HONEST CO INC/THE (HNST)
US4383331067 - Common Stock
Taking everything into account, HNST scores 3 out of 10 in our fundamental rating. 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year HNST has reported negative net income.
In the past year HNST had a positive cash flow from operations.
In the past 5 years HNST always reported negative net income.
HNST had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a Return On Assets value of -6.21%, HNST is not doing good in the industry: 65.71% of the companies in the same industry are doing better.
The Return On Equity of HNST (-9.59%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -9.59% | ||
| 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
HNST's Gross Margin of 35.12% is on the low side compared to the rest of the industry. HNST is outperformed by 71.43% of its industry peers.
HNST's Gross Margin has declined in the last couple of years.
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 | 35.12% |
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.
The number of shares outstanding for HNST has been increased compared to 1 year ago.
Compared to 1 year ago, HNST has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.94 indicates that HNST is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HNST (2.94) is comparable to the rest of the industry.
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 | 2.94 |
ROIC/WACCN/A
WACC9.07%
2.3 Liquidity
A Current Ratio of 3.06 indicates that HNST has no problem at all paying its short term obligations.
The Current ratio of HNST (3.06) is better than 80.00% of its industry peers.
HNST has a Quick Ratio of 1.67. This is a normal value and indicates that HNST is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.67, HNST is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.67 |
3. Growth
3.1 Past
HNST shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 92.98%, which is quite impressive.
Looking at the last year, HNST shows a quite strong growth in Revenue. The Revenue has grown by 9.78% in the last year.
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)9.78%
Revenue growth 3Y4.65%
Revenue growth 5YN/A
Sales Q2Q%15.17%
3.2 Future
Based on estimates for the next years, HNST will show a very strong growth in Earnings Per Share. The EPS will grow by 20.90% on average per year.
Based on estimates for the next years, HNST will show a small growth in Revenue. The Revenue will grow by 5.98% on average per year.
EPS Next Y72.24%
EPS Next 2Y38.95%
EPS Next 3Y27.5%
EPS Next 5Y20.9%
Revenue Next Year8.98%
Revenue Next 2Y6.94%
Revenue Next 3Y6.4%
Revenue Next 5Y5.98%
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.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for HNST. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
HNST's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.19 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
HNST's earnings are expected to grow with 27.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y38.95%
EPS Next 3Y27.5%
5. Dividend
5.1 Amount
No dividends for HNST!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
HONEST CO INC/THE
NASDAQ:HNST (11/13/2024, 8:00:01 PM)
Premarket: 6.41 +0.4 (+6.66%)6.01
+1.21 (+25.21%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap601.48M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.21% | ||
| ROE | -9.59% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.06 | ||
| Quick Ratio | 1.67 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)92.98%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y72.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.78%
Revenue growth 3Y4.65%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y