ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Henkel AG KGaA's annualized return on invested capital (ROIC %) for the quarter that ended in Dec. 2025 was 7.01%.
As of today (2026-06-24), Henkel AG KGaA's WACC % is 7.51%. Henkel AG KGaA's ROIC % is 7.65% (calculated using TTM income statement data).
Henkel AG KGaA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Henkel AG KGaA (XSWX:HEN3) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Henkel AG KGaA's WACC % is 7.51%. Henkel AG KGaA's ROIC % is 7.65% (calculated using TTM income statement data).
Henkel AG KGaA generates higher returns on investment than it costs the company to raise the capital needed for that investment. It is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Henkel AG KGaA ROIC % Related Terms
Henkel AG KGaA ROIC % Historical Data
* Premium members only.
The historical data trend for Henkel AG KGaA's ROIC % 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.
For the Household & Personal Products subindustry, Henkel AG KGaA's ROIC %, along with its competitors' market caps and ROIC % 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 ROIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Henkel AG KGaA's ROIC % distribution charts can be found below:
* The bar in red indicates where Henkel AG KGaA's ROIC % falls into.
Note:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
Henkel AG KGaA (XSWX:HEN3) has a ROIC % of 7.01% as of Dec. 2025. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Henkel AG KGaA and its competitors.
Is Henkel AG KGaA's ROIC % too high?
Henkel AG KGaA's current ROIC % is 7.01%. The Consumer Packaged Goods industry median ROIC % is 5.16. Henkel AG KGaA's value of 7.01% is 35.9% above this industry median. Overall, Henkel AG KGaA has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Henkel AG KGaA's ROIC % compare to PG and CL?
Henkel AG KGaA's ROIC % of 7.01% can be compared against companies in the Consumer Packaged Goods industry. The industry median ROIC % is 5.16. Henkel AG KGaA's value of 7.01% is 35.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for a Consumer Packaged Goods company?
The median ROIC % among Consumer Packaged Goods companies is 5.16, based on 1,948 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Henkel AG KGaA's current ROIC % of 7.01% is 35.9% 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 ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Henkel AG KGaA and its competitors. For the Consumer Packaged Goods industry, the median ROIC % is 5.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henkel AG KGaA's current ROIC % is 7.01%. 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?
Henkel AG KGaA (XSWX:HEN3) has a current ROIC % of 7.01%. The stock's GF Value™ is CHF64.12, compared to a current price of CHF63.74 — trading 0.6% below its estimated fair value. The current ROIC % is 7.01% and 35.9% above the Consumer Packaged Goods industry median of 5.16. 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 ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Henkel AG KGaA (XSWX:HEN3), the current ROIC % is 7.01% 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 (XSWX:HEN3) Overvalued in 2026?
Based on GuruFocus' analysis, Henkel AG KGaA stock appears to be undervalued.
The current stock price of CHF63.74 is trading 0.6% below its estimated GF Value™ of CHF64.12.
Key valuation signals for XSWX:HEN3:
ROIC %: 7.01%
GF Value™: CHF64.12 vs. price of CHF63.74 (0.6% below fair value)
Industry Position: 35.9% above the Consumer Packaged Goods median
No single metric tells the full story. See the XSWX:HEN3 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
Get the complete analysis for XSWX:HEN3
ROIC % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
XSWX:HEN3 has been successfully added to your 
