Definitive Analysis
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Henkel AG & Co. KGaA (HEN.DE)

Company Dividend Discount ModelIndustry: Household & Personal ProductsSector: Consumer Defensive

Valuation Snapshot

Stable Growth$104.89 - $173.20$135.19
Multi-Stage$209.10 - $229.95$219.32
Blended Fair Value$177.26
Current Price$66.66
Upside165.91%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS-0.69%3.92%1.841.841.901.901.901.901.841.661.511.35
YoY Growth--0.00%-3.02%-0.38%0.00%0.00%3.37%10.60%10.27%12.23%7.43%
Dividend Yield--2.17%2.51%2.92%2.68%2.06%2.06%1.92%1.53%1.33%1.30%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)3,871.00
(-) Cash Dividends Paid (M)1,621.00
(=) Cash Retained (M)2,250.00
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)774.20483.88290.33
Cash Retained (M)2,250.002,250.002,250.00
(-) Cash Required (M)-774.20-483.88-290.33
(=) Excess Retained (M)1,475.801,766.131,959.68
(/) Shares Outstanding (M)419.27419.27419.27
(=) Excess Retained per Share3.524.214.67
LTM Dividend per Share3.873.873.87
(+) Excess Retained per Share3.524.214.67
(=) Adjusted Dividend7.398.088.54
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate-0.58%0.42%1.42%
Fair Value$104.89$135.19$173.20
Upside / Downside57.36%102.81%159.83%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)3,871.003,887.363,903.793,920.283,936.853,953.494,072.09
Payout Ratio41.88%51.50%61.13%70.75%80.38%90.00%92.50%
Projected Dividends (M)1,621.002,002.002,386.202,773.613,164.253,558.143,766.69

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate6.42%6.42%6.42%
Growth Rate-0.58%0.42%1.42%
Year 1 PV (M)1,862.441,881.171,899.90
Year 2 PV (M)2,065.092,106.842,149.01
Year 3 PV (M)2,233.032,301.092,370.51
Year 4 PV (M)2,369.932,466.722,566.46
Year 5 PV (M)2,479.162,606.372,738.75
PV of Terminal Value (M)76,660.6480,594.2784,687.74
Equity Value (M)87,670.2891,956.4696,412.37
Shares Outstanding (M)419.27419.27419.27
Fair Value$209.10$219.32$229.95
Upside / Downside213.68%229.02%244.96%

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