Logo image of HNST

HONEST CO INC/THE (HNST) Stock Fundamental Analysis

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

5.4  +0.4 (+7.89%)

Premarket: 5.47 +0.07 (+1.3%)

Fundamental Rating

3

Taking everything into account, HNST scores 3 out of 10 in our fundamental rating. HNST was compared to 37 industry peers in the Personal Care Products industry. While HNST has a great health rating, there are worries on its profitability. HNST has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

Quickly go to:

1

1. Profitability

1.1 Basic Checks

HNST had negative earnings in the past year.
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.
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

HNST's Return On Assets of -1.99% is in line compared to the rest of the industry. HNST outperforms 44.44% of its industry peers.
HNST has a Return On Equity (-3.12%) which 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 Gross Margin of 36.91%. This is in the lower half of the industry: HNST underperforms 72.22% of its industry peers.
In the last couple of years the Gross Margin of HNST has declined.
The Profit Margin and Operating Margin are not available for HNST so they could not be analyzed.
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

More info and screens

7

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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 3.45 indicates that HNST is not in any danger for bankruptcy at the moment.
HNST has a Altman-Z score of 3.45. This is in the better half of the industry: HNST outperforms 61.11% 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 3.45
ROIC/WACCN/A
WACC8.93%
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.
HNST has a better Current ratio (2.89) than 75.00% 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 72.22% of the companies in the same industry.
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

More info and screens

2

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 85.71% over the past year.
EPS 1Y (TTM)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.61%

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 66.09% on average per year.
The Revenue is expected to grow by 5.89% on average over the next years.
EPS Next Y188.4%
EPS Next 2Y96.72%
EPS Next 3Y77.26%
EPS Next 5Y66.09%
Revenue Next Year5.81%
Revenue Next 2Y5.88%
Revenue Next 3Y5.85%
Revenue Next 5Y5.89%

3.3 Evolution

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

More info and screens

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for HNST. In the last year negative earnings were reported.
A Price/Forward Earnings ratio of 101.81 indicates a quite expensive valuation of HNST.
HNST's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.66. HNST is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 101.81
HNST Price Earnings VS Forward Price EarningsHNST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50 100

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, HNST is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.58
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HNST's earnings are expected to grow with 77.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y96.72%
EPS Next 3Y77.26%

More info and screens

0

5. Dividend

5.1 Amount

HNST does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

HONEST CO INC/THE

NASDAQ:HNST (2/28/2025, 8:00:01 PM)

Premarket: 5.47 +0.07 (+1.3%)

5.4

+0.4 (+7.89%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-06 2025-05-06/amc
Inst Owners68.22%
Inst Owner Change8.98%
Ins Owners15.25%
Ins Owner Change-7.74%
Market Cap545.18M
Analysts77.14
Price Target7.48 (38.52%)
Short Float %6.48%
Short Ratio1.93
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)0.65%
PT rev (3m)6.94%
EPS NQ rev (1m)25%
EPS NQ rev (3m)30%
EPS NY rev (1m)6.66%
EPS NY rev (3m)6.66%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.04%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 101.81
P/S 1.48
P/FCF 19.58
P/OCF 19.27
P/B 4.07
P/tB 4.15
EV/EBITDA N/A
EPS(TTM)-0.06
EYN/A
EPS(NY)0.05
Fwd EY0.98%
FCF(TTM)0.28
FCFY5.11%
OCF(TTM)0.28
OCFY5.19%
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 3.45
F-Score6
WACC8.93%
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)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y188.4%
EPS Next 2Y96.72%
EPS Next 3Y77.26%
EPS Next 5Y66.09%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%10.61%
Revenue Next Year5.81%
Revenue Next 2Y5.88%
Revenue Next 3Y5.85%
Revenue Next 5Y5.89%
EBIT growth 1Y91.96%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year146.18%
EBIT Next 3Y42.02%
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