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Upturn AI SWOT - About
Honest Company Inc (HNST)
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Upturn Advisory Summary
03/27/2025: HNST (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 85.86% | Avg. Invested days 27 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  4.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 520.59M USD | Price to earnings Ratio - | 1Y Target Price 7.42 |
Price to earnings Ratio - | 1Y Target Price 7.42 | ||
Volume (30-day avg) 2904689 | Beta 2.45 | 52 Weeks Range 2.40 - 8.97 | Updated Date 04/2/2025 |
52 Weeks Range 2.40 - 8.97 | Updated Date 04/2/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -0.06 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -1.62% | Operating Margin (TTM) -1.03% |
Management Effectiveness
Return on Assets (TTM) -1.76% | Return on Equity (TTM) -4.12% |
Valuation
Trailing PE - | Forward PE 24.51 | Enterprise Value 466894707 | Price to Sales(TTM) 1.38 |
Enterprise Value 466894707 | Price to Sales(TTM) 1.38 | ||
Enterprise Value to Revenue 1.23 | Enterprise Value to EBITDA 157.95 | Shares Outstanding 108910000 | Shares Floating 94178089 |
Shares Outstanding 108910000 | Shares Floating 94178089 | ||
Percent Insiders 13.09 | Percent Institutions 63.82 |
Analyst Ratings
Rating 4.12 | Target Price 7.29 | Buy 1 | Strong Buy 4 |
Buy 1 | Strong Buy 4 | ||
Hold 3 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Honest Company Inc
Company Overview
History and Background
The Honest Company, Inc. was founded in 2011 by Jessica Alba. It focuses on creating eco-friendly and ethically sourced consumer products. The company initially gained traction with its subscription-based diaper service and expanded into various personal care and household products.
Core Business Areas
- Diapers and Wipes: Offers eco-friendly diapers and wipes designed with plant-based materials and without harsh chemicals. This was their initial successful product line and still a key part of their portfolio.
- Skin and Personal Care: Includes a range of skincare, haircare, and personal care products formulated with natural and organic ingredients, targeting families and individuals seeking safer alternatives.
- Household and Cleaning: Provides eco-friendly cleaning products and household essentials designed to be effective while minimizing environmental impact.
Leadership and Structure
Carla Vernu00f3n is the current CEO. The company operates with a functional organizational structure, encompassing departments such as marketing, product development, sales, and operations, all reporting to the executive leadership team.
Top Products and Market Share
Key Offerings
- Diapers: Eco-friendly diapers made with plant-based materials. Market share data is difficult to pinpoint exactly, but Honest is a leading brand in the eco-friendly diaper segment. Competitors include Pampers (PG), Huggies (KMB), and Seventh Generation (UNVR).
- Wipes: Plant-based wipes that are gentle on skin. Like diapers, Honest holds a notable portion of the eco-friendly wipes market. Competitors are the same as above, Pampers (PG), Huggies (KMB), and Seventh Generation (UNVR).
- Skincare: Clean beauty skincare product line that are cruelty-free and made with safe ingredients. The organic skincare market is highly competitive, with Estee Lauder (EL), L'Oreal (OR.PA) and Unilever (UL) being major players.
Market Dynamics
Industry Overview
The market for eco-friendly and sustainable consumer products is growing rapidly, driven by increasing consumer awareness of environmental and health concerns. There is growing demand for transparency in ingredients and ethical sourcing.
Positioning
Honest Company is positioned as a premium brand offering safe, effective, and ethically sourced products. It aims to appeal to consumers willing to pay a premium for environmentally friendly and healthier alternatives. The company's competitive advantages are its brand reputation, focus on clean ingredients, and direct-to-consumer capabilities.
Total Addressable Market (TAM)
The TAM for the combined markets of diapers, skincare, and household cleaning products is estimated to be in the hundreds of billions of dollars globally. Honest Company is positioned to capture a small but growing share of this large market by focusing on the premium, eco-conscious segment.
Upturn SWOT Analysis
Strengths
- Strong brand reputation
- Focus on clean and sustainable products
- Direct-to-consumer capabilities
- Celebrity founder association (Jessica Alba)
- Emphasis on transparency in ingredients
Weaknesses
- Premium pricing can limit accessibility
- Smaller scale compared to major competitors
- Vulnerable to negative publicity
- Historical controversies over product ingredients (resolved)
- Profitability challenges
Opportunities
- Expansion into new product categories
- Increased penetration in international markets
- Partnerships with major retailers
- Leveraging social media and influencer marketing
- Growing demand for eco-friendly products
Threats
- Increased competition from established players and new entrants
- Changing consumer preferences
- Economic downturn impacting consumer spending
- Fluctuations in raw material costs
- Potential for negative regulatory changes
Competitors and Market Share
Key Competitors
- PG
- KMB
- UNVR
- CL
Competitive Landscape
Honest Company competes in a market dominated by larger, more established consumer goods companies. It differentiates itself through its focus on natural and sustainable ingredients, but its premium pricing can be a disadvantage against competitors offering lower-priced alternatives.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Reviewing the company's past financial reports is necessary to understand its historical growth rate.
Future Projections: Analyst estimates vary and would need to be sourced from financial news outlets or analyst reports.
Recent Initiatives: Please consult recent press releases and investor presentations to learn about the company's strategic initiatives.
Summary
Honest Company has a strong brand focused on sustainability and clean ingredients. However, profitability remains a challenge due to strong competition and reliance on premium pricing. The company needs to carefully manage its cost structure and expand its market reach to achieve sustainable growth. They should keep an eye on changing consumer trends.
Similar Companies
CL
Colgate-Palmolive Company
CL
Colgate-Palmolive Company
KMB
Kimberly-Clark Corporation
KMB
Kimberly-Clark Corporation
NWL
Newell Brands Inc
NWL
Newell Brands Inc
PG
Procter & Gamble Company
PG
Procter & Gamble Company
Sources and Disclaimers
Data Sources:
- Company Filings (SEC)
- Analyst Reports
- Market Research Reports
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance can change rapidly. Please refer to official company reports and consult with a financial advisor before making any investment decisions. The market share data is only an approximation.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Honest Company Inc
Exchange NASDAQ | Headquaters Los Angeles, CA, United States | ||
IPO Launch date 2021-05-04 | CEO & Director Ms. Carla Vernon | ||
Sector Consumer Defensive | Industry Household & Personal Products | Full time employees 164 | Website https://www.honest.com |
Full time employees 164 | Website https://www.honest.com | ||
The Honest Company, Inc. manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. It offers baby care products, mama care products, baby clothing, and diaper bags; skin care products, including cleansers, moisturizers, serums and treatments, eye creams, and skincare kits; and face, eye, and lip makeup products, as well as makeup kits and brushes. The company also provides shower and bath products, hair care, face and body lotion, body care kits, and vitamins and supplements. In addition, it sells its products through digital and retail sales channels, such as its website and third-party ecommerce sites, as well as brick and mortar retailers. The Honest Company, Inc. was incorporated in 2011 and is headquartered in Los Angeles, California.
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