ScoreWhy is The Honest Co., Inc. ?
1
Poor Management Efficiency with a low ROE of 1.32%
- The company has been able to generate a Return on Equity (avg) of 1.32% signifying low profitability per unit of shareholders funds
2
The company has declared Positive results for the last 7 consecutive quarters
- ROCE(HY) Highest at 4.09%
- RAW MATERIAL COST(Y) Fallen by -5.69% (YoY)
- OPERATING PROFIT(Q) Highest at USD 6.47 MM
3
With ROE of 6.58%, it has a risky valuation with a 3.15 Price to Book Value
- Over the past year, while the stock has generated a return of -69.31%, its profits have risen by 190.9% ; the PEG ratio of the company is 0.3
4
High Institutional Holdings at 85.83%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.81% over the previous quarter.
5
Below par performance in long term as well as near term
- Along with generating -69.31% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to The Honest Co., Inc. should be less than 10%
- Overall Portfolio exposure to Retailing should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is The Honest Co., Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
The Honest Co., Inc.
-64.92%
0.04
66.39%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
8.03%
EBIT Growth (5y)
30.42%
EBIT to Interest (avg)
-17.46
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
-0.36
Sales to Capital Employed (avg)
2.40
Tax Ratio
6.61%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
84.02%
ROCE (avg)
1.94%
ROE (avg)
1.32%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
48
Industry P/E
Price to Book Value
3.15
EV to EBIT
44.80
EV to EBITDA
32.05
EV to Capital Employed
4.34
EV to Sales
1.30
PEG Ratio
0.27
Dividend Yield
NA
ROCE (Latest)
9.69%
ROE (Latest)
6.58%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
Bullish
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend19What is working for the Company
ROCE(HY)
Highest at 4.09%
RAW MATERIAL COST(Y)
Fallen by -5.69% (YoY
OPERATING PROFIT(Q)
Highest at USD 6.47 MM
OPERATING PROFIT MARGIN(Q)
Highest at 6.92 %
PRE-TAX PROFIT(Q)
At USD 5.1 MM has Grown at 64.62%
NET PROFIT(Q)
At USD 5.04 MM has Grown at 69.98%
EPS(Q)
Highest at USD 0.03
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for The Honest Co., Inc.
Operating Profit
Highest at USD 6.47 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 6.92 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
At USD 5.1 MM has Grown at 64.62%
over average net sales of the previous four periods of USD 3.1 MMMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 5.04 MM has Grown at 69.98%
over average net sales of the previous four periods of USD 2.97 MMMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.03
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Raw Material Cost
Fallen by -5.69% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 2.39 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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