HONEST CO INC/THE (HNST)
US4383331067 - Common Stock
We assign a fundamental rating of 3 out of 10 to HNST. HNST was compared to 36 industry peers in the Personal Care Products industry. No worries on liquidiy or solvency for HNST as it has an excellent financial health rating, but there are worries on the profitability. HNST is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HNST has reported negative net income.
HNST had a positive operating cash flow in the past year.
HNST had negative earnings in each of the past 5 years.
HNST had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
HNST's Return On Assets of -1.99% is on the low side compared to the rest of the industry. HNST is outperformed by 60.00% of its industry peers.
HNST's Return On Equity of -3.12% is in line compared to the rest of the industry. HNST outperforms 45.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -3.12% | ||
| ROIC | N/A |
ROA(3y)-16.98%
ROA(5y)-14.05%
ROE(3y)-27.42%
ROE(5y)-22.79%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 36.91%, HNST is doing worse than 71.43% of the companies in the same industry.
In the last couple of years the Gross Margin of HNST has declined.
HNST does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.91% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.67%
GM growth 5YN/A
2. Health
2.1 Basic Checks
HNST does not have a ROIC to compare to the WACC, probably because it is not profitable.
HNST has more shares outstanding than it did 1 year ago.
Compared to 1 year ago, HNST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.65 indicates that HNST is not in any danger for bankruptcy at the moment.
HNST has a Altman-Z score of 4.65. This is in the better half of the industry: HNST outperforms 62.86% of its industry peers.
There is no outstanding debt for HNST. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.65 |
ROIC/WACCN/A
WACC9.16%
2.3 Liquidity
A Current Ratio of 2.89 indicates that HNST has no problem at all paying its short term obligations.
The Current ratio of HNST (2.89) is better than 74.29% of its industry peers.
A Quick Ratio of 1.64 indicates that HNST should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.64, HNST is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 92.98% over the past year.
HNST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.77%.
Measured over the past years, HNST shows a small growth in Revenue. The Revenue has been growing by 4.65% on average per year.
EPS 1Y (TTM)92.98%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y4.65%
Revenue growth 5YN/A
Sales Q2Q%15.17%
3.2 Future
The Earnings Per Share is expected to grow by 22.88% on average over the next years. This is a very strong growth
Based on estimates for the next years, HNST will show a small growth in Revenue. The Revenue will grow by 6.88% on average per year.
EPS Next Y82.65%
EPS Next 2Y44.25%
EPS Next 3Y29.79%
EPS Next 5Y22.88%
Revenue Next Year10.89%
Revenue Next 2Y8.31%
Revenue Next 3Y7.49%
Revenue Next 5Y6.88%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HNST. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 195.61, which means the current valuation is very expensive for HNST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HNST is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, HNST is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 195.61 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HNST is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.11 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HNST does not grow enough to justify the current Price/Earnings ratio.
HNST's earnings are expected to grow with 29.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.25%
EPS Next 3Y29.79%
5. Dividend
5.1 Amount
No dividends for HNST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HONEST CO INC/THE
NASDAQ:HNST (12/23/2024, 11:40:04 AM)
6.65
-0.24 (-3.48%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners43.36%
Inst Owner Change-7.43%
Ins Owners15.09%
Ins Owner Change-8.59%
Market Cap671.38M
Analysts78.57
Price Target6.99 (5.11%)
Short Float %1.99%
Short Ratio0.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)54.75%
Min EPS beat(2)9.5%
Max EPS beat(2)100%
EPS beat(4)4
Avg EPS beat(4)77.1%
Min EPS beat(4)9.5%
Max EPS beat(4)112.57%
EPS beat(8)5
Avg EPS beat(8)10.08%
EPS beat(12)5
Avg EPS beat(12)-6.06%
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)4.73%
Min Revenue beat(2)4.49%
Max Revenue beat(2)4.97%
Revenue beat(4)4
Avg Revenue beat(4)4.03%
Min Revenue beat(4)1.49%
Max Revenue beat(4)5.17%
Revenue beat(8)7
Avg Revenue beat(8)4.81%
Revenue beat(12)8
Avg Revenue beat(12)2.5%
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)31.66%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.14%
EPS NY rev (1m)37.5%
EPS NY rev (3m)35.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)1.75%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 195.61 | ||
| P/S | 1.82 | ||
| P/FCF | 24.11 | ||
| P/OCF | 23.73 | ||
| P/B | 5.02 | ||
| P/tB | 5.11 | ||
| EV/EBITDA | N/A |
EPS(TTM)-0.04
EYN/A
EPS(NY)0.03
Fwd EY0.51%
FCF(TTM)0.28
FCFY4.15%
OCF(TTM)0.28
OCFY4.21%
SpS3.65
BVpS1.33
TBVpS1.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.99% | ||
| ROE | -3.12% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 36.91% | ||
| FCFM | 7.55% |
ROA(3y)-16.98%
ROA(5y)-14.05%
ROE(3y)-27.42%
ROE(5y)-22.79%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-6.67%
GM growth 5YN/A
F-Score6
Asset Turnover1.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 15.5% | ||
| Cap/Sales | 0.12% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.89 | ||
| Quick Ratio | 1.64 | ||
| Altman-Z | 4.65 |
F-Score6
WACC9.16%
ROIC/WACCN/A
Cap/Depr(3y)43.89%
Cap/Depr(5y)28.88%
Cap/Sales(3y)0.37%
Cap/Sales(5y)0.29%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)92.98%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%100%
EPS Next Y82.65%
EPS Next 2Y44.25%
EPS Next 3Y29.79%
EPS Next 5Y22.88%
Revenue 1Y (TTM)9.77%
Revenue growth 3Y4.65%
Revenue growth 5YN/A
Sales Q2Q%15.17%
Revenue Next Year10.89%
Revenue Next 2Y8.31%
Revenue Next 3Y7.49%
Revenue Next 5Y6.88%
EBIT growth 1Y91.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.18%
EBIT Next 3Y40.19%
EBIT Next 5Y29.45%
FCF growth 1Y151.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y153.93%
OCF growth 3YN/A
OCF growth 5YN/A