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HONEST CO INC/THE (HNST) Stock Fundamental Analysis

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

4.69  +0.32 (+7.32%)

After market: 4.66 -0.03 (-0.64%)

Fundamental Rating

3

Overall HNST gets a fundamental rating of 3 out of 10. We evaluated HNST against 35 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 has reported a negative cash flow from operations.
HNST had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: HNST reported negative operating cash flow in multiple 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 2024 0 -20M -40M -60M

1.2 Ratios

HNST has a Return On Assets (-0.55%) which is in line with its industry peers.
HNST's Return On Equity of -0.81% is in line compared to the rest of the industry. HNST outperforms 57.14% of its industry peers.
Industry RankSector Rank
ROA -0.55%
ROE -0.81%
ROIC N/A
ROA(3y)-14.1%
ROA(5y)-11.89%
ROE(3y)-22.95%
ROE(5y)-19.23%
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 2024 -10 -20 -30

1.3 Margins

With a Gross Margin value of 38.64%, HNST is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of HNST has grown nicely.
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 38.64%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.71%
GM growth 5Y3.49%
HNST Yearly Profit, Operating, Gross MarginsHNST Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 2024 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 more shares outstanding than it did 5 years ago.
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 2024 20M 40M 60M 80M 100M
HNST Yearly Total Debt VS Total AssetsHNST Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

2.2 Solvency

HNST has an Altman-Z score of 3.02. This indicates that HNST is financially healthy and has little risk of bankruptcy at the moment.
HNST has a Altman-Z score (3.02) which 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 RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 3.02
ROIC/WACCN/A
WACC9.02%
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 2024 0 50M -50M 100M 150M

2.3 Liquidity

A Current Ratio of 3.17 indicates that HNST has no problem at all paying its short term obligations.
HNST has a Current ratio of 3.17. This is in the better half of the industry: HNST outperforms 80.00% of its industry peers.
HNST has a Quick Ratio of 1.95. 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 1.95, HNST is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.17
Quick Ratio 1.95
HNST Yearly Current Assets VS Current LiabilitesHNST Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 91.30% over the past year.
Looking at the last year, HNST shows a quite strong growth in Revenue. The Revenue has grown by 12.15% in the last year.
The Revenue has been growing by 9.94% on average over the past years. This is quite good.
EPS 1Y (TTM)91.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%12.8%

3.2 Future

The Earnings Per Share is expected to grow by 66.09% on average over the next years. This is a very strong growth
HNST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y230.34%
EPS Next 2Y91.47%
EPS Next 3Y67.74%
EPS Next 5Y66.09%
Revenue Next Year5.89%
Revenue Next 2Y5.39%
Revenue Next 3Y5.27%
Revenue Next 5Y5.89%

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less 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 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

The Price/Earnings Ratio is negative for HNST. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 46.92, which means the current valuation is very expensive for HNST.
HNST's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.19. HNST is valued rather expensively when compared to this.
Industry RankSector Rank
PE N/A
Fwd PE 46.92
HNST Price Earnings VS Forward Price EarningsHNST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 -50 -100 -150 -200

4.2 Price Multiples

HNST's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. HNST is more expensive than 62.86% of the companies in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 1228.02
HNST Per share dataHNST EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 1 2 3

4.3 Compensation for Growth

HNST's 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 67.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y91.47%
EPS Next 3Y67.74%

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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 (6/20/2025, 4:36:08 PM)

After market: 4.66 -0.03 (-0.64%)

4.69

+0.32 (+7.32%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)05-07 2025-05-07/amc
Earnings (Next)08-06 2025-08-06/amc
Inst Owners61.78%
Inst Owner Change4.06%
Ins Owners14.27%
Ins Owner Change3.04%
Market Cap517.03M
Analysts78.46
Price Target7.31 (55.86%)
Short Float %6.41%
Short Ratio2.39
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)847.91%
Min EPS beat(2)34.64%
Max EPS beat(2)1661.18%
EPS beat(4)4
Avg EPS beat(4)451.33%
Min EPS beat(4)9.5%
Max EPS beat(4)1661.18%
EPS beat(8)7
Avg EPS beat(8)253.71%
EPS beat(12)7
Avg EPS beat(12)140.63%
EPS beat(16)7
Avg EPS beat(16)100.11%
Revenue beat(2)2
Avg Revenue beat(2)2.29%
Min Revenue beat(2)1.47%
Max Revenue beat(2)3.11%
Revenue beat(4)4
Avg Revenue beat(4)3.51%
Min Revenue beat(4)1.47%
Max Revenue beat(4)4.97%
Revenue beat(8)8
Avg Revenue beat(8)3.61%
Revenue beat(12)10
Avg Revenue beat(12)3.62%
Revenue beat(16)11
Avg Revenue beat(16)1.72%
PT rev (1m)-3.37%
PT rev (3m)-3.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)47.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 46.92
P/S 1.33
P/FCF N/A
P/OCF N/A
P/B 2.87
P/tB 2.91
EV/EBITDA 1228.02
EPS(TTM)-0.02
EYN/A
EPS(NY)0.1
Fwd EY2.13%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS3.53
BVpS1.64
TBVpS1.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.55%
ROE -0.81%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.64%
FCFM N/A
ROA(3y)-14.1%
ROA(5y)-11.89%
ROE(3y)-22.95%
ROE(5y)-19.23%
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 3Y3.71%
GM growth 5Y3.49%
F-Score4
Asset Turnover1.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 18.15%
Cap/Sales 0.13%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.17
Quick Ratio 1.95
Altman-Z 3.02
F-Score4
WACC9.02%
ROIC/WACCN/A
Cap/Depr(3y)48.33%
Cap/Depr(5y)30.88%
Cap/Sales(3y)0.4%
Cap/Sales(5y)0.27%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)91.3%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%400%
EPS Next Y230.34%
EPS Next 2Y91.47%
EPS Next 3Y67.74%
EPS Next 5Y66.09%
Revenue 1Y (TTM)12.15%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%12.8%
Revenue Next Year5.89%
Revenue Next 2Y5.39%
Revenue Next 3Y5.27%
Revenue Next 5Y5.89%
EBIT growth 1Y87.88%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year528.39%
EBIT Next 3Y75.41%
EBIT Next 5Y90.1%
FCF growth 1Y96.6%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y97.31%
OCF growth 3YN/A
OCF growth 5YN/A