- Henkel shares are trading at a significant discount to fair value due to operational problems in the personal care business and the ongoing war in Ukraine.
- The company will exit its business in Russia. As a result, and due to input cost inflation, Henkel's operating margin is expected to decrease by 250 basis points in 2022.
- However, since the company is family-controlled and operates with a virtually debt-free balance sheet, Henkel is again expected to navigate troubled waters well.
- For the first time in twenty years, Henkel's preferred shares are trading at the same level as its ordinary shares, representing an interesting trading opportunity for investors.
- Particularly in the event of a resurgence of market pessimism or a further escalation of the war, the preferred shares are expected to mean-revert, thereby limiting the downside considerably.
For further details see:
Henkel: A Once In A Lifetime Trading Opportunity