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HONEST CO INC/THE (HNST) Stock Fundamental Analysis

USA - NASDAQ:HNST - US4383331067 - Common Stock

4.01 USD
-0.08 (-1.96%)
Last: 9/16/2025, 8:00:01 PM
3.9929 USD
-0.02 (-0.43%)
After Hours: 9/16/2025, 8:00:01 PM
Fundamental Rating

5

HNST gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 36 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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3

1. Profitability

1.1 Basic Checks

HNST had positive earnings in the past year.
In the past year HNST has reported a negative cash flow from operations.
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

Looking at the Return On Assets, with a value of 2.60%, HNST is in line with its industry, outperforming 58.33% of the companies in the same industry.
The Return On Equity of HNST (3.46%) is better than 63.89% of its industry peers.
HNST's Return On Invested Capital of 1.78% is in line compared to the rest of the industry. HNST outperforms 47.22% of its industry peers.
Industry RankSector Rank
ROA 2.6%
ROE 3.46%
ROIC 1.78%
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

Looking at the Profit Margin, with a value of 1.66%, HNST is in line with its industry, outperforming 55.56% of the companies in the same industry.
With a Operating Margin value of 1.13%, HNST perfoms like the industry average, outperforming 47.22% of the companies in the same industry.
With a Gross Margin value of 39.15%, HNST is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
HNST's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.13%
PM (TTM) 1.66%
GM 39.15%
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

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HNST is destroying value.
Compared to 1 year ago, HNST has more shares outstanding
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 4.06. This indicates that HNST is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of HNST (4.06) is better than 66.67% 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 N/A
Altman-Z 4.06
ROIC/WACC0.21
WACC8.69%
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 4.15 indicates that HNST has no problem at all paying its short term obligations.
HNST has a better Current ratio (4.15) than 86.11% of its industry peers.
A Quick Ratio of 2.36 indicates that HNST has no problem at all paying its short term obligations.
HNST has a Quick ratio of 2.36. This is in the better half of the industry: HNST outperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 4.15
Quick Ratio 2.36
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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 138.46% over the past year.
The Revenue has grown by 9.58% in the past year. This is quite good.
The Revenue has been growing by 9.94% on average over the past years. This is quite good.
EPS 1Y (TTM)138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%0.44%

3.2 Future

HNST is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 66.09% yearly.
HNST is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.89% yearly.
EPS Next Y264.34%
EPS Next 2Y93.82%
EPS Next 3Y67.74%
EPS Next 5Y66.09%
Revenue Next Year5.5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.25%
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

With a Price/Earnings ratio of 80.20, HNST can be considered very expensive at the moment.
HNST's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.20. HNST is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 38.05 indicates a quite expensive valuation of HNST.
HNST's Price/Forward Earnings ratio is in line with the industry average.
HNST is valuated expensively when we compare the Price/Forward Earnings ratio to 22.71, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 80.2
Fwd PE 38.05
HNST Price Earnings VS Forward Price EarningsHNST Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

HNST's Enterprise Value to EBITDA ratio is in line with the industry average.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 51.26
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 67.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.3
PEG (5Y)N/A
EPS Next 2Y93.82%
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 (9/16/2025, 8:00:01 PM)

After market: 3.9929 -0.02 (-0.43%)

4.01

-0.08 (-1.96%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupHousehold & Personal Products
GICS IndustryPersonal Care Products
Earnings (Last)08-06 2025-08-06/amc
Earnings (Next)11-10 2025-11-10/amc
Inst Owners62.18%
Inst Owner Change-5.61%
Ins Owners14.09%
Ins Owner Change0.77%
Market Cap446.19M
Analysts78.46
Price Target6.93 (72.82%)
Short Float %13.61%
Short Ratio3.54
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)1148.24%
Min EPS beat(2)635.29%
Max EPS beat(2)1661.18%
EPS beat(4)4
Avg EPS beat(4)607.78%
Min EPS beat(4)34.64%
Max EPS beat(4)1661.18%
EPS beat(8)8
Avg EPS beat(8)333.61%
EPS beat(12)8
Avg EPS beat(12)196.27%
EPS beat(16)8
Avg EPS beat(16)140.9%
Revenue beat(2)1
Avg Revenue beat(2)1.24%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)3.11%
Revenue beat(4)3
Avg Revenue beat(4)2.23%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)4.97%
Revenue beat(8)7
Avg Revenue beat(8)3.03%
Revenue beat(12)9
Avg Revenue beat(12)3.49%
Revenue beat(16)11
Avg Revenue beat(16)2.14%
PT rev (1m)-5.23%
PT rev (3m)-5.23%
EPS NQ rev (1m)-183.3%
EPS NQ rev (3m)-143.09%
EPS NY rev (1m)26.09%
EPS NY rev (3m)26.09%
Revenue NQ rev (1m)-1.26%
Revenue NQ rev (3m)-3.65%
Revenue NY rev (1m)-0.37%
Revenue NY rev (3m)-0.37%
Valuation
Industry RankSector Rank
PE 80.2
Fwd PE 38.05
P/S 1.14
P/FCF N/A
P/OCF N/A
P/B 2.39
P/tB 2.42
EV/EBITDA 51.26
EPS(TTM)0.05
EY1.25%
EPS(NY)0.11
Fwd EY2.63%
FCF(TTM)-0.05
FCFYN/A
OCF(TTM)-0.05
OCFYN/A
SpS3.5
BVpS1.68
TBVpS1.66
PEG (NY)0.3
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.6%
ROE 3.46%
ROCE 2.26%
ROIC 1.78%
ROICexc 2.82%
ROICexgc 2.88%
OM 1.13%
PM (TTM) 1.66%
GM 39.15%
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-Score5
Asset Turnover1.57
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA 0
Cap/Depr 20.24%
Cap/Sales 0.15%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 4.15
Quick Ratio 2.36
Altman-Z 4.06
F-Score5
WACC8.69%
ROIC/WACC0.21
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)138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
EPS Next Y264.34%
EPS Next 2Y93.82%
EPS Next 3Y67.74%
EPS Next 5Y66.09%
Revenue 1Y (TTM)9.58%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%0.44%
Revenue Next Year5.5%
Revenue Next 2Y5.16%
Revenue Next 3Y5.25%
Revenue Next 5Y5.89%
EBIT growth 1Y137.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year528.46%
EBIT Next 3Y75.41%
EBIT Next 5Y90.1%
FCF growth 1Y87.79%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y88.49%
OCF growth 3YN/A
OCF growth 5YN/A