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HONEST CO INC/THE (HNST) Stock Fundamental Analysis

NASDAQ:HNST - Nasdaq - US4383331067 - Common Stock - Currency: USD

6.7  +0.42 (+6.69%)

After market: 6.7 0 (0%)

Fundamental Rating

3

Overall HNST gets a fundamental rating of 3 out of 10. We evaluated HNST against 37 industry peers in the Personal Care Products industry. While HNST has a great health rating, there are worries on its profitability. HNST is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

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.
HNST had negative earnings in each of the past 5 years.
HNST had negative operating cash flow in 4 of the past 5 years.
HNST Yearly Net Income VS EBIT VS OCF VS FCFHNST Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 0 -20M -40M -60M

1.2 Ratios

The Return On Assets of HNST (-1.99%) is comparable to the rest of the industry.
The Return On Equity of HNST (-3.12%) is comparable to the rest of the industry.
Industry RankSector 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
HNST Yearly ROA, ROE, ROICHNST Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 -10 -20 -30

1.3 Margins

HNST has a worse Gross Margin (36.91%) than 75.00% of its industry peers.
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 RankSector 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
HNST Yearly Profit, Operating, Gross MarginsHNST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 0 10 -10 20 30

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7

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.
HNST has a better debt/assets ratio than last year.
HNST Yearly Shares OutstandingHNST Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 20M 40M 60M 80M
HNST Yearly Total Debt VS Total AssetsHNST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 50M 100M 150M 200M 250M

2.2 Solvency

An Altman-Z score of 4.49 indicates that HNST is not in any danger for bankruptcy at the moment.
HNST has a Altman-Z score of 4.49. This is in the better half of the industry: HNST outperforms 63.89% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.49
ROIC/WACCN/A
WACC9.19%
HNST Yearly LT Debt VS Equity VS FCFHNST Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 0 50M -50M 100M 150M

2.3 Liquidity

HNST has a Current Ratio of 2.89. This indicates that HNST is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.89, HNST is doing good in the industry, outperforming 75.00% of the companies in the same industry.
HNST has a Quick Ratio of 1.64. This is a normal value and indicates that HNST is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of HNST (1.64) is better than 72.22% of its industry peers.
Industry RankSector Rank
Current Ratio 2.89
Quick Ratio 1.64
HNST Yearly Current Assets VS Current LiabilitesHNST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 92.98% over the past year.
The Revenue has grown by 9.77% in the past year. This is quite good.
The Revenue has been growing slightly by 4.65% on average over the past years.
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

Based on estimates for the next years, HNST will show a very strong growth in Earnings Per Share. The EPS will grow by 22.88% on average per year.
The Revenue is expected to grow by 6.88% on average over the next years.
EPS Next Y82.65%
EPS Next 2Y44.25%
EPS Next 3Y29.79%
EPS Next 5Y22.88%
Revenue Next Year10.89%
Revenue Next 2Y8.33%
Revenue Next 3Y7.51%
Revenue Next 5Y6.88%

3.3 Evolution

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
HNST Yearly Revenue VS EstimatesHNST Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100M 200M 300M 400M
HNST Yearly EPS VS EstimatesHNST Yearly EPS VS EstimatesYearly EPS VS Estimates 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 0 0.2 -0.2 -0.4

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2

4. Valuation

4.1 Price/Earnings Ratio

HNST reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
A Price/Forward Earnings ratio of 197.08 indicates a quite expensive valuation of HNST.
The rest of the industry has a similar Price/Forward Earnings ratio as HNST.
The average S&P500 Price/Forward Earnings ratio is at 93.88. HNST is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 197.08
HNST Price Earnings VS Forward Price EarningsHNST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 100 -100

4.2 Price Multiples

63.89% of the companies in the same industry are more expensive than HNST, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 24.29
EV/EBITDA N/A
HNST Per share dataHNST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as HNST's earnings are expected to grow with 29.79% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y44.25%
EPS Next 3Y29.79%

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0

5. Dividend

5.1 Amount

No dividends for HNST!.
Industry RankSector Rank
Dividend Yield N/A

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HONEST CO INC/THE

NASDAQ:HNST (1/30/2025, 8:00:01 PM)

After market: 6.7 0 (0%)

6.7

+0.42 (+6.69%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)11-12 2024-11-12/amc
Earnings (Next)N/A N/A
Inst Owners43.36%
Inst Owner Change-0.48%
Ins Owners15.09%
Ins Owner Change-8.49%
Market Cap676.43M
Analysts77.14
Price Target7.29 (8.81%)
Short Float %4.73%
Short Ratio0.96
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly Dividend0
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)4.17%
PT rev (3m)32.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.14%
EPS NY rev (1m)0%
EPS NY rev (3m)35.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.82%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 197.08
P/S 1.83
P/FCF 24.29
P/OCF 23.91
P/B 5.05
P/tB 5.15
EV/EBITDA N/A
EPS(TTM)-0.04
EYN/A
EPS(NY)0.03
Fwd EY0.51%
FCF(TTM)0.28
FCFY4.12%
OCF(TTM)0.28
OCFY4.18%
SpS3.65
BVpS1.33
TBVpS1.3
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 4.49
F-Score6
WACC9.19%
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 2Y8.33%
Revenue Next 3Y7.51%
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