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HONEST CO INC/THE (HNST) Stock Fundamental Analysis

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

4.99  +0.16 (+3.31%)

After market: 4.9329 -0.06 (-1.14%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HNST. HNST was compared to 35 industry peers in the Personal Care Products industry. HNST has a great financial health rating, but its profitability evaluates not so good. While showing a medium growth rate, HNST is valued expensive at the moment.


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.
HNST had a positive operating cash flow in the past year.
HNST had negative earnings in each of the past 5 years.
In multiple years HNST reported negative operating cash flow during the last 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 2024 0 -20M -40M -60M

1.2 Ratios

HNST has a worse Return On Assets (-2.48%) than 60.00% of its industry peers.
The Return On Equity of HNST (-3.51%) is comparable to the rest of the industry.
Industry RankSector Rank
ROA -2.48%
ROE -3.51%
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

HNST's Gross Margin of 38.23% is on the low side compared to the rest of the industry. HNST is outperformed by 74.29% of its industry peers.
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 38.23%
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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8

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.
The number of shares outstanding for HNST has been increased compared to 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 3.96. This indicates that HNST is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.96, HNST perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
HNST has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 3.96
ROIC/WACCN/A
WACC8.97%
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 3.57 indicates that HNST has no problem at all paying its short term obligations.
HNST has a better Current ratio (3.57) than 85.71% of its industry peers.
A Quick Ratio of 2.15 indicates that HNST has no problem at all paying its short term obligations.
HNST has a Quick ratio of 2.15. This is in the better half of the industry: HNST outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.57
Quick Ratio 2.15
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 85.71% over the past year.
The Revenue has grown by 9.87% in the past year. This is quite good.
HNST shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.94% yearly.
EPS 1Y (TTM)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
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 Y187.84%
EPS Next 2Y84.23%
EPS Next 3Y69.73%
EPS Next 5Y66.09%
Revenue Next Year6.08%
Revenue Next 2Y5.46%
Revenue Next 3Y5.37%
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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3

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 94.68, which means the current valuation is very expensive for HNST.
HNST's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, HNST is valued quite expensively.
Industry RankSector Rank
PE N/A
Fwd PE 94.68
HNST Price Earnings VS Forward Price EarningsHNST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 50 -50

4.2 Price Multiples

HNST's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 544.06
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.
HNST's earnings are expected to grow with 69.73% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y84.23%
EPS Next 3Y69.73%

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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 (5/2/2025, 8:00:01 PM)

After market: 4.9329 -0.06 (-1.14%)

4.99

+0.16 (+3.31%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)02-26 2025-02-26/amc
Earnings (Next)05-07 2025-05-07/amc
Inst Owners68.22%
Inst Owner Change1.54%
Ins Owners15.25%
Ins Owner Change2.02%
Market Cap550.05M
Analysts78.46
Price Target7.57 (51.7%)
Short Float %5.22%
Short Ratio1.82
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)67.32%
Min EPS beat(2)34.64%
Max EPS beat(2)100%
EPS beat(4)4
Avg EPS beat(4)57.61%
Min EPS beat(4)9.5%
Max EPS beat(4)100%
EPS beat(8)6
Avg EPS beat(8)39.21%
EPS beat(12)6
Avg EPS beat(12)1.81%
EPS beat(16)6
Avg EPS beat(16)-11.69%
Revenue beat(2)2
Avg Revenue beat(2)3.22%
Min Revenue beat(2)1.47%
Max Revenue beat(2)4.97%
Revenue beat(4)4
Avg Revenue beat(4)3.11%
Min Revenue beat(4)1.47%
Max Revenue beat(4)4.97%
Revenue beat(8)8
Avg Revenue beat(8)5.01%
Revenue beat(12)9
Avg Revenue beat(12)3.19%
Revenue beat(16)11
Avg Revenue beat(16)1.54%
PT rev (1m)0%
PT rev (3m)1.8%
EPS NQ rev (1m)-49.85%
EPS NQ rev (3m)183.5%
EPS NY rev (1m)-13.88%
EPS NY rev (3m)10.71%
Revenue NQ rev (1m)0.18%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.29%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 94.68
P/S 1.45
P/FCF 544.06
P/OCF 356.94
P/B 3.16
P/tB 3.2
EV/EBITDA N/A
EPS(TTM)-0.06
EYN/A
EPS(NY)0.05
Fwd EY1.06%
FCF(TTM)0.01
FCFY0.18%
OCF(TTM)0.01
OCFY0.28%
SpS3.43
BVpS1.58
TBVpS1.56
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -2.48%
ROE -3.51%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.23%
FCFM 0.27%
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-Score6
Asset Turnover1.53
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA N/A
Cap/Depr 18.64%
Cap/Sales 0.14%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.57
Quick Ratio 2.15
Altman-Z 3.96
F-Score6
WACC8.97%
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)85.71%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-200%
EPS Next Y187.84%
EPS Next 2Y84.23%
EPS Next 3Y69.73%
EPS Next 5Y66.09%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%10.61%
Revenue Next Year6.08%
Revenue Next 2Y5.46%
Revenue Next 3Y5.37%
Revenue Next 5Y5.89%
EBIT growth 1Y82.75%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year518.97%
EBIT Next 3Y78.05%
EBIT Next 5Y90.1%
FCF growth 1Y-94.22%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-92.04%
OCF growth 3YN/A
OCF growth 5YN/A