The Honest CoHNST 60 3-Year RORE % is -14.29 as of Mar. 2026. GuruFocus rates HNST with a GF Score™ of 60/100 and a GF Value™ of $2.84 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,830 Consumer Packaged Goods companies, The Honest Co ranks worse than 66.45% on this metric.
Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
The Honest Co's 3-Year RORE % for the quarter that ended in Mar. 2026 was -14.29%.
The industry rank for The Honest Co's 3-Year RORE % or its related term are showing as below:
HNST's 3-Year RORE % is ranked worse than 66.45% of 1830
companies
in the Consumer Packaged Goods industry
Industry Median: 6.02
vs HNST: -14.29
The Honest Co (NAS:HNST) 3-Year RORE % Explanation
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
The Honest Co 3-Year RORE % Related Terms
The Honest Co 3-Year RORE % Historical Data
* Premium members only.
The historical data trend for The Honest Co's 3-Year RORE % 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 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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 RORE % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, The Honest Co's 3-Year RORE % distribution charts can be found below:
* The bar in red indicates where The Honest Co's 3-Year RORE % 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 3-year before.
The Honest Co (HNST) has a 3-Year RORE % of -14.29 as of Mar. 2026. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on The Honest Co and its competitors. According to the industry distribution chart, The Honest Co ranks #1216 out of 1830 companies in the Consumer Packaged Goods industry, placing it in the top 66.4%.
Is The Honest Co's 3-Year RORE % too high?
The Honest Co's current 3-Year RORE % is -14.29. Based on the distribution chart, The Honest Co ranks #1216 out of 1830 companies in the Consumer Packaged Goods industry, which is below the industry midpoint. 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 RORE % compare to MAGN and NUS?
According to the Consumer Packaged Goods industry distribution chart, The Honest Co ranks #1216 out of 1830 companies for 3-Year RORE %. This places The Honest Co in the lower half of its industry. The industry median 3-Year RORE % is 6.02. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year RORE % for a Consumer Packaged Goods company?
The median 3-Year RORE % among Consumer Packaged Goods companies is 6.02, based on 1,830 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year RORE % 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 RORE % mean?
A high 3-Year RORE % can signal that a stock is expensive relative to its fundamentals. 3-Year RORE % shows how much a company earns by reinvesting its retained earnings in 3-year. View historical data on The Honest Co and its competitors. For the Consumer Packaged Goods industry, the median 3-Year RORE % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Honest Co's current 3-Year RORE % is -14.29. 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 $2.84, compared to a current price of $3.94 — trading 38.7% above its estimated fair value. The current 3-Year RORE % is -14.29. 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 RORE % calculated?
3-Year RORE % is calculated from a company's financial statements. For The Honest Co (HNST), the current 3-Year RORE % is -14.29 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 $3.94 is trading 38.7% above its estimated GF Value™ of $2.84.
GuruFocus considers The Honest Co to be Significantly Overvalued.
Key valuation signals for HNST:
3-Year RORE %: -14.29
GF Value™: $2.84 vs. price of $3.94 (38.7% 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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