Today’s Stock: The Honest Company, Inc. (HNST)Today’s Stock: The Honest Company, Inc. (HNST)

The Honest Company, Inc. manufactures and sells diapers and wipes, skin and personal care, and household and wellness products. It offers baby care products, mama care products, baby clothing, and diaper bags; skin care products, including cleansers, moisturizers, serums and treatments, eye creams, and skincare kits; and face, eye, and lip makeup products, as well as makeup kits and brushes. The company also provides shower and bath products, hair care, face and body lotion, body care kits, and vitamins and supplements.

My Thoughts 💭My Thoughts 💭

Never heard of honest. The only reason I own shares in this company is due to this experiment.. Since then I see their products at CVS and noticed how much more expensive they are than the generic branded items.

Let’s take a look at the fundamentals from a bitcoin perspective!

At 3.1k sats per share ($70,414), and no dividend. This company would have to grow earnings/revenues at least 60% - 70% per year to justify using sats to buy this company.

The company trades at a PE 36 which means investors are paying $36 to access $1 of earnings. Stock is quite expensive for a home goods business which has low margins.

Let’s review some key fundamentals to determine if this stock is worth spending sats on.

PE:PE:

Expected Growth:Expected Growth:

Revenues and expenses:Revenues and expenses:

Balance Sheet:Balance Sheet:

Dividend:Dividend:

NoneNone

Bitcoin per share:Bitcoin per share:

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Ownership breakdown :Ownership breakdown :

Leadership:Leadership:

The fundamentals of this company are meh. The balance sheet is fantastic with zero debt and plenty of cash, but the growth prospects are terrible and they don’t pay a dividend, the profit margin is razor thin, and they are in a very competitive market place with almost no moat.

From a bitcoin lens a one share will only set you back about 3k sats but for what? A company that makes overpriced baby wipes under the holistic no harmful chemicals strategy . Most Americans don’t care and just want cheap products thus paying 36 times earnings is a big mistake even at this low sat price.

Here is my performance since I started buying shares almost 5 years ago:

Here is the performance according to Simply Wall Street

With institutions holding almost half the float and the stock is still under $10 one must ask where are the new buyers going to come from? The growth is weak in a crowded field of household goods. The company seems to be run well with no debt and a CEO that isn’t overpaid but I don’t see a reason why anyone should spend sats on this company. Keep your sats and skip this one.

Unfortunately for me I will buy shares continuously until my experiment is complete.