(HNST) Honest - NASDAQ
Sector: Consumer Defensive | Industry: Household & Personal Products | Exchange: NASDAQ (USA) | Market Cap: 398m USD | Total Return: -20.3% in 12m
Avg Turnover: 4.92M
Qual. Beats: 0
Rev. Trend: 70.0%
Qual. Beats: 0
Warnings
High Debt/EBITDA (9.5) with thin interest coverage (-6.1)
Interest Coverage Ratio -6.1 is critical
Altman Z'' 0.37 < 1.0 - financial distress zone
Tailwinds
No distinct edge detected
The Honest Company, Inc. (HNST) is a Los Angeles-based consumer goods firm specializing in clean-label personal care products for infants and adults. Its core portfolio includes diapers, wipes, and beauty products distributed through a multi-channel strategy encompassing major retail partnerships and direct-to-consumer e-commerce platforms.
Operating within the Personal Care Products sub-industry, the company utilizes an omnichannel business model to mitigate reliance on any single sales channel. This sector is increasingly defined by clean beauty standards, where brands differentiate themselves through ingredient transparency and the exclusion of specific synthetic chemicals.
Investors can further evaluate these market positioning factors by reviewing the detailed metrics available on ValueRay.
- Omnichannel expansion through retail partnerships drives revenue growth and market penetration
- Product innovation in baby and beauty categories dictates brand pricing power
- Supply chain optimization and manufacturing efficiencies determine gross margin expansion
- Consumer sensitivity to premium pricing impacts volume during inflationary cycles
- Digital marketing conversion rates influence customer acquisition costs and subscription revenue
| Net Income: -19.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.09 > 0.02 and ΔFCF/TA 10.34 > 1.0 |
| NWC/Revenue: 42.61% < 20% (prev 41.26%; Δ 1.35% < -1%) |
| CFO/TA 0.11 > 3% & CFO 23.6m > Net Income -19.0m |
| Net Debt/EBITDA: error (EBITDA <= 0) |
| Current Ratio: 4.51 > 1.5 & < 3 |
| Outstanding Shares: last quarter (112.8m) vs 12m ago -1.53% < -2% |
| Gross Margin: 33.89% > 18% (prev 38.64%; Δ -4.75% > 0.5%) |
| Asset Turnover: 146.7% > 50% (prev 146.8%; Δ -0.10% > 0%) |
| Interest Coverage Ratio: -6.12 > 6 (EBIT TTM -17.5m / Interest Expense TTM 2.85m) |
| A: 0.70 (Total Current Assets 192.8m - Total Current Liabilities 42.8m) / Total Assets 214.9m |
| B: -2.33 (Retained Earnings -500.9m / Total Assets 214.9m) |
| C: -0.07 (EBIT TTM -17.5m / Avg Total Assets 240.1m) |
| D: 3.69 (Book Value of Equity 169.1m / Total Liabilities 45.8m) |
| Altman-Z'' = 0.37 = B |
| DSRI: 0.88 (Receivables 34.0m/42.8m, Revenue 352.2m/389.4m) |
| GMI: 1.14 (GM 38.64% / 33.89%) |
| AQI: 1.06 (AQ_t 0.02 / AQ_t-1 0.02) |
| SGI: 0.90 (Revenue 352.2m / 389.4m) |
| TATA: -0.20 (NI -19.0m - CFO 23.6m) / TA 214.9m) |
| Beneish M = -3.05 (Cap -4..+1) = AA |
As of June 15, 2026, the stock is trading at USD 3.62 with a total of 1,309,157 shares traded.
Over the past week, the price has changed by +11.38%,
over one month by +13.48%,
over three months by +31.16% and
over the past year by -20.26%.
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 | 12.4% |
P/E Forward = 48.3092
P/S = 1.1315
P/B = 2.3566
Revenue TTM = 352.2m USD
EBIT TTM = -17.5m USD
EBITDA TTM = -7.96m USD
Long Term Debt = unknown (none)
Short Term Debt = unknown (none)
Debt = 14.8m USD (from shortLongTermDebtTotal, last quarter) + Leases 11.8m
Net Debt = -75.5m USD (calculated: Debt 14.8m - CCE 90.4m)
Enterprise Value = 323.0m USD (398.5m + Debt 14.8m - CCE 90.4m)
Interest Coverage Ratio = -6.12 (Ebit TTM -17.5m / Interest Expense TTM 2.85m)
EV/FCF = 15.83x (Enterprise Value 323.0m / FCF TTM 20.4m)
FCF Yield = 6.32% (FCF TTM 20.4m / Enterprise Value 323.0m)
FCF Margin = 5.79% (FCF TTM 20.4m / Revenue TTM 352.2m)
Net Margin = -5.39% (Net Income TTM -19.0m / Revenue TTM 352.2m)
Gross Margin = 33.89% ((Revenue TTM 352.2m - Cost of Revenue TTM 232.8m) / Revenue TTM)
Gross Margin QoQ = 42.60% (prev 15.73%)
Tobins Q-Ratio = 1.50 (Enterprise Value 323.0m / Total Assets 214.9m)
Interest Expense / Debt = 19.23% (Interest Expense 2.85m / Debt 14.8m)
Taxrate = 21.0% (US federal default 21%)
NOPAT = -13.8m (EBIT -17.5m * (1 - 21.00%)) [loss with tax shield]
Current Ratio = 4.51 (Total Current Assets 192.8m / Total Current Liabilities 42.8m)
Debt / Equity = 0.09 (Debt 14.8m / totalStockholderEquity, last quarter 169.1m)
Debt / EBITDA = 9.49 (negative EBITDA) (Net Debt -75.5m / EBITDA -7.96m)
Debt / FCF = -3.70 (Net Debt -75.5m / FCF TTM 20.4m)
Total Stockholder Equity = 179.0m (last 4 quarters mean from totalStockholderEquity)
RoA = -7.91% (Net Income -19.0m / Total Assets 214.9m)
RoE = -10.61% (Net Income TTM -19.0m / Total Stockholder Equity 179.0m)
RoCE = -10.15% (EBIT -17.5m / Capital Employed (Total Assets 214.9m - Current Liab 42.8m))
RoIC = -8.93% (negative operating profit) (NOPAT -13.8m / Invested Capital 154.6m)
WACC = 11.61% (E(398.5m)/V(413.3m) * Re(11.48%) + D(14.8m)/V(413.3m) * Rd(19.23%) * (1-Tc(0.21)))
Discount Rate = 11.48% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 55.56 | Cagr: 6.28%
[DCF] Terminal Value 64.90% ; FCFF base≈20.4m ; Y1≈20.5m ; Y5≈21.7m
[DCF] Fair Price = 2.66 (EV 217.1m - Net Debt -75.5m = Equity 292.6m / Shares 110.1m; r=11.61% [WACC]; 5y FCF grow 0.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 0.77 | # QB: 0
Revenue Correlation: 70.02 | Revenue CAGR: 4.42% | SUE: 0.43 | # QB: 0
EPS current Quarter (2026-06-30): EPS=0.01 | Chg30d=N/A | Revisions=+20% | Analysts=6
EPS next Quarter (2026-09-30): EPS=0.03 | Chg30d=N/A | Revisions=-20% | Analysts=6
EPS current Year (2026-12-31): EPS=0.09 | Chg30d=-11.79% | Revisions=+14% | GrowthEPS=-3.4% | GrowthRev=-16.4%
EPS next Year (2027-12-31): EPS=0.13 | Chg30d=-16.07% | Revisions=+25% | GrowthEPS=+34.6% | GrowthRev=+5.5%
[Analyst] Revisions Ratio: +25%