The Honest Company, Inc. (HNST) Stock

The Honest Company, Inc. (HNST) is a Consumer Discretionary stock trading at $4.95 (as of 2026-08-20), with a market capitalization of $550.78M and a trailing P/E of 48.5. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Understand The Honest Company, Inc.: how it makes money

The Honest Company sells baby and personal care products, including diapers and wipes, across both digital and retail channels, and it makes money by generating recurring consumer purchases reflected in metrics like households and repeat rate.

The profit model centers on keeping shoppers buying again (Honest Repeat Rate) while expanding reach through household growth (New Households) and distribution across Digital and Retail channels, which together drive Organic Revenue.

Revenue by segment (latest quarter)
Digital$0.1B
Retail$0.0B

Business quality (Weak): The company shows a defined product and channel mix (diapers and wipes plus digital and retail distribution) and measurable operating KPIs (repeat rate, household penetration, and penetration across retail doors). However, the latest quarter still shows negative operating margin, so investors should focus on whether repeat and household metrics translate into sustainable profitability.

Bull case

  • Repeat purchasing is measurable and non-trivial, with Honest Repeat Rate at 32%: A stable repeat rate supports ongoing demand and helps monetize customer relationships over time.
  • The company has broad retail distribution, with Retail Doors Represented at 50,000 and Walmart Stores Carrying Honest Products at 2,500: Wider distribution can make it easier for households to find and repurchase products.

Bear case

  • The latest quarter shows an operating loss, with operating margin at -0.8%: Even with positive gross margin (42.6%), operating expenses are currently high enough to prevent profitability.
  • Diaper consumption is declining, with Diaper Consumption Decline at 9.6%: Volume softness in the core category can pressure revenue and makes it harder to leverage fixed costs.
  • Average Clearing Volume Percent is 49%: Higher clearing activity can signal promotional intensity or inventory pressures, which can weigh on the business model.
Valuation — source: SEC EDGAR (first-party)
Price$4.95
Market Cap$550.78M
P/E Ratio48.5
EV / EBITDA33.2
Price / Book3.30
Price / Sales1.66
FCF Yield7.0%
DCF Value (model)$1.65
DCF Upside vs Price-66.7%
Profitability & Growth — source: SEC EDGAR
Revenue (TTM)$371.32M
Net Margin-4.2%
Revenue Growth (YoY)-1.9%
EPS Growth (YoY)133.3%
FCF Growth (YoY)1246.3%
Financial Health — source: SEC EDGAR
Altman Z-Score5.07 (safe)
Valuation vs Sector & Industry
Stock P/E48.5
Sector P/E (Consumer Discretionary)20.5
Industry P/E (Retail)19.5
vs Sector136.7%
vs Industry148.3%
Company
SectorConsumer Discretionary
IndustryRetail

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HNST earnings history · HNST institutional & insider holders · HNST KPIs & operating metrics · HNST financials · HNST investor presentations & press releases · HNST SEC filings · HNST peers · Congress trades · Insider trades · Short interest · Stock screener

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.