Share Price | The Honest Co., Inc. Stock Analysis & Recommendation

Q: Is The Honest Co., Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for The Honest Co., Inc. has moved from attractive to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its high P/E ratio of 48, a Price to Book Value of 3.15, and an EV to EBITDA ratio of 32.05, which significantly exceeds the industry benchmarks. In comparison, Envela Corp., which is considered very attractive, has a P/E of 23.22, while PetMed Express, Inc. shows a higher P/E of 58.87 but is classified as attractive.Additionally, The Honest Co., Inc. has underperformed against the S&P 500, with a year-to-date return of -47.47% compared to the index's 13.30%. This stark contrast in returns further reinforces the notion that the stock may be overvalued at its current price of 3.64.

Q: Is The Honest Co., Inc. technically bullish or bearish?

As of 8 September 2025, the technical trend has changed from mildly bearish to bearish. The current technical stance is bearish, with the weekly MACD and KST both indicating bearish momentum. The daily moving averages also confirm a bearish outlook. While the weekly Dow Theory shows a mildly bullish signal and the OBV is mildly bullish, these are overshadowed by the overall bearish indicators. The stock has underperformed significantly year-to-date, with a return of -41.56% compared to the S&P 500's 12.22%.

Q: What does The Honest Co., Inc. do?

Overview: The Honest Co., Inc. operates in the retailing industry and is classified as a micro-cap company.Financial Snapshot: Most recent Net Sales: 97 Million (Quarterly Results - Mar 2025) Most recent Net Profit: 3 Million (Quarterly Results - Mar 2025) Market-cap: USD 485.04 Million (Micro Cap)Key Metrics: P/E: 48.00 Dividend Yield: 0.00% Debt Equity: -0.36 Return on Equity: 6.58% Price to Book: 2.69 Contact Details: Registrar Address: Not available.

Q: Should I buy, sell or hold The Honest Co., Inc.?

Based on the current analysis of The Honest Co., Inc., it would be advisable to hold your position in the stock for now. The company has demonstrated some positive trends, such as declaring positive results for the last seven consecutive quarters and achieving a significant growth in pre-tax profit. However, the low return on equity of 1.32% indicates poor management efficiency and profitability relative to shareholders' funds. Additionally, the stock is considered risky compared to its historical valuations, with a return of 0% over the past year despite a substantial increase in profits.Moreover, the high institutional holdings at 84.02% suggest that knowledgeable investors are backing the company, which could provide some reassurance. Given these factors, holding may be the most prudent approach while monitoring future developments.

Price Point

High/Low

1Day

52 Week

Valuation

Technical

Day's Volume

CASH

573.1 k

Shareholding (Jun 2026)

FII

4.15%

Held by 47 FIIs

DII

86.73%

Held by 37 DIIs

Promoter

9.11%

Is The Honest Co., Inc. overvalued or undervalued?

21-Oct-2025

As of October 17, 2025, The Honest Co., Inc. is considered overvalued with a high P/E ratio of 48 and a year-to-date return of -47.47%, contrasting sharply with the S&P 500's 13.30% return.

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Is The Honest Co., Inc. technically bullish or bearish?

20-Sep-2025

As of September 8, 2025, the technical trend is bearish, with key indicators like the weekly MACD and daily moving averages confirming this outlook, despite some mildly bullish signals from Dow Theory and OBV.

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How big is The Honest Co., Inc.?

22-Jun-2025

As of Jun 18, The Honest Co., Inc. has a market capitalization of 485.04 million and reported net sales of 389.38 million with a net profit of -1.47 million over the latest four quarters. The company's balance sheet shows shareholder's funds of 174.31 million and total assets of 247.39 million.

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What does The Honest Co., Inc. do?

22-Jun-2025

The Honest Co., Inc. is a micro-cap retail company with recent net sales of $97 million and a net profit of $3 million. Key metrics include a P/E ratio of 48.00 and a market cap of $485.04 million.

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Should I buy, sell or hold The Honest Co., Inc.?

22-Jun-2025

Compare The Honest Co., Inc. with Similar Stocks

Envela Corp.Vroom, Inc.Sportsman's Warehouse Holdings, Inc.

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Dashboard

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

The company has declared positive results in Jun'2026 after 2 consecutive negative quarters

Risky -

High Institutional Holdings at 71.52%

Market Beating performance in long term as well as near term

Mojo Parameters

Stock DNA

Industry

Retailing

Market cap

USD 324 Million (Micro Cap)

P/E

NA (Loss Making)

Industry P/E

Dividend Yield

0.00%

Debt Equity

-0.47

Return on Equity

-5.36%

Price to Book

1.91

Revenue and Profits:

Net Sales:

83 Million

(Quarterly Results - Jun 2026)

Net Profit:

11 Million

Total Returns

Total Returns (Price + Dividend)

TimePeriod

Price Return

Dividend Return

Total Return

3 Months

43.89%

6 Months

81.12%

1 Year

34.9%

2 Years

41.53%

3 Years

307.87%

4 Years

43.89%

5 Years

-54.76%

The Honest Co., Inc. for the last several years.

Risk Adjusted Returns v/s

News & Corporate Actions

News

No Recent News for the Company

Announcements

No announcement available

Corporate Actions

No corporate action available

Key Factors

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 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 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

Shareholding

Shareholding Snapshot : Jun 2026

Shareholding Compare (%holding)

Majority shareholders

Domestic Funds

Held in 42 Schemes (29.06%)

Foreign Institutions

Held by 47 Foreign Institutions (4.15%)

Strategic Entities with highest holding

Highest Public shareholder

Financial

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