The Honest CoHNST +1.26%60 3-Year ROIIC % is -46.49 as of Dec. 2025. GuruFocus rates HNST with a GF Score™ of 60/100 and a GF Value™ of $2.83 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,829 Consumer Packaged Goods companies, The Honest Co ranks worse than 86.6% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
The Honest Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -46.49%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for The Honest Co's 3-Year ROIIC % or its related term are showing as below:
HNST's 3-Year ROIIC % is ranked worse than 86.6% of 1829
companies
in the Consumer Packaged Goods industry
Industry Median: 2.74
vs HNST: -46.49
The Honest Co (NAS:HNST) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
The Honest Co 3-Year ROIIC % Related Terms
The Honest Co 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for The Honest Co's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Household & Personal Products subindustry, The Honest Co's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where The Honest Co's 3-Year ROIIC % falls into.
The Honest Co's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -14.302 (Dec. 2025) - -49.78 (Dec. 2022) )
/
( 94.049 (Dec. 2025) - 170.355 (Dec. 2022) )
=
35.478
/
-76.306
=
-46.49%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
The Honest Co (HNST) has a 3-Year ROIIC % of -46.49 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Honest Co and its competitors. According to the industry distribution chart, The Honest Co ranks #1584 out of 1829 companies in the Consumer Packaged Goods industry, placing it in the top 86.6%.
Is The Honest Co's 3-Year ROIIC % too high?
The Honest Co's current 3-Year ROIIC % is -46.49. Based on the distribution chart, The Honest Co ranks #1584 out of 1829 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 Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Honest Co's 3-Year ROIIC % compare to MAGN and NUS?
According to the Consumer Packaged Goods industry distribution chart, The Honest Co ranks #1584 out of 1829 companies for 3-Year ROIIC %. This places The Honest Co in the lower half of its industry. The industry median 3-Year ROIIC % is 2.74. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Consumer Packaged Goods company?
The median 3-Year ROIIC % among Consumer Packaged Goods companies is 2.74, based on 1,829 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on The Honest Co and its competitors. For the Consumer Packaged Goods industry, the median 3-Year ROIIC % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Honest Co's current 3-Year ROIIC % is -46.49. 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 Significantly Overvalued. The stock's GF Value™ is $2.83, compared to a current price of $4.01 — trading 41.7% above its estimated fair value. The current 3-Year ROIIC % is -46.49. The Honest Co's overall GF Score™ is 60/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For The Honest Co (HNST), the current 3-Year ROIIC % is -46.49 as of Dec. 2025. 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 $4.01 is trading 41.7% above its estimated GF Value™ of $2.83.
GuruFocus considers The Honest Co to be Significantly Overvalued.
Key valuation signals for HNST:
3-Year ROIIC %: -46.49
GF Value™: $2.83 vs. price of $4.01 (41.7% 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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