Henkel Ag Return On Equity vs. Profit Margin

HENOY Stock  USD 22.58  0.25  1.12%   
Considering the key profitability indicators obtained from Henkel Ag's historical financial statements, Henkel Ag A may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess Henkel Ag's ability to earn profits and add value for shareholders.
For Henkel Ag profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Henkel Ag to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Henkel Ag A utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Henkel Ag's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Henkel Ag A over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Henkel Ag's value and its price as these two are different measures arrived at by different means. Investors typically determine if Henkel Ag is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Henkel Ag's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Henkel Ag A Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Henkel Ag's current stock value. Our valuation model uses many indicators to compare Henkel Ag value to that of its competitors to determine the firm's financial worth.
Henkel Ag A is one of the top stocks in return on equity category among its peers. It also is one of the top stocks in profit margin category among its peers fabricating about  0.93  of Profit Margin per Return On Equity. The ratio of Return On Equity to Profit Margin for Henkel Ag A is roughly  1.07 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Henkel Ag by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Henkel Ag's Pink Sheet. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.

Henkel Profit Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Henkel Ag

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0581
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Henkel Ag

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.05 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Henkel Profit Margin Comparison

Henkel Ag is currently under evaluation in profit margin category among its peers.

Henkel Ag Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Henkel Ag, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Henkel Ag will eventually generate negative long term returns. The profitability progress is the general direction of Henkel Ag's change in net profit over the period of time. It can combine multiple indicators of Henkel Ag, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
KGaA, together with its subsidiaries, engages in the adhesive technologies, beauty care, and laundry and home care businesses worldwide. KGaA was founded in 1876 and is headquartered in Dsseldorf, Germany. Henkel Ag operates under Household Personal Products classification in the United States and is traded on OTC Exchange. It employs 51800 people.

Henkel Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Henkel Ag. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Henkel Ag position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Henkel Ag's important profitability drivers and their relationship over time.

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Our tools can tell you how much better you can do entering a position in Henkel Ag without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Use Investing Themes to Complement your Henkel Ag position

In addition to having Henkel Ag in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Additional Tools for Henkel Pink Sheet Analysis

When running Henkel Ag's price analysis, check to measure Henkel Ag's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Henkel Ag is operating at the current time. Most of Henkel Ag's value examination focuses on studying past and present price action to predict the probability of Henkel Ag's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Henkel Ag's price. Additionally, you may evaluate how the addition of Henkel Ag to your portfolios can decrease your overall portfolio volatility.