Henkel AG KGaAHENOF 76 Return-on-Tangible-Equity is 62.17% as of Dec. 2025, which is 15% below its 10-year median of 73.36. GuruFocus rates HENOF with a GF Score™ of 76/100 and a GF Value™ of $83.73 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,873 Consumer Packaged Goods companies, Henkel AG KGaA ranks better than 94.07% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Henkel AG KGaA's annualized net income for the quarter that ended in Dec. 2025 was $2,166 Mil. Henkel AG KGaA's average shareholder tangible equity for the quarter that ended in Dec. 2025 was $3,485 Mil. Therefore, Henkel AG KGaA's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 62.17%.
The historical rank and industry rank for Henkel AG KGaA's Return-on-Tangible-Equity or its related term are showing as below:
HENOF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 44.56 Med: 73.36 Max: 1707.75
Current: 68.17
During the past 13 years, Henkel AG KGaA's highest Return-on-Tangible-Equity was 1,707.75%. The lowest was 44.56%. And the median was 73.36%.
HENOF's Return-on-Tangible-Equity is ranked better than 94.07% of 1873
companies
in the Consumer Packaged Goods industry
Industry Median: 7.72
vs HENOF: 68.17
Henkel AG KGaA (OTCPK:HENOF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Henkel AG KGaA Return-on-Tangible-Equity Related Terms
Henkel AG KGaA Return-on-Tangible-Equity Historical Data
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The historical data trend for Henkel AG KGaA's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HENOF vs PG, CL, KVUE: Return-on-Tangible-Equity Comparison
For the Household & Personal Products subindustry, Henkel AG KGaA's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Henkel AG KGaA Return-on-Tangible-Equity vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Henkel AG KGaA's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Henkel AG KGaA's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 62.17% mean?
Henkel AG KGaA (HENOF) has a Return-on-Tangible-Equity of 62.17% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Henkel AG KGaA and its competitors. This is 15% below median its historical median of 73.36. Over the past decade, Henkel AG KGaA's Return-on-Tangible-Equity has ranged from 44.56 to 1,707.75. According to the industry distribution chart, Henkel AG KGaA ranks #111 out of 1873 companies in the Consumer Packaged Goods industry, placing it in the top 5.9%.
Is Henkel AG KGaA's Return-on-Tangible-Equity too high?
Henkel AG KGaA's current Return-on-Tangible-Equity of 62.17% is 15% below median its 10-year median of 73.36. Over the past 10 years, this metric has ranged from a low of 44.56 to a high of 1,707.75. The Consumer Packaged Goods industry median Return-on-Tangible-Equity is 7.72. Henkel AG KGaA's value of 62.17% is 705.3% above this industry median. Based on the distribution chart, Henkel AG KGaA ranks #111 out of 1873 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Henkel AG KGaA has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henkel AG KGaA's Return-on-Tangible-Equity compare to PG and CL?
According to the Consumer Packaged Goods industry distribution chart, Henkel AG KGaA ranks #111 out of 1873 companies for Return-on-Tangible-Equity. This places Henkel AG KGaA in the top 6% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.72. Henkel AG KGaA's value of 62.17% is 705.3% above this benchmark. Historically, Henkel AG KGaA's own Return-on-Tangible-Equity has ranged from 44.56 to 1,707.75 over the past decade. While the company's 10-year median is 73.36 vs. the industry median of 7.72, Henkel AG KGaA has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Consumer Packaged Goods company?
The median Return-on-Tangible-Equity among Consumer Packaged Goods companies is 7.72, based on 1,873 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Henkel AG KGaA's current Return-on-Tangible-Equity of 62.17% is 705.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Henkel AG KGaA and its competitors. For the Consumer Packaged Goods industry, the median Return-on-Tangible-Equity is 7.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henkel AG KGaA's current Return-on-Tangible-Equity is 62.17%, which is 15% below median its own 10-year median of 73.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henkel AG KGaA stock overvalued right now?
Based on GuruFocus' analysis, Henkel AG KGaA (HENOF) is currently considered Modestly Undervalued. The stock's GF Value™ is $83.73, compared to a current price of $74.64 — trading 10.9% below its estimated fair value. The current Return-on-Tangible-Equity is 62.17%, which is 15% below median its 10-year median of 73.36 and 705.3% above the Consumer Packaged Goods industry median of 7.72. Henkel AG KGaA's overall GF Score™ is 76/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Henkel AG KGaA (HENOF), the current Return-on-Tangible-Equity is 62.17% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Henkel AG KGaA (HENOF) Overvalued in 2026?
Based on GuruFocus' analysis, Henkel AG KGaA stock appears to be undervalued.
The current stock price of $74.64 is trading 10.9% below its estimated GF Value™ of $83.73.
GuruFocus considers Henkel AG KGaA to be Modestly Undervalued.
Key valuation signals for HENOF:
Return-on-Tangible-Equity: 62.17% (15% below median its 10-year median of 73.36)
GF Value™: $83.73 vs. price of $74.64 (10.9% below fair value)
Industry Position: 705.3% above the Consumer Packaged Goods median (#111 of 1873)
No single metric tells the full story. See the HENOF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Two distinct customer groups constitute Henkel. The consumer segment (around 47% of consolidated 2025 sales) is laundry and homecare, including the Persil and Purex laundry detergent brands; haircare, including the Schwarzkopf brand; and other brands, including Dial in hand soap. The adhesive technologies segment makes up the remaining 53% of sales. Sales in Europe accounted for 38% of the firm's consolidated total in 2025, while Asia-Pacific and North America accounted for 17% and 26%, respectively.
76GF Score
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