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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on HEN3

Henkel AG & Co. KGaA's recent performance has been driven by the successful completion of its portfolio optimization in the consumer brands business, with the sale of its retailer brands business in North America, marking the conclusion of its announced strategy in February 2022. The company has sold or discontinued brands and activities for over €1 billion since 2022, streamlining its operations. Additionally, Henkel's strong commitment to diversity, equality, and sustainability, as demonstrated by its 100 rating in the Human Rights Campaign Foundation's Corporate Equality Index, has likely contributed to its positive momentum.

1.c. Company Highlights

2. Henkel's Q3 2025 Earnings: A Strong Acceleration in Top-Line Development

In Q3 2025, Henkel reported a clear acceleration in top-line development, with organic sales growth coming in at 1.4%, driven by positive volume development, while pricing was stable. The company's EPS came out at €2.65, significantly beating estimates of €1.32. Adhesive Technologies achieved organic sales growth of 2.5%, with positive pricing and good volume growth, while Consumer Brands generated sales growth of 0.4%, driven by positive volume development. The company's adjusted EBIT margin and adjusted EPS growth at constant currency remained within the current outlook ranges.

Publication Date: Nov -07

📋 Highlights
  • Adhesive Technologies Growth: Achieved 2.5% organic sales growth driven by Electronics Solutions (sustainability, mobility, digitalization megatrends).
  • Regional Performance: Asia Pacific surged 4.9% (China's Electronics), while Europe declined -2% amid pricing pressures in Laundry segment.
  • Share Buybacks: Executed €700 million buybacks by October, reflecting capital return focus despite cautious organic sales guidance (-1.5% in Laundry & Home Care).
  • Merger Progress: Near completion of merger expected by year-end, with €525 million productivity gains achieved (€275M from Phase 1, €250M from Phase 2).
  • Consumer Hair Business: Outperformed with >4% growth in Q3 (color/styling), maintaining high market entry barriers due to innovation and loyalty programs.

Business Unit Performance

Adhesive Technologies continued its robust growth trajectory, driven by strong growth in Electronics Solutions, which is benefiting from megatrends like sustainability, mobility, and digitalization. The business unit is well-positioned to capitalize on this momentum through its comprehensive and diversified portfolio. Consumer Brands saw strong growth in Hair, while Laundry & Home Care reported organic sales growth of -1.5%. The company's Hair business showed a strong growth in Q3, above 4%, with significant contributions from color and styling.

Regional Performance

The company's regional performance was mixed, with Asia Pacific seeing strong organic sales growth of 4.9%, driven by Electronics business in China, and India, Middle East, Africa showing double-digit growth of 10%. Latin America was below prior year, Europe came in at -2%, and North America achieved good growth of 2.3%. The company's expectations regarding foreign exchange, acquisitions, divestments, direct material prices, restructuring expenses, and CapEx for fiscal 2025 remain unchanged.

Outlook and Valuation

Henkel's guidance ranges for 2025 remain unchanged, with adjusted EBIT margin and adjusted EPS growth at constant currencies within current outlook ranges. However, if there is no noticeable improvement in the economic environment, organic sales growth is expected to come in at the lower end of the current guidance range. The company's P/E Ratio stands at 14.41, and its EV/EBITDA ratio is 8.12, indicating that the stock may be fairly valued. Analysts estimate next year's revenue growth at 1.2%, which is relatively modest.

Share Buyback and Dividend Yield

The company has executed around €700 million of its share buyback program by the end of October, demonstrating its commitment to returning value to shareholders. Henkel's Dividend Yield stands at 2.84%, which is relatively attractive compared to its peers. The company's ROIC stands at 7.98%, and its ROE is 9.99%, indicating a relatively efficient use of capital.

