Henkel HEN3.DE
What does Henkel do?
Henkel is a consumer goods and industrial group headquartered in Düsseldorf with two major business units. Adhesive Technologies supplies adhesives, sealants and functional coatings to industrial customers, for example in packaging, automotive, electronics, construction and crafts. This business depends heavily on global industrial production and benefits from technical know-how and long-standing customer relationships.
In the Consumer Brands business, Henkel sells laundry and cleaning products, fabric softeners, as well as hair care, hair coloring, styling and body care products. Well-known brands such as Persil, Schwarzkopf and Pril are distributed through retail, hair salons and digital channels. In terms of competition, Henkel is one of the world's leading providers in the adhesives business, while in consumer goods it competes with large international manufacturers and private labels. Its presence in many regions spreads economic and currency risks broadly.
Score profile
Rank vs. Household & Personal Products (18 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Henkel ranks in the middle in the group Household & Personal Products (4.9/10). On growth, the company ranks below average in the group Household & Personal Products (2.2/10). On valuation (higher = cheaper), the stock ranks in the middle in the group Household & Personal Products (5.4/10). On financial strength, Henkel ranks in the middle in the group Household & Personal Products (5.7/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 14.8x | 16.5x | better than 75 % |
| Trailing P/E | 18.6x | 27.5x | better than 96 % |
| PEG ratio | 3.5x | 2.2x | better than 15 % |
| EV/EBITDA | 11.2x | 13.4x | better than 64 % |
| Price/sales | 1.7x | 2.5x | better than 64 % |
| Price/book | 1.7x | 4.1x | better than 66 % |
| Revenue growth | -0.5% | 1.4% | better than 31 % |
| Earnings growth | -8.1% | 3.6% | better than 14 % |
| Gross margin | 51.3% | 54.9% | better than 47 % |
| Operating margin | 15.0% | 14.3% | better than 53 % |
| Net margin | 9.4% | 9.4% | better than 47 % |
| Return on equity | 9.4% | 9.4% | better than 50 % |
| Debt/equity | 32.2% | 75.3% | better than 79 % |
| Current ratio | 1.2x | 1.1x | better than 53 % |
| Free cash flow yield | 4.0% | 4.1% | better than 38 % |
| Dividend yield | 2.4% | 2.5% | – |
| Payout ratio | 44.0% | 78.4% | – |
| Beta | 0.54 | 0.57 | – |
Valuation: what is Henkel worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Henkel a model range of 53.16 EUR to 105.29 EUR per share.
17 analysts, average rating “Hold”, average price target 79.27 EUR (−9.3%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- Industrial customers' demand for adhesives is closely tied to production in automotive, electronics and packaging.
- Strong brands in the consumer goods business allow pricing power and stable demand even in weaker economic phases.
- Innovations and specialty applications with a high service content strengthen customer loyalty and profitability in the adhesives business.
Risks
- Fluctuating prices for raw materials such as petroleum derivatives weigh on margins if costs cannot be passed on promptly.
- Private labels and large competitors exert price pressure in the consumer goods business and make market share gains more difficult.
- Exchange rate fluctuations and economic weakness in key industrial sectors affect revenue and earnings.
What to look for with Henkel
The adjusted operating margin by business unit shows whether Henkel can pass on higher raw material costs and manage the brand and industrial businesses profitably.