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HONEST CO INC/THE (HNST) Stock Fundamental Analysis

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

4.01  +0.01 (+0.25%)

After market: 3.9309 -0.08 (-1.97%)

Fundamental Rating

4

HNST gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 35 industry peers in the Personal Care Products industry. No worries on liquidiy or solvency for HNST as it has an excellent financial health rating, but there are worries on the profitability. While showing a medium growth rate, HNST is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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2

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

HNST has a Return On Assets (-0.55%) which is comparable to the rest of the industry.
HNST's Return On Equity of -0.81% is in line compared to the rest of the industry. HNST outperforms 54.29% 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

The Gross Margin of HNST (38.64%) is worse than 74.29% of its industry peers.
HNST's Gross Margin has improved in the last couple of years.
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 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.
HNST has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, HNST has more shares outstanding
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

An Altman-Z score of 2.73 indicates that HNST is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of HNST (2.73) is comparable to the rest of the 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 N/A
Altman-Z 2.73
ROIC/WACCN/A
WACC8.91%
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

HNST has a Current Ratio of 3.17. This indicates that HNST is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.17, HNST is doing good in the industry, outperforming 77.14% of the companies in the same industry.
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 71.43% 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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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 138.46% over the past year.
HNST shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
Measured over the past years, HNST shows a quite strong growth in Revenue. The Revenue has been growing by 9.94% on average per year.
EPS 1Y (TTM)138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%0.44%

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.
Based on estimates for the next years, HNST will show a small growth in Revenue. The Revenue will grow by 5.89% on average per year.
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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3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 80.20 indicates a quite expensive valuation of HNST.
HNST's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.73. HNST is valued rather expensively when compared to this.
The Price/Forward Earnings ratio is 40.12, which means the current valuation is very expensive for HNST.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HNST is on the same level as its industry peers.
HNST is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.61, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 80.2
Fwd PE 40.12
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 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 1105.53
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.
HNST's earnings are expected to grow with 67.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.35
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 (8/12/2025, 8:00:02 PM)

After market: 3.9309 -0.08 (-1.97%)

4.01

+0.01 (+0.25%)

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-1.03%
Ins Owners14.09%
Ins Owner Change3.51%
Market Cap442.06M
Analysts78.46
Price Target7.31 (82.29%)
Short Float %10.4%
Short Ratio3.75
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)0%
PT rev (3m)-3.37%
EPS NQ rev (1m)-40.03%
EPS NQ rev (3m)-40.03%
EPS NY rev (1m)0%
EPS NY rev (3m)48.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.7%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 80.2
Fwd PE 40.12
P/S 1.14
P/FCF N/A
P/OCF N/A
P/B 2.45
P/tB 2.48
EV/EBITDA 1105.53
EPS(TTM)0.05
EY1.25%
EPS(NY)0.1
Fwd EY2.49%
FCF(TTM)-0.02
FCFYN/A
OCF(TTM)-0.02
OCFYN/A
SpS3.53
BVpS1.64
TBVpS1.61
PEG (NY)0.35
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 2.73
F-Score4
WACC8.91%
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)138.46%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%175%
EPS Next Y230.34%
EPS Next 2Y91.47%
EPS Next 3Y67.74%
EPS Next 5Y66.09%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y5.9%
Revenue growth 5Y9.94%
Sales Q2Q%0.44%
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 Year528.46%
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