NASDAQ
HNST
Last Price
US $3.96
KEY FIGURES
MKT CAP
$435.9M
EPS
TTM
$-0.17
PEG
TTM
N/M
P/E
TTM
N/M
P/S
TTM
1.27x
YIELD
0.00%
GROWTH
Revenue Y/Y
4.32%
(FY vs FY)
EBITDA Y/Y
Cash Flow (DCF)
Fair Value
Market $3.96
—
Default assumptions
EBITDA Multiple
Fair Value
Market $3.96
-85.61%
Default assumptions
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
The Honest Company, Inc. cash flow to debt ratio of 108.31% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
The Honest Company, Inc.'s free cash flow has increased 1.25K% from $1.01M last year to $13.61M, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
The Honest Company, Inc.'s debt to equity ratio is 0.07, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
The Honest Company, Inc.'s debt has decreased relative to shareholder equity from 0.12 last year to 0.07 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
The Honest Company, Inc. has negative EBITDA, making leverage ratio unreliable
Financial risk - ICR.
The Honest Company, Inc.'s interest coverage ratio is -26.35, which means that the company struggles to meet interest obligations, signaling financial risk.
Financial risk - Profit margin growth.
The Honest Company, Inc.'s profit margin has decreased (233.02%) in the last year from -1.62% to -5.39%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
The Honest Company, Inc.'s short-term assets of $202.43M exceed its short-term liabilities of $50.82M
Decreasing performance - ROA.
The Honest Company, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
The Honest Company, Inc.'s return on equity of -10.61%, is lower than 15.00%, indicating bad performance
Decreasing performance - Earnings quality.
The Honest Company, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Decreasing performance - Earnings stability.
The Honest Company, Inc. had positive net income in only 0.00 out of 5 years, indicating unstable earnings
Increasing performance - Free cash flow.
The Honest Company, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
The Honest Company, Inc. has a free cash flow yield of 3.12%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
The Honest Company, Inc.'s yearly earnings has decreased 156.14% since last year from $-6.12M to $-15.69M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
The Honest Company, Inc.'s yearly revenue has decreased -1.86% since last year from $378.34M to $371.32M, signaling decreasing performance
Decreasing performance - ROIC.
ROIC -9.66% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
The Honest Company, Inc.'s 3-year revenue CAGR of 5.79% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
The Honest Company, Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Decreasing performance - ROE consistency.
The Honest Company, Inc. had positive ROE in only 0.00 out of 5 years, indicating inconsistent returns on equity
Overvalued - DCF valuation.
The Honest Company, Inc. has insufficient data to evaluate this check.
Overvalued - Earnings yield.
The Honest Company, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Overvalued - EBITDA valuation.
The Honest Company, Inc. is overvalued relative to its fair value price of 0.57 based on EBITDA multiple model
Overvalued - EV/EBITDA.
The Honest Company, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable
Overvalued - PEG ratio value.
The Honest Company, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
The Honest Company, Inc. has a price-to-book ratio of 2.64x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
The Honest Company, Inc. has a price-to-sales ratio of 1.27x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue
Profit margin
Current Ratio
Capital Returns
-10.61%
Return on equity
ROIC: -9.66%
Valuation History
-23.8X
Price to Earnings
EV/EBITDA: -42.2X
Cash flow
Profit margin
24.08%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
EARNINGS FV (GRAHAM)
Fair Value
Market $3.96
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Default assumptions
Base valuations use default assumptions. Customize in the Valuator.