Henkel AG & Co.

Financial Performance

5Y price score: (13)

10Y return: (19.2)%

DATE RANGE:

EUR Per
Share

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61.2

52-week range

84.2

77.2

Your model inputs

Required return / cost of capital

FCFF terminal growth rate

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

5.8 %

Dividend Yield TTM

2.7 %

Market cap

31,992

Price / Earnings TTM

15.7

Price / Book TTM

1.5

PEG TTM

5.8

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

10.3 %

1.1 %

(19.2) %

Free cash flow per share growth

(25.9) %

(19.2) %

10.2 %

Earnings per share growth

2.7 %

51.5 %

11.1 %

Founded: 1,876

Employees: 47,800

Business Summary:Henkel AG & Co. KGaA, together with its subsidiaries, engages in the 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; automotive and metals; electronics and industrials; and craftsmen, construction, and professional industries. This segment markets its products primarily under the Loctite, Technomelt, Bonderite, Teroson, and Aquence brands. Its Beauty Care segment provides hair cosmetics; and body, skin, and oral care products, as well as operates professional hair salons. This segment distributes its products through brick-and-mortar stores, hair salons, third-party online platforms, and direct-to-consumer channels 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, all, and other brands. Henkel AG & Co. KGaA was founded in 1876 and is headquartered in Düsseldorf, Germany.

Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q2 (Aug 6, 2026)

1) Strong Financial Performance
- Organic sales growth of 3.2% in H1 2026, with Q2 showing a clear acceleration.
- EBIT margin improved, reaching 15.7% overall, with Adhesive Technologies at 17.7%.
- Adjusted EPS increased by 7% year-over-year at constant currency, reaching EUR 2.86.
- Total sales amounted to EUR 10.3 billion, slightly below prior year due to foreign exchange impacts.

2) M&A Strategy and Acquisitions
- Closed acquisitions of OLAPLEX and ATP Adhesive Systems, contributing to growth and expanding market presence.
- Total investment of approximately EUR 5 billion across five acquisitions, expected to generate EUR 2 billion in sales by 2030.
- Initial positive contributions from acquisitions anticipated in fiscal 2026, with an expected sales contribution of EUR 700 million.

3) Market Dynamics and Segment Performance
- Adhesive Technologies showed strong growth, particularly in Electronics and Industrials, with 4.5% organic sales growth.
- Consumer Brands achieved 1.7% organic sales growth, driven by Hair Care, which grew over 4%.
- Laundry Care returned to positive growth in Q2 after a challenging Q1, with a focus on premiumization strategies.

4) Operational Investments and Innovations
- Continued investments in high-growth markets and innovation capabilities, including a new smart factory in China.
- Focus on sustainability with water-based specialty tapes and advanced adhesive solutions for automotive and electronics.
- Innovations in product offerings, particularly in Hair Care and Laundry segments, addressing market trends and consumer demands.

5) Guidance and Outlook
- Upgraded full-year guidance for organic sales growth to 1.5% - 3.5% for the Group and 2% - 4% for Adhesive Technologies.
- Adjusted EBIT margin guidance remains unchanged at 14.5% - 16%.
- Anticipated challenges in H2 due to raw material price headwinds, but overall confidence in long-term growth strategy.

Bottom line: Henkel's strong H1 performance, driven by effective M&A execution and robust growth in key segments, positions the company well for future success, despite anticipated challenges in the second half of 2026. Shareholders can expect continued growth and strategic advancements, particularly in high-potential markets.

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