Steven Romick trimmed his stake in Henkel (XTER:HEN, Financial) by 11.83%, selling 151,340 shares in the second quarter.
The company is headquartered in Düsseldorf, Germany, and it operates its business worldwide in three segments: Adhesive Technologies, Beauty Care and Laundry & Home Care.
Henkel’s largest business area is its adhesive solutions segment. The company learned the benefit of using adhesive technologies in 1923 through an accidental discovery after the labeling of some of its own consumer products was threatened due to an interruption in the glue supply.
Henkel saw there was hidden opportunity in adhesive technologies, and it began to produce its own adhesives. Fast forward 93 years later, and the largest segment of Henkel's business is now its adhesive technologies. The company provides adhesive technologies for packaging and consumer goods, transport and metal, electronics as well as consumers, craftsmen and building. Its top brands for its adhesive technologies are Loctite, Technomelt and Teroson.
The Henkel beauty care segment of its business consists of hair colorants, hair styling, hair care, body care, skin care and oral care. The company’s products are sold in more than 150 countries worldwide, and its top brands are Schwarzkopf, Dial and Syoss.
The laundry & home care business area of Henkel began in 1876 after Fritz Henkel founded the company Henkel & Cie in Aachen, Germany. The company’s first product was a laundry detergent based on sodium silicate named “Universal-Waschmittel” which is known as universal detergent in English. Henkel’s current portfolio for laundry & home care is listed as follows: laundry detergents, laundry additives, dishwashing, hard surface cleaners, toilet care, air care, and insecticides.
Henkel has a market cap of €41.93 billion, a P/E ratio of 21.44, an enterprise value of €41.2 billion and a P/B ratio of 3.10.
According to GuruFocus the company has an 8/10 financial strength rating with a 7/10 profitability and growth rating.
It is possible Romick decided to reduce his position in Henkel because the company reached its 10-year high in price during the second quarter. Since the fourth quarter of 2012, Romick has profited an estimated return of nearly 65% on his investment in Henkel, according to GuruFocus.
Romick is one of the few mutual fund managers who has been able to outperform the Standard & Poor's 500 over a long period of time. Since the FPA Crescent Fund’s inception in 1994, the mutual fund has returned an estimated 10.2% profit, which marginally outperforms the S&P 500.
Cheers to your investment success.
Disclosure: Author does not own any shares of Henkel.
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