loctite, Technomelt, and Teroson brand names. Its Beauty Care segment offers hair cosmetics; and body, skin, and oral care products, as well as operates professional hair salons. This segment markets its products primarily under the Schwarzkopf, Dial, and Syoss brands. The company’s Laundry & Home Care segment offers heavy-duty and specialty detergents, fabric softeners, laundry performance enhancers, and other fabric care products; hand and automatic dishwashing products; cleaners for bathroom and WC applications; household, glass, and specialty cleaners; and air fresheners and insect control products for household applications. This segment markets its products primarily under the Persil, Bref, Purex, and all brand names. Henkel AG & Co. KGaA was founded in 1876 and is headquartered in Düsseldorf, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 21:03
End of Day Share Price2020/02/25 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.