Overview Dividends

(HNST) Honest - Ratings and Ratios

Exchange: NASDAQ • Country: United States • Currency: USD • Type: Common Stock • ISIN: US4383331067

Diapers, Skincare, Vitamins

HNST EPS (Earnings per Share)

EPS Growth (3Y CAGR): 34.65%
EPS Trend (3Y Correlation): 86.9%

HNST Revenue

Revenue Growth (3Y CAGR): 3.70%
Revenue Trend (3Y Correlation): 87.2%

Description: HNST Honest

The Honest Company, Inc. operates in the personal care products industry, offering a diverse range of eco-friendly and sustainable products, including baby care, skin care, and household essentials. Their product portfolio encompasses diapers, wipes, skincare products, makeup, and supplements, catering to the growing demand for natural and organic products. With a strong online presence and distribution through various retail channels, including their website and brick-and-mortar stores, the company has established itself as a prominent player in the market.

Analyzing the companys , we observe a market capitalization of $500.48M USD and a forward P/E ratio of 22.42, indicating a relatively high valuation compared to its current earnings. The negative Return on Equity (RoE) of -0.95 suggests that the company is currently not generating profits, which may be attributed to its growth stage and investments in expanding its product lines and distribution channels.

From a technical analysis perspective, examining the reveals that the stock is currently trading at $4.88, slightly above its 20-day and 50-day Simple Moving Averages (SMA) of $4.84 and $4.86, respectively. However, it remains below its 200-day SMA of $5.27, indicating a potential long-term downtrend. The Average True Range (ATR) of 0.21, equivalent to 4.33%, suggests moderate volatility. Given the current price action and technical indicators, a potential forecast could be that the stock may continue to consolidate around its current levels before breaking out or breaking down.

Based on the combination of and , a possible forecast is that Honest Company Inc. may experience a short-term correction due to its high valuation and current lack of profitability. However, if the company can successfully execute its growth strategy and expand its market share in the personal care products industry, it may potentially lead to a long-term upward trend. Investors should closely monitor the companys progress and adjust their investment decisions accordingly.

HNST Stock Overview

Market Cap in USD	433m
Sub-Industry	Personal Care Products
IPO / Inception	2021-05-04

HNST Stock Ratings

Growth Rating	-36.3%
Fundamental	57.8%
Dividend Rating	-
Return 12m vs S&P 500	-22.2%
Analyst Rating	4.29 of 5

HNST Dividends

Currently no dividends paid

HNST Growth Ratios

Growth Correlation 3m	-76.8%
Growth Correlation 12m	0.8%
Growth Correlation 5y	-24.3%
CAGR 5y	-27.68%
CAGR/Max DD 5y	-0.29
Sharpe Ratio 12m	-0.90
Alpha	-26.76
Beta	1.266
Volatility	76.77%
Current Volume	1819.4k
Average Volume 20d	3530.5k
Stop Loss	3.7 (-6.6%)
Signal	-1.33

Piotroski VR‑10 (Strict, 0-10) 3.0

Net Income (6.48m TTM) > 0 and > 6% of Revenue (6% = 23.4m TTM)

FCFTA 0.00 (>2.0%) and ΔFCFTA -8.65pp (YES ≥ +1.0pp, WARN ≥ +0.5pp)

NWC/Revenue 43.01% (prev 30.72%; Δ 12.29pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp)

CFO/TA -0.02 (>3.0%) and CFO -5.42m <= Net Income 6.48m (YES >=105%, WARN >=100%)

Net Debt (-54.6m) to EBITDA (17.3m) ratio: -3.15 <= 3.0 (WARN <= 3.5)

Current Ratio 4.15 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active)

Outstanding Shares last Quarter (114.0m) change vs 12m ago 15.10% (target <= -2.0% for YES)

Gross Margin 39.15% (prev 35.11%; Δ 4.03pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0)

Asset Turnover 173.6% (prev 177.7%; Δ -4.16pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0)

Interest Coverage Ratio 5.44 (EBITDA TTM 17.3m / Interest Expense TTM 2.18m) >= 6 (WARN >= 3)

Altman Z'' -9.58

(A) 0.67 = (Total Current Assets 220.9m - Total Current Liabilities 53.3m) / Total Assets 249.0m

(B) -1.92 = Retained Earnings (Balance) -478.1m / Total Assets 249.0m

warn (B) unusual magnitude: -1.92 — check mapping/units

(D) -7.71 = Book Value of Equity -478.1m / Total Liabilities 62.0m

Total Rating: -9.58 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D)

ValueRay F-Score (Strict, 0-100) 57.81

1. Piotroski 3.0pt = -2.0

2. FCF Yield 0.27% = 0.13

3. FCF Margin 0.26% = 0.06

4. Debt/Equity 0.09 = 2.50

5. Debt/Ebitda 1.01 = 1.75

6. ROIC - WACC -3.56% = -4.45

7. RoE 3.84% = 0.32

8. Rev. Trend 87.19% = 4.36

9. Rev. CAGR 3.70% = 0.46

10. EPS Trend 86.92% = 2.17

11. EPS CAGR 34.65% = 2.50

What is the price of HNST shares?

