The Honest Co., Inc. () Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Envela Corp.

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The Honest Co., Inc.

OneWater Marine, Inc.

EVgo, Inc.

The Aaron's Co., Inc.

Vroom, Inc.

PetMed Express, Inc.

Big 5 Sporting Goods Corp.

Kaixin Holdings

Why is The Honest Co., Inc. ?

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

Flat results in Mar 26

NET PROFIT(Q) At USD -14.41 MM has Fallen at -533.12%
NET SALES(Q) Lowest at USD 78.1 MM

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -13.73%, its profits have fallen by -234.8%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 25.41% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.73% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Retailing)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Honest Co., Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

The Honest Co., Inc.

-13.73%

0.72

65.17%

S&P 500

25.41%

1.92

13.25%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.32%

EBIT Growth (5y)

2.39%

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)

2.32

Tax Ratio

6.61%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

64.80%

ROCE (avg)

1.94%

ROE (avg)

1.32%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

1.91

EV to EBIT

-20.55

EV to EBITDA

-106.10

EV to Capital Employed

2.73

EV to Sales

0.66

PEG Ratio

Dividend Yield

ROCE (Latest)

-13.29%

ROE (Latest)

-5.36%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

PRE-TAX PROFIT(Q)

At USD 1.37 MM has Grown at 161.89%

OPERATING CASH FLOW(Y)

Highest at USD 23.59 MM

DEBT-EQUITY RATIO (HY)

Lowest at -46.49 %

RAW MATERIAL COST(Y)

Fallen by -12.56% (YoY

CASH AND EQV(HY)

Highest at USD 179.95 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 3.07 times

-17What is not working for the Company

NET PROFIT(Q)

At USD -14.41 MM has Fallen at -533.12%

NET SALES(Q)

Lowest at USD 78.1 MM

Here's what is working for The Honest Co., Inc.

Pre-Tax Profit

At USD 1.37 MM has Grown at 161.89%

over average net sales of the previous four periods of USD -2.22 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Debt-Equity Ratio

Lowest at -46.49 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Operating Cash Flow

Highest at USD 23.59 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 179.95 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Inventory Turnover Ratio

Highest at 3.07 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -12.56% (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

Here's what is not working for The Honest Co., Inc.

Net Profit

At USD -14.41 MM has Fallen at -533.12%

over average net sales of the previous four periods of USD -2.28 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

Lowest at USD 78.1 MM and Fallen

In each period in the last five periods

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)

Net Sales

At USD 78.1 MM has Fallen at -15.87%

over average net sales of the previous four periods of USD 92.83 MM

MOJO Watch

Near term sales trend is very negative

Net Sales (USD MM)