3. NewsRoom

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Henkel Delights U.S. Soccer Fans With Immersive Experiences at 'Henkel House', Showcasing How Winning Starts at Home

Nov -19

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Henkel (XTRA:HEN3): What Recent Weakness Means for Its Current Valuation

Nov -19

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Henkel Recognized as One of Canada's Top 100 Employers for Second Year

Nov -19

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Henkel Packaging RecycLab launches operations in China

Oct -28

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Meet Bill: Demonstrating the Power of Empathy and Advocacy

Oct -22

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Soccer for All: Henkel, U.S. Soccer, and AYSO Team Up for Community Clinics

Oct -09

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Henkel (XTRA:HEN3): Is the Stock Undervalued After Recent Gradual Price Moves?

Oct -03

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EMEA Sealants and Adhesives Market Growth Analysis, Forecast Trends and Outlook Report 2025-2034: Arkema, Henkel, Sika, and Evonik Lead Competitive Landscape with R&D Investments and Innovations

Oct -03

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.20%)

6. Segments

Adhesive Technologies

Expected Growth: None%

None

Consumer Brands

Expected Growth: None%

None

Corporate

Expected Growth: None%

None

7. Detailed Products

Adhesives

Henkel's adhesives are used in a wide range of industries, including packaging, electronics, and automotive. They offer a variety of adhesive technologies, including hotmelt, pressure-sensitive, and reactive adhesives.

Beauty Care

Henkel's Beauty Care segment offers a range of consumer and professional beauty products, including hair care, body care, and skin care products.

Laundry & Home Care

Henkel's Laundry & Home Care segment offers a range of laundry detergents, cleaning products, and air fresheners.

Industrial Adhesives

Henkel's Industrial Adhesives segment offers a range of adhesives and sealants for industrial applications, including automotive, electronics, and construction.

Surface Technologies

Henkel's Surface Technologies segment offers a range of surface treatment and coating products for the automotive, aerospace, and industrial industries.

8. Henkel AG & Co. KGaA's Porter Forces

Forces Ranking

Threat Of Substitutes

Henkel AG & Co. KGaA operates in a competitive market with many substitutes available, but the company's strong brand recognition and product differentiation mitigate the threat.

Bargaining Power Of Customers

Henkel AG & Co. KGaA has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong brand portfolio and product offerings give it an upper hand in negotiations.

Bargaining Power Of Suppliers

Henkel AG & Co. KGaA has a large supplier base, which reduces dependence on individual suppliers. However, the company's reliance on certain raw materials and logistics providers gives suppliers some bargaining power.

Threat Of New Entrants

The barriers to entry in Henkel AG & Co. KGaA's industries are relatively high, and the company's strong brand recognition and established distribution networks make it difficult for new entrants to gain traction.

Intensity Of Rivalry

Henkel AG & Co. KGaA operates in highly competitive markets, and the company faces intense rivalry from established players. The company's strong brand portfolio and product offerings help it to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 10.70%
Debt Cost 6.88%
Equity Weight 89.30%
Equity Cost 6.88%
WACC 6.88%
Leverage 11.99%

11. Quality Control: Henkel AG & Co. KGaA passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Reckitt Benckiser

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Value: 1.3

Growth: 5.4

Quality: 5.2

Yield: 6.2

Momentum: 9.0

Volatility: 9.0

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Henkel

A-Score: 5.6/10

Value: 6.0

Growth: 4.1

Quality: 6.9

Yield: 5.0

Momentum: 1.5

Volatility: 10.0

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Essity

A-Score: 5.5/10

Value: 5.1

Growth: 5.4

Quality: 5.7

Yield: 6.2

Momentum: 0.5

Volatility: 10.0

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L'Oréal

A-Score: 5.0/10

Value: 2.0

Growth: 5.9

Quality: 7.8

Yield: 3.1

Momentum: 3.0

Volatility: 8.0

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Unilever

A-Score: 4.9/10

Value: 2.0

Growth: 4.4

Quality: 5.0

Yield: 6.2

Momentum: 2.0

Volatility: 10.0

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Beiersdorf

A-Score: 4.1/10

Value: 2.1

Growth: 5.4

Quality: 6.4

Yield: 1.2

Momentum: 0.5

Volatility: 9.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

68.76$

Current Price

68.76$

Potential

-0.00%

Expected Cash-Flows