As of August 31, 2025, the stock is trading at USD 3.96 with a total of 1,819,368 shares traded.
Over the past week, the price has changed by -3.41%, over one month by -16.10%, over three months by -20.48% and over the past year by -8.97%.

Is Honest a good stock to buy?

Neither. Based on ValueRay´s Fundamental Analyses, Honest is currently (August 2025) neither a good nor a bad stock to buy. It has a ValueRay Fundamental Rating of 57.81 and therefor a neutral outlook according to the companies health.
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of HNST is around 3.33 USD . This means that HNST is currently overvalued and has a potential downside of -15.91%.

Is HNST a buy, sell or hold?

Honest has received a consensus analysts rating of 4.29. Therefore, it is recommended to buy HNST.

Strong Buy: 4
Buy: 1
Hold: 2
Sell: 0
Strong Sell: 0

What are the forecasts/targets for the HNST price?

Issuer	Target	Up/Down from current
Wallstreet Target Price	6.8	71.5%
Analysts Target Price	7.2	81.1%
ValueRay Target Price	3.8	-4.5%

Last update: 2025-08-20 02:50

HNST Fundamental Data Overview

Market Cap USD = 432.8m (432.8m USD * 1.0 USD.USD)
CCE Cash And Equivalents = 72.1m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 64.8333
P/E Forward = 21.5983
P/S = 1.1105
P/B = 2.3143
Beta = 2.336
Revenue TTM = 389.8m USD
EBIT TTM = 11.8m USD
EBITDA TTM = 17.3m USD
Long Term Debt = 8.74m USD (from nonCurrentLiabilitiesTotal, last quarter)
Short Term Debt = 8.77m USD (from shortTermDebt, last quarter)
Debt = 17.5m USD (Calculated: Short Term 8.77m + Long Term 8.74m)
Net Debt = -54.6m USD (from netDebt column, last quarter)
Enterprise Value = 378.3m USD (432.8m + Debt 17.5m - CCE 72.1m)
Interest Coverage Ratio = 5.44 (Ebit TTM 11.8m / Interest Expense TTM 2.18m)
FCF Yield = 0.27% (FCF TTM 1.01m / Enterprise Value 378.3m)
FCF Margin = 0.26% (FCF TTM 1.01m / Revenue TTM 389.8m)
Net Margin = 1.66% (Net Income TTM 6.48m / Revenue TTM 389.8m)
Gross Margin = 39.15% ((Revenue TTM 389.8m - Cost of Revenue TTM 237.2m) / Revenue TTM)
Tobins Q-Ratio = -0.79 (set to none) (Enterprise Value 378.3m / Book Value Of Equity -478.1m)
Interest Expense / Debt = 5.86% (Interest Expense 1.03m / Debt 17.5m)
Taxrate = 1.12% (from quarterly Income Tax Expense: 44.0k / 3.91m)
NOPAT = 11.7m (EBIT 11.8m * (1 - 1.12%))
Current Ratio = 4.15 (Total Current Assets 220.9m / Total Current Liabilities 53.3m)
Debt / Equity = 0.09 (Debt 17.5m / last Quarter total Stockholder Equity 187.0m)
Debt / EBITDA = 1.01 (Net Debt -54.6m / EBITDA 17.3m)
Debt / FCF = 17.32 (Debt 17.5m / FCF TTM 1.01m)
Total Stockholder Equity = 168.9m (last 4 quarters mean)
RoA = 2.60% (Net Income 6.48m, Total Assets 249.0m )
RoE = 3.84% (Net Income TTM 6.48m / Total Stockholder Equity 168.9m)
RoCE = 6.66% (Ebit 11.8m / (Equity 168.9m + L.T.Debt 8.74m))
RoIC = 6.93% (NOPAT 11.7m / Invested Capital 168.9m)
WACC = 10.49% (E(432.8m)/V(450.3m) * Re(10.68%)) + (D(17.5m)/V(450.3m) * Rd(5.86%) * (1-Tc(0.01)))
Shares Correlation 5-Years: 100.0 | Cagr: 5.78%
Discount Rate = 10.68% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 59.58% ; FCFE base≈7.86m ; Y1≈5.16m ; Y5≈2.36m
Fair Price DCF = 0.29 (DCF Value 32.0m / Shares Outstanding 111.3m; 5y FCF grow -40.0% → 3.0% )
Revenue Correlation: 87.19 | Revenue CAGR: 3.70%
Rev Growth-of-Growth: 1.24
EPS Correlation: 86.92 | EPS CAGR: 34.65%
EPS Growth-of-Growth: 4.32

Additional Sources for HNST Stock

News: Wall Street Journal | Benzinga | Yahoo Finance
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Fund Manager Positions: Dataroma | Stockcircle