Henkel AG & Co. KGaA
Henkel AG & Co. KGaA Fundamental Analysis
Henkel AG & Co. KGaA (HENOF) shows weak financial fundamentals with a PE ratio of 17.00, profit margin of 9.93%, and ROE of 10.04%. The company generates $21.1B in annual revenue with weak year-over-year growth of 0.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 48.7/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HENOF's fundamental strength across five key dimensions:
Efficiency Score
WeakHENOF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHENOF trades at attractive valuation levels.
Growth Score
ModerateHENOF shows steady but slowing expansion.
Financial Health Score
ExcellentHENOF maintains a strong and stable balance sheet.
Profitability Score
WeakHENOF struggles to sustain strong margins.
Key Financial Metrics
Is HENOF Expensive or Cheap?
P/E Ratio
HENOF trades at 17.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, HENOF's PEG of -16.26 indicates potential undervaluation.
Price to Book
The market values Henkel AG & Co. KGaA at 1.69 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.51 times EBITDA. This is generally considered low.
How Well Does HENOF Make Money?
Net Profit Margin
For every $100 in sales, Henkel AG & Co. KGaA keeps $9.93 as profit after all expenses.
Operating Margin
Core operations generate 14.40 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.04 in profit for every $100 of shareholder equity.
ROA
Henkel AG & Co. KGaA generates $6.10 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Henkel AG & Co. KGaA produces operating cash flow of $2.59B, showing steady but balanced cash generation.
Free Cash Flow
Henkel AG & Co. KGaA produces free cash flow of $1.87B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $4.47 in free cash annually.
FCF Yield
HENOF converts 5.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
17.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-16.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.69
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How HENOF Stacks Against Its Sector Peers
| Metric | HENOF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 17.00 | 22.56 | Better (Cheaper) |
| ROE | 10.04% | 1288.00% | Weak |
| Net Margin | 9.93% | -5952.00% (disorted) | Weak |
| Debt/Equity | 0.18 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.19 | 2.41 | Neutral |
| ROA | 6.10% | -197304.00% (disorted) | Weak |
HENOF outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Henkel AG & Co. KGaA's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
11.00%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
-0.44%
Industry Style: Defensive, Dividend, Low Volatility
DecliningFCF CAGR
1.77%
Industry Style: Defensive, Dividend, Low Volatility
Growing