The Honest Company, Inc. cash flow to debt ratio of 108.31% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

The Honest Company, Inc.'s free cash flow has increased 1.25K% from $1.01M last year to $13.61M, signaling increasing performance

The Honest Company, Inc.'s debt to equity ratio is 0.01, which means that the company's assets are healthy financed, signaling financial stability.

The Honest Company, Inc.'s debt has decreased relative to shareholder equity from 0.12 last year to 0.01 today, signaling strengthened financials

The Honest Company, Inc. has a net cash position, so leverage is healthy.

The Honest Company, Inc.'s interest coverage ratio is -16.26, which means that the company struggles to meet interest obligations, signaling financial risk.

The Honest Company, Inc.'s profit margin has decreased (119.76%) in the last year from -1.62% to -3.56%, signaling decreasing performance

The Honest Company, Inc.'s short-term assets of $202.43M exceed its short-term liabilities of $50.82M

The Honest Company, Inc.'s return on assets of 0.00% is lower than the 5.00% threshold, indicating inefficient asset utilization

The Honest Company, Inc.'s return on equity of -6.99%, is lower than 15.00%, indicating bad performance

The Honest Company, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

The Honest Company, Inc. had positive net income in only 0 out of 5 years, indicating unstable earnings

The Honest Company, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

The Honest Company, Inc. has a free cash flow yield of 2.36%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

The Honest Company, Inc.'s yearly earnings has decreased 156.14% since last year from $-6.12M to $-15.69M, signaling decreasing performance

The Honest Company, Inc.'s yearly revenue has decreased 1.86% since last year from $378.34M to $371.32M, signaling decreasing performance

ROIC -6.37% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

The Honest Company, Inc.'s 3-year revenue CAGR of 5.79% is positive, indicating growing revenue over the past 3 years

The Honest Company, Inc. had revenue growth in 3 out of 5 years, indicating consistent revenue performance

The Honest Company, Inc. had positive ROE in only 0 out of 5 years, indicating inconsistent returns on equity

The Honest Company, Inc. has insufficient data to evaluate this check.

The Honest Company, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

The Honest Company, Inc. is overvalued relative to its fair value price of 0.57 based on EBITDA multiple model

The Honest Company, Inc. has negative or missing EBITDA, making EV/EBITDA ratio unreliable

The Honest Company, Inc. has insufficient data to evaluate this check.

The Honest Company, Inc. has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails

The Honest Company, Inc. has a price-to-book ratio of 3.47x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

The Honest Company, Inc. has a price-to-sales ratio of 1.69x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue