Hims & Hers Health (HIMS) AI Stock Analysis

• Market Cap: $6.05B
• Dividend Yield: N/A
• Average Volume (3M): 23.79M
• Price to Earnings (P/E): 50.9
• Beta (1Y): 2.76
• Revenue Growth: 69.33%
• EPS Growth: N/A
• Country: US
• Employees: 1,637
• Sector: Healthcare
• Sector Strength: 71
• Industry: Household & Personal Products
• EPS (TTM): 0.53
• Shares Outstanding: 213,787,950
• 10 Day Avg. Volume: 26,242,687
• 30 Day Avg. Volume: 23,794,385
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 5.23
• Price to Cash Flow (P/CF): 22.30
• P/FCF Ratio: 22.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $45.77
• Price Target Upside: 68.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

Hims & Hers Health exhibits strong financial performance with significant revenue growth and profitability improvements. However, the technical indicators suggest caution with a bearish trend in the market. The valuation appears stretched with a high P/E ratio, and the earnings call indicated both growth and some operational risks. These factors lead to a moderately positive overall score.

Positive Factors

Market Momentum

The Hims & Hers platform is seeing strong momentum, with app downloads up 47% y/y and web traffic up 18% y/y.

Product Expansion

Hims is broadening its weight loss offering to include Lilly's branded tirzepatide and generic liraglutide.

Negative Factors

Margin Pressure

Continuing to 'invest in price' highlights the competitive nature of HIMS' offering, which will ultimately weigh on margins.

Pricing Challenges

The high cost of branded GLP-1 offerings on the website will be prohibitive, making retention challenging given the higher price point of the branded alternatives.

Regulatory Risks

The 'combo medications' in the core could potentially garner regulatory scrutiny as they fall into a regulatory gray area.

Hims & Hers Health Business Overview & Revenue Model

Company Description

Hims & Hers Health, Inc. operates a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals. The company offers a range of health and wellness products and services available to purchase on its websites and mobile application directly by customers. It also provides prescription medication on a recurring basis and ongoing care from healthcare providers; and over-the-counter drug and device products, cosmetics, and supplement products, primarily focusing on wellness, sexual health and wellness, skincare, and hair care. The company's curated non-prescription products include vitamin C, melatonin, biotin, and collagen protein supplements in the wellness category; moisturizer, serums, and face wash in the skincare category; condoms, climax delay spray and wipes, vibrators, and lubricants in the sexual health and wellness category; and shampoos, conditioners, scalp scrubs, and topical treatments, such as minoxidil in the hair care category. In addition, it offers medical consultation services, as well as health and wellness products through wholesale partners. The company is based in San Francisco, California.

How the Company Makes Money

Hims & Hers Health generates revenue primarily through the sale of healthcare products and services via a direct-to-consumer model. The company's key revenue streams include subscription fees for ongoing access to healthcare consultations and prescription medications. Customers can purchase one-time or subscription-based products, which often include a healthcare professional's consultation. Additionally, Hims & Hers collaborates with pharmacies and healthcare providers to fulfill prescriptions and manage logistics, which also contributes to its earnings. The company's focus on affordable, accessible healthcare solutions and its ability to leverage digital platforms play significant roles in its revenue generation.

Hims & Hers Health Financial Statement Overview

Summary

Hims & Hers Health demonstrates strong financial performance with significant revenue growth, improved profitability, and efficient cash flow management. Low leverage and a high equity ratio contribute to a stable balance sheet. Prospective investors should be aware of the rapid expansion and ensure continued focus on sustainable growth.

Income Statement

Hims & Hers Health has shown strong revenue growth with a Revenue Growth Rate of 69.3% from 2023 to 2024. The Gross Profit Margin is impressive at 79.5%, indicating efficient cost management. The Net Profit Margin improved significantly to 8.5% from a negative figure, reflecting enhanced profitability. The EBIT and EBITDA margins have also turned positive, signaling operational improvements.

Balance Sheet

The company's financial position is solid with a Debt-to-Equity Ratio of 0.02, indicating low leverage. The Return on Equity (ROE) is strong at 26.4%, showcasing effective use of equity capital. The Equity Ratio stands at 67.3%, suggesting a stable capital structure. However, the rapid increase in total assets and equity might pose risks if not managed carefully.

Cash Flow

Operating cash flow is robust, showing a healthy Operating Cash Flow to Net Income Ratio of 1.99. The Free Cash Flow to Net Income Ratio is also favorable at 1.66, indicating good cash generation relative to profits. The Free Cash Flow Growth Rate is remarkable at 345.9%, reflecting substantial improvements in cash management.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.48B	872.00M	526.92M	271.88M	148.76M
	Gross Profit
1.17B	714.95M	408.72M	204.49M	109.45M
	EBIT
61.90M	-29.45M	-68.70M	-115.04M	-15.14M
	EBITDA
61.90M	-19.94M	-61.22M	-110.97M	-14.09M
	Net Income Common Stockholders
126.04M	-23.55M	-65.68M	-107.66M	-18.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
300.25M	220.98M	179.63M	247.27M	100.21M
	Total Assets
707.54M	441.19M	366.34M	420.58M	118.70M
	Total Debt
11.35M	9.95M	5.31M	5.48M	0.00
	Net Debt
-209.24M	-86.72M	-41.47M	-66.30M	-27.34M
	Total Liabilities
230.82M	97.16M	54.60M	85.97M	265.57M
	Stockholders Equity
476.72M	344.03M	311.74M	334.62M	-146.87M
Cash Flow		Free Cash Flow
209.43M	46.99M	-33.78M	-39.42M	-6.71M
	Operating Cash Flow
251.08M	73.48M	-26.53M	-34.41M	-2.48M
	Investing Cash Flow
-19.05M	-12.11M	34.70M	-156.27M	-39.70M
	Financing Cash Flow
-107.84M	-11.47M	-33.13M	235.04M	47.74M

Hims & Hers Health Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMS, the sentiment is Negative. The current price of 27.23 is below the 20-day moving average (MA) of 30.67, below the 50-day MA of 38.62, and above the 200-day MA of 26.41, indicating a neutral trend. The MACD of -2.73 indicates Negative momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 40.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HIMS.

Hims & Hers Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IPAR	76 Outperform	$3.41B	20.74	22.76%	2.87%	10.22%	7.55%
HIMS	71 Outperform	$6.05B	50.92	30.71%	―	69.33%	―
ELF	67 Neutral	$3.02B	31.88	14.24%	―	46.27%	-26.45%
EPC	63 Neutral	$1.44B	16.30	6.02%	2.01%	-1.24%	-10.95%
NUS	57 Neutral	$307.82M	―	-19.90%	3.85%	-12.04%	-1796.38%
COTY	57 Neutral	$4.53B	40.12	0.33%	―	1.35%	-99.94%
Sector *	48 Neutral	$6.46B	1.17	-47.75%	2.67%	19.50%	0.61%

Hims & Hers Health Corporate Events

Hims & Hers Health Expands Board with New Appointment

Hims & Hers Health, