Latest Ratios: P/E Ratio -25.7x · EV/EBITDA N/A · ROE -9.1%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $396M | $287M | $695M | $312M | $278M | $575M | — | — |
| Enterprise Value | $312M | $202M | $641M | $309M | $306M | $562M | — | — |
| P/E Ratio → | -25.71 | — | — | — | — | — | — | — |
| P/S Ratio | 1.07 | 0.77 | 1.84 | 0.91 | 0.88 | 1.81 | — | — |
| P/B Ratio | 2.36 | 1.69 | 3.99 | 2.53 | 1.90 | 3.21 | — | — |
| P/FCF | 29.11 | 21.08 | 687.14 | 17.82 | — | — | — | — |
| P/OCF | 26.21 | 18.97 | 450.81 | 16.12 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.54 | 1.69 | 0.90 | 0.97 | 1.76 | — | — |
| EV / EBITDA | — | — | 216.85 | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | 14.86 | 634.03 | 17.65 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 33.3% | 33.3% | 38.2% | 29.2% | 29.4% | 34.3% | 35.9% | 32.2% |
| Operating Margin | -5.0% | -5.0% | -1.7% | -11.3% | -15.9% | -11.6% | -4.5% | -13.4% |
| Net Profit Margin | -4.2% | -4.2% | -1.6% | -11.4% | -15.6% | -12.1% | -4.8% | -13.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -9.1% | -9.1% | -4.1% | -29.1% | -30.1% | -21.6% | — | — |
| ROA | -6.6% | -6.6% | -2.7% | -17.7% | -19.1% | -15.1% | -6.1% | -13.3% |
| ROIC | -13.5% | -13.5% | -3.9% | -19.8% | -21.9% | -16.7% | — | — |
| ROCE | -10.2% | -10.2% | -3.8% | -24.2% | -24.8% | -17.9% | -7.1% | -16.1% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.12 | 0.24 | 0.26 | 0.21 | — | — |
| Debt / EBITDA | — | — | 7.35 | — | — | — | — | — |
| Net Debt / Equity | — | -0.50 | -0.31 | -0.02 | 0.19 | -0.07 | — | — |
| Net Debt / EBITDA | — | — | -18.17 | — | — | — | — | — |
| Debt / FCF | — | -6.22 | -53.11 | -0.17 | — | — | — | — |
| Interest Coverage | -4.20 | -4.20 | — | -144.59 | — | -21.00 | -16.18 | — |
Net cash position: cash ($90M) exceeds total debt ($5M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.98 | 3.98 | 3.57 | 2.78 | 2.97 | 4.41 | 3.21 | 4.34 |
| Quick Ratio | 2.56 | 2.56 | 2.15 | 1.49 | 1.16 | 2.85 | 1.79 | 2.98 |
| Cash Ratio | 1.76 | 1.76 | 1.26 | 0.58 | 0.24 | 1.92 | 1.18 | 2.20 |
| Asset Turnover | — | 1.65 | 1.53 | 1.71 | 1.30 | 1.17 | 1.25 | 1.01 |
| Inventory Turnover | 3.41 | 3.41 | 2.74 | 3.32 | 1.91 | 2.77 | 2.51 | 3.04 |
| Days Sales Outstanding | — | 33.19 | 41.94 | 45.67 | 49.26 | 36.41 | 27.69 | 37.58 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | 6.1% | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | 3.4% | 4.7% | 0.1% | 5.6% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 6.1% | — | — |
| Shares Outstanding | — | $111M | $100M | $95M | $92M | $71M | $90M | $90M |
Persistent Revenue Contraction
Based on current market data, the company trades at a P/S multiple of 1.07, which appears to reflect significant investor doubt regarding the firm's ability to return to sustainable growth, especially when contrasted with the premium multiples often assigned to high-growth wellness and consumer brands.
The forward P/E of 51.43 suggests that the market is pricing in a substantial recovery in earnings that has yet to materialize in the operational results. Investors should monitor whether this valuation is supported by a genuine turnaround in retail velocity or if it remains a speculative premium based on the brand's niche market position.
As reported in recent financial statements, the company's ROIC has struggled to maintain positive territory, oscillating around -0.6% in 2026Q1, which indicates that the firm is currently failing to generate returns that exceed its cost of capital, thereby eroding shareholder value over the long term.
The inability to consistently achieve positive ROIC suggests that the company's investments in brand equity and omnichannel distribution have not yet reached the necessary scale to drive efficient returns. This trend warrants further investigation into whether the current business model can ever achieve the capital efficiency seen in more mature, high-margin consumer goods peers.
According to the company's quarterly filings, the cash conversion cycle has remained elevated, reaching 143 days in 2026Q1, a figure that highlights significant friction in inventory management and suggests that capital remains tied up in slow-moving stock rather than being deployed for growth.
The high days inventory outstanding (DIO) of 134 days relative to the industry average suggests that the company may be over-ordering or facing weaker-than-expected sell-through at retail partners. This inefficiency forces the company to maintain higher liquidity levels than would otherwise be necessary, effectively acting as a drag on overall operational performance.
Based on the company's reported figures, the debt-to-equity ratio of 0.02% demonstrates a remarkably clean balance sheet, which serves as a critical defensive asset that insulates the firm from the interest rate volatility currently impacting more highly leveraged competitors in the specialty retail sector.
While the lack of debt provides significant financial flexibility, it also suggests that the company has not utilized leverage to accelerate growth, perhaps reflecting management's cautious approach to capital allocation. Investors should monitor whether this conservative stance is a strategic choice to preserve runway or a missed opportunity to invest in brand expansion during a critical lifecycle phase.
Analysts frequently misapply top-line revenue growth as a primary indicator of health for this business, failing to account for the significant impact of trade spend and promotional discounting that often masks the true underlying demand for the company's premium-priced wellness products.
A more accurate assessment would involve focusing on net revenue per customer or gross margin expansion, as these metrics better reflect the brand's pricing power and the effectiveness of its omnichannel strategy. Relying solely on headline revenue growth may obscure the reality that the company is essentially buying market share through unsustainable promotional activity.
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Quick answers to the most common questions about buying HNST stock.
The Honest Company, Inc.'s current P/E ratio is -25.7x. This places it at the 50th percentile of its historical range.
The Honest Company, Inc.'s return on equity (ROE) is -9.1%. The historical average is -18.8%.
Based on historical data, The Honest Company, Inc. is trading at a P/E of -25.7x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
The Honest Company, Inc. has 33.3% gross margin and -5.0% operating margin.