Henkel: Cheap Enough To Ignore Its Growth Problem

2026-06-05 23:30:16 ET

On January 21, 2026, I published my last article about the German consumer goods company Henkel AG ( HENKY ). I was once again bullish about the stock and even argued that Henkel might be deeply undervalued. In the conclusion of my last article, I wrote:

We should not expect Henkel to grow at a high pace in the years to come and probably expect low-to-mid single-digit growth rates at best. However, even when calculating with rather low growth rates, the stock has to be seen as undervalued. The free cash flow of the last four quarters as well as 4% growth are rather moderate assumptions.

I still think Henkel is a solid long-term investment, and, in my opinion, the stock price should move higher at some point. While I don't see the potential for explosive growth, an investment should be able to return 10% in the long run, and the company is also rather recession-resilient, which is a good quality for a stable, long-term investment.

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