| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 112.32 | 61 |
| Intrinsic value (DCF) | 32.55 | -53 |
| Graham-Dodd Method | 12.41 | -82 |
| Graham Formula | 40.69 | -42 |
Henkel AG & Co. KGaA is a global leader in adhesive technologies, beauty care, and laundry & home care products. Headquartered in Düsseldorf, Germany, Henkel operates through three key segments: Adhesive Technologies, Beauty Care, and Laundry & Home Care. The Adhesive Technologies segment provides high-performance adhesives, sealants, and functional coatings for industries such as automotive, electronics, and construction under brands like Loctite and Teroson. The Beauty Care segment offers hair and personal care products under well-known brands such as Schwarzkopf and Dial, distributed through salons, retail, and e-commerce. The Laundry & Home Care segment includes household cleaning and fabric care products under brands like Persil and Bref. Founded in 1876, Henkel has established a strong global presence, leveraging innovation and sustainability to maintain its competitive edge in the consumer defensive sector. With a market capitalization of approximately €27.9 billion, Henkel remains a key player in the household and personal products industry.
Henkel presents a stable investment opportunity within the consumer defensive sector, supported by its diversified product portfolio and strong brand recognition. The company's adhesive technologies segment is a key growth driver, benefiting from industrial and automotive demand. However, the beauty care and home care segments face intense competition and margin pressures. Henkel's solid balance sheet, with €2.89 billion in cash and €4.29 billion in debt, provides financial flexibility. The dividend yield, supported by a €2.02 per share payout, adds appeal for income-focused investors. Risks include exposure to raw material price volatility and slower growth in mature markets. Overall, Henkel's defensive positioning and innovation capabilities make it a resilient choice in uncertain economic conditions.
Henkel's competitive advantage lies in its diversified business model and strong brand equity across adhesive technologies, beauty care, and home care segments. In adhesives, Henkel is a market leader with a broad product portfolio catering to industrial and consumer applications, supported by R&D and technical expertise. The beauty care segment competes with global personal care giants, where Henkel's Schwarzkopf brand holds a niche in professional hair care but faces challenges from mass-market competitors. In laundry and home care, Henkel's Persil and Bref brands compete with Procter & Gamble and Unilever, where scale and marketing spend are critical. Henkel's focus on sustainability and digital transformation enhances its competitive positioning. However, the company's growth is tempered by slower innovation cycles in adhesives and pricing pressures in consumer goods. Strategic acquisitions and partnerships could bolster its market share, but execution risks remain.