Is Henkel (HEN3) Halal?

XETRA Consumer Defensive Germany $27.2B
✓ HALAL
Confidence: 95/100
Henkel (HEN3) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 13.7% against the AAOIFI threshold of 30%, Henkel comfortably passes the key financial ratio tests. The company operates in the Consumer Defensive sector (Household & Personal Products), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 13.7%
/ 30%
11.3%
/ 30%
11.3%
/ 30%
0.49%
/ 5%
✓ HALAL
DJIM 13.7%
/ 33%
11.3%
/ 33%
11.3%
/ 33%
0.49%
/ 5%
✓ HALAL
MSCI 12.2%
/ 33%
10.0%
/ 33%
10.0%
/ 33%
0.49%
/ 5%
✓ HALAL
S&P 13.7%
/ 33%
11.3%
/ 33%
11.3%
/ 33%
0.49%
/ 5%
✓ HALAL
FTSE 12.2%
/ 33%
10.0%
/ 33%
10.0%
/ 50%
0.49%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
13.6
Forward: 11.5
EPS
$4.92
Dividend Yield
310.0%
Payout: 41.5%
P/B Ratio
1.3
EV/EBITDA
8.6
EV: $27.8B
Revenue
$20.5B
Growth: -6.3%
Beta
0.5
Low volatility
Current Ratio
1.2

Profitability

Gross Margin 50.8%
Operating Margin 12.0%
Net Margin 9.9%
Return on Equity (ROE) 9.7%
Return on Assets (ROA) 5.1%

Cash Flow & Balance Sheet

Operating Cash Flow$2.5B
Free Cash Flow$1.8B
Total Debt$3.7B
Debt-to-Equity18.0
Current Ratio1.2
Total Assets$32.5B

Price & Trading

Last CloseEUR 67.84
50-Day MAEUR 75.29
200-Day MAEUR 71.48
Avg Volume457K
Beta0.5
52-Week Range
EUR 64.42
EUR 84.20

About Henkel (HEN3)

CEO
Dr. Carsten Knobel
Employees
42,200
Sector
Consumer Defensive
Industry
Household & Personal Products
Country
Germany
Exchange
XETRA
Market Cap
$27.2B
Currency
EUR

Henkel AG & Co. KGaA, together with its subsidiaries, engages in the adhesive technologies and consumer brands businesses in Europe, India, the Middle East, Africa, North America, Latin America, the Asia Pacific. It offers adhesives, sealants, and functional coatings for various business areas, including packaging and consumer goods; mobility and electronics; and craftsmen, construction, and professional industries. The company also provides hair styling, hair colorants, and hair care products; and body care products, as well as distributes its products through brick-and-mortar stores, hair salons, and digital channels. In addition, it offers laundry and home care products, such as heavy-duty and specialty detergents, fabric softeners and laundry additives, and other fabric cleaning and fabric care products; dishwashing products; and hard surface and toilet cleaners. Further, the company provides household cleaners products. The company was founded in 1876 and is headquartered in Düsseldorf, Germany.

Purification Calculator

As a halal stock with 0.49% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Henkel (HEN3) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Henkel is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Henkel's debt ratio?

Henkel's debt ratio is 13.7% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 12.2%.

Does Henkel require dividend purification?

Yes, Henkel has an impermissible income ratio of 0.49%, which means 0.49% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Henkel's key financial metrics?

Henkel has a market capitalization of $27.2B, trailing P/E ratio of 13.6, and revenue of $20.5B. The company maintains a gross margin of 50.8% and a net margin of 9.9%. Return on equity stands at 9.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.