HNST Stock Analysis: Honest | NASDAQ
Household & Personal Products | NASDAQ, USA | Market Cap: 424m USD | 12M Return: 19.9% | US4383331067 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 4.49M
Qual. Beats: 0
Rev. Trend: 34.1%
Qual. Beats: 1
Warnings
Tailwinds
Seasonality 5.2 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
The Honest Company, Inc. (NASDAQ: HNST) is a U.S.-based personal care company that manufactures and sells hygiene, beauty, and baby care products, including wipes, diapers, and personal care items aimed at both babies and adults. The company distributes its products through a multi-channel approach, reaching customers via physical retailers, its own websites, and third-party e-commerce platforms.
Headquartered in Los Angeles, California, and incorporated in 2011, Honest Company went public on May 4, 2021. It is classified within the Consumer Staples sector under the Personal Care Products sub-industry, a category that typically includes hygiene, skincare, and baby care brands focused on everyday household and personal-use demand.
- Diapers and wipes category drives core revenue growth
- Beauty and skincare segment expansion lifts higher-margin mix
- Rising competition from Coterie and private label pressures market share
| Net Income: -12.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.26 > 0.02 and ΔFCF/TA 28.08 > 1.0 |
| NWC/Revenue: 43.79% < 20% (prev 43.01%; Δ 0.78% < -1%) |
| CFO/TA 0.28 > 3% & CFO 62.1m > Net Income -12.2m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 3.94 > 1.5 & < 3 |
| Outstanding Shares: last quarter (113.1m) vs 12m ago -0.82% < -2% |
| Gross Margin: 35.66% > 18% (prev 39.15%; Δ -3.49% > 0.5%) |
| Asset Turnover: 145.8% > 50% (prev 156.5%; Δ -10.72% > 0%) |
| Interest Coverage Ratio: -3.78 > 6 (EBIT TTM -11.3m / Interest Expense TTM 2.98m) |
| A: 0.68 (Total Current Assets 200.7m - Total Current Liabilities 50.9m) / Total Assets 220.1m |
| B: -2.23 (Retained Earnings -490.2m / Total Assets 220.1m) |
| C: -0.05 (EBIT TTM -11.3m / Avg Total Assets 234.6m) |
| D: 3.15 (Book Value of Equity 167.0m / Total Liabilities 53.1m) |
| Altman-Z'' = 0.18 = B |
| DSRI: 0.96 (Receivables 38.1m/45.1m, Revenue 342.0m/389.8m) |
| GMI: 1.10 (GM 39.15% / 35.66%) |
| AQI: 0.86 (AQ_t 0.01 / AQ_t-1 0.02) |
| SGI: 0.88 (Revenue 342.0m / 389.8m) |
| TATA: -0.34 (NI -12.2m - CFO 62.1m) / TA 220.1m) |
| Beneish M = -3.18 (Cap -4..+1) = AA |
As of August 07, 2026, the stock is trading at USD 5.42 with a total of 19,947,740 shares traded. Over the past week, the price has changed by +45.70%, over one month by +37.56%, over three months by +59.88% and over the past year by +19.91%.
Current recommended Stop Loss: 5.20 (which is 4.1% or 1.5 ATR below the current price).
Honest has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy HNST.
- StrongBuy: 4
- Buy: 1
- Hold: 2
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 4.1 | -24.9% |
P/E Forward = 48.5437
P/S = 1.2034
P/B = 2.3729
Revenue TTM = 342.0m USD
EBIT TTM = -11.3m USD
EBITDA TTM = -179k USD
Long Term Debt = unknown (none)
Short Term Debt = 9.04m USD (from shortTermDebt, last fiscal year)
Debt = 14.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 11.8m
Net Debt = -91.9m USD (calculated: Debt 14.0m - CCE 105.9m)
Enterprise Value = 331.9m USD (423.8m + Debt 14.0m - CCE 105.9m)
Interest Coverage Ratio = -3.78 (Ebit TTM -11.3m / Interest Expense TTM 2.98m)
EV/FCF = 5.87x (Enterprise Value 331.9m / FCF TTM 56.5m)
FCF Yield = 17.02% (FCF TTM 56.5m / Enterprise Value 331.9m)
FCF Margin = 16.52% (FCF TTM 56.5m / Revenue TTM 342.0m)
Net Margin = -3.56% (Net Income TTM -12.2m / Revenue TTM 342.0m)
Gross Margin = 35.66% ((Revenue TTM 342.0m - Cost of Revenue TTM 220.0m) / Revenue TTM)
Gross Margin QoQ = 48.45% (prev 42.60%)
Tobins Q-Ratio = 1.51 (Enterprise Value 331.9m / Total Assets 220.1m)
Interest Expense / Debt = 21.33% (Interest Expense 2.98m / Debt 14.0m)
Taxrate = 0.60% (65.0k / 10.8m)
NOPAT = -11.2m (EBIT -11.3m * (1 - 0.60%)) [loss with tax shield]
Current Ratio = 3.94 (Total Current Assets 200.7m / Total Current Liabilities 50.9m)
Debt / Equity = 0.08 (Debt 14.0m / totalStockholderEquity, last quarter 167.0m)
Debt / EBITDA = 513.6 (negative EBITDA) (Net Debt -91.9m / EBITDA -179k)
Debt / FCF = -1.63 (Net Debt -91.9m / FCF TTM 56.5m)
Total Stockholder Equity = 174.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -5.19% (Net Income -12.2m / Total Assets 220.1m)
RoE = -6.99% (Net Income TTM -12.2m / Total Stockholder Equity 174.0m)
RoCE = -6.66% (EBIT -11.3m / Capital Employed (Total Assets 220.1m - Current Liab 50.9m))
RoIC = -6.95% (negative operating profit) (NOPAT -11.2m / Invested Capital 161.2m)
WACC = 10.55% (E(423.8m)/V(437.8m) * Re(10.20%) + D(14.0m)/V(437.8m) * Rd(21.33%) * (1-Tc(0.01)))
Discount Rate = 10.20% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 84.36 | Cagr: 7.42%
[DCF] Terminal Value 68.13% ; FCFF base≈56.5m ; Y1≈56.7m ; Y5≈60.1m
[DCF] Fair Price = 7.01 (EV 680.1m - Net Debt -91.9m = Equity 772.0m / Shares 110.1m; r=10.55% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.55 | # QB: 0
Revenue Correlation: 34.07 | Revenue CAGR: 2.03% | SUE: 1.29 | # QB: 1
EPS current Quarter (2026-09-30): EPS=0.03 | Chg30d=N/A | Revisions=-25% | Analysts=6
EPS current Year (2026-12-31): EPS=0.09 | Chg30d=-1.82% | Revisions=-25% | GrowthEPS=-5.1% | GrowthRev=-16.5%
EPS next Year (2027-12-31): EPS=0.12 | Chg30d=-7.15% | Revisions=-25% | GrowthEPS=+27.3% | GrowthRev=+5.4%
[Analyst] Revisions Ratio: -50% (up=0, down=3)