Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
The Honest CoHNST -1.88%60 Net-Net Working Capital is $0.89 as of Mar. 2026. GuruFocus rates HNST with a GF Score™ of 60/100 and a GF Value™ of $2.81 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 665 Consumer Packaged Goods companies, The Honest Co ranks better than 65.86% on this metric.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
The Honest Co's Net-Net Working Capital for the quarter that ended in Mar. 2026 was $0.89.
The industry rank for The Honest Co's Net-Net Working Capital or its related term are showing as below:
HNST's Price-to-Net-Net-Working-Capital is ranked better than 65.86% of 665
companies
in the Consumer Packaged Goods industry
Industry Median: 6.61
vs HNST: 4.10
The Honest Co (NAS:HNST) Net-Net Working Capital Explanation
One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.
Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.
The Honest Co Net-Net Working Capital Related Terms
The Honest Co Net-Net Working Capital Historical Data
* Premium members only.
The historical data trend for The Honest Co's Net-Net Working Capital can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HNST vs MAGN, NUS, WALD: Net-Net Working Capital Comparison
For the Household & Personal Products subindustry, The Honest Co's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Honest Co Price-to-Net-Net-Working-Capital vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where The Honest Co's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.
In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $0.89 mean?
The Honest Co (HNST) has a Net-Net Working Capital of $0.89 as of Mar. 2026. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on The Honest Co According to the industry distribution chart, The Honest Co ranks #227 out of 665 companies in the Consumer Packaged Goods industry, placing it in the top 34.1%.
Is The Honest Co's Net-Net Working Capital too high?
The Honest Co's current Net-Net Working Capital is $0.89. The Consumer Packaged Goods industry median Net-Net Working Capital is 6.61. The Honest Co's value of $0.89 is 86.5% below this industry median. Based on the distribution chart, The Honest Co ranks #227 out of 665 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, The Honest Co has a GF Score™ of 60/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Honest Co's Net-Net Working Capital compare to MAGN and NUS?
According to the Consumer Packaged Goods industry distribution chart, The Honest Co ranks #227 out of 665 companies for Net-Net Working Capital. This puts The Honest Co in the upper half of its industry. The industry median Net-Net Working Capital is 6.61. The Honest Co's value of $0.89 is 86.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for a Consumer Packaged Goods company?
The median Net-Net Working Capital among Consumer Packaged Goods companies is 6.61, based on 665 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Honest Co's current Net-Net Working Capital of $0.89 is 86.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on The Honest Co For the Consumer Packaged Goods industry, the median Net-Net Working Capital is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Honest Co's current Net-Net Working Capital is $0.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Honest Co stock overvalued right now?
Based on GuruFocus' analysis, The Honest Co (HNST) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.81, compared to a current price of $3.65 — trading 29.7% above its estimated fair value. The current Net-Net Working Capital is $0.89 and 86.5% below the Consumer Packaged Goods industry median of 6.61. The Honest Co's overall GF Score™ is 60/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For The Honest Co (HNST), the current Net-Net Working Capital is $0.89 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Honest Co (HNST) Overvalued in 2026?
Based on GuruFocus' analysis, The Honest Co stock appears to be overvalued.
The current stock price of $3.65 is trading 29.7% above its estimated GF Value™ of $2.81.
GuruFocus considers The Honest Co to be Modestly Overvalued.
Key valuation signals for HNST:
Net-Net Working Capital: $0.89
GF Value™: $2.81 vs. price of $3.65 (29.7% above fair value)
Industry Position: 86.5% below the Consumer Packaged Goods median (#227 of 665)
No single metric tells the full story. See the HNST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Honest Co Inc is a personal care company dedicated to creating cleanly-formulated and sustainably-designed products for everyone from babies to adults. By combining thoughtful design with science-based innovation, the company delivers personal care products for everyone from babies to adults, spanning categories across wipes, personal care, diapers, and beauty. It has three product categories namely; Diapers and Wipes, Skin and Personal Care, and Household and Wellness, out of which the majority of its revenue is generated from the sale of diapers and wipes. The company operates only in the United States.
60GF Score
Get the complete analysis for HNST
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HNST has been successfully added to your 
