ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The Honest Co's annualized net income for the quarter that ended in Mar. 2026 was $-0.2 Mil. The Honest Co's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $169.4 Mil. Therefore, The Honest Co's annualized ROE % for the quarter that ended in Mar. 2026 was -0.10%.
The historical rank and industry rank for The Honest Co's ROE % or its related term are showing as below:
HNST'
s ROE % Range Over the Past 10 Years
Min: -30.12 Med: -19.12 Max: -4.12
Current: -10.59
During the past 7 years, The Honest Co's highest ROE % was -4.12%. The lowest was -30.12%. And the median was -19.12%.
HNST's ROE % is ranked worse than 86.38% of 1916
companies
in the Consumer Packaged Goods industry
Industry Median: 6.735
vs HNST: -10.59
The Honest Co (NAS:HNST) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
The Honest Co ROE % Related Terms
The Honest Co ROE % Historical Data
* Premium members only.
The historical data trend for The Honest Co's ROE % 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.
For the Household & Personal Products subindustry, The Honest Co's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's ROE % distribution charts can be found below:
* The bar in red indicates where The Honest Co's ROE % 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 the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
The Honest Co (HNST) has a ROE % of -0.10% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Honest Co and its competitors. According to the industry distribution chart, The Honest Co ranks #1655 out of 1916 companies in the Consumer Packaged Goods industry, placing it in the top 86.4%.
Is The Honest Co's ROE % too high?
The Honest Co's current ROE % is -0.10%. Based on the distribution chart, The Honest Co ranks #1655 out of 1916 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. 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 ROE % compare to MAGN and NUS?
According to the Consumer Packaged Goods industry distribution chart, The Honest Co ranks #1655 out of 1916 companies for ROE %. This places The Honest Co in the lower half of its industry. The industry median ROE % is 6.74. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Consumer Packaged Goods company?
The median ROE % among Consumer Packaged Goods companies is 6.74, based on 1,916 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on The Honest Co and its competitors. For the Consumer Packaged Goods industry, the median ROE % is 6.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Honest Co's current ROE % is -0.10%. 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 $2.85, compared to a current price of $3.70 — trading 29.8% above its estimated fair value. The current ROE % is -0.10%. The Honest Co's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For The Honest Co (HNST), the current ROE % is -0.10% 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 $3.70 is trading 29.8% above its estimated GF Value™ of $2.85.
GuruFocus considers The Honest Co to be Modestly Overvalued.
Key valuation signals for HNST:
ROE %: -0.10%
GF Value™: $2.85 vs. price of $3.70 (29.8% above fair value)
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
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