Henkel AG & Co. KGaA vz. (Pref Shares)
🇩🇪 HEN3.XETRA · Frankfurt · DE0006048432
Consumer
EUR 64.78 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
13.2
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 64.78 ÷ 4.91 = 13.2
TTM period through: 2025-12-31
Forward P/E (estimated): 12.1
Based on analyst estimates
Reference: Provider P/E (Trailing): 13.2
Yield (Fwd)
3.20%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.13%
Net Debt/EBITDA (TTM)
0.3x
Latest quarter: 0.6x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 0.6x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
42.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 41.8%
Cash Flow Payout (TTM): 33.8%
FCF Coverage (TTM): 2.15x
ROE
9.7%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
7.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
📊 What Changed From Last Analysis?
Moved from WATCH to OPTIMAL: The recent price compression has pushed the dividend yield from 2.80% to 3.13%, crossing our strict 3% minimum threshold, while lowering the P/E to an attractive 13.19.
Summary
Henkel is a high-quality global consumer and industrial leader boasting a fortress balance sheet and exceptional free cash flow generation. Trading at €64.78, the stock sits below our fair value estimate of €73-83 (blended P/E and dividend-based valuation), offering approximately 12-28% upside potential. Worth considering for new positions at current levels, as the very secure 3.1% yield provides reliable income while investors wait for temporary integration headwinds and input cost pressures to subside.
Sector Context
Henkel is a leading global producer of chemical and consumer goods, operating through two main divisions: Adhesive Technologies (industrial and consumer adhesives) and Consumer Brands (laundry, home care, and beauty products). Within the dividend strategy, consumer staples and specialty chemicals offer robust brand pricing power and highly resilient demand, though the adhesives segment can exhibit mild cyclicality tied to broader global industrial production.
Temporary Opportunity Identified
Market concerns over the $1.4B Olaplex integration, coupled with near-term margin pressure from high geopolitical oil prices (>$100/bbl), have temporarily compressed the valuation.
📊 Strategy Analysis
- • The recent price compression has pushed the dividend yield to 3.13%, crossing the strategy's strict 3% minimum threshold, supported by a perfect 10-year track record of zero cuts.
- • Valuation is highly attractive, trading at a P/E of 13.19 (forward P/E of 12.11), comfortably within the strategy's 8-15x sweet spot and indicating undervaluation.
- • Outstanding free cash flow generation with a cash flow payout ratio of only 34% (2.15x FCF coverage), ensuring the dividend is securely funded despite the accounting-driven TTM earnings payout ratio.
- • Displays a fortress balance sheet with Net Debt/EBITDA of just 0.27x and Debt/Equity of 0.18, providing immense safety and flexibility for the dividend.
⚠ What to Watch
- • The recent $1.4 billion acquisition of Olaplex introduces short-to-medium term integration and execution risks in the premium hair care segment.
- • Macroeconomic headwinds, specifically surging oil prices above $100/barrel, may temporarily compress margins in its chemical-heavy adhesives business.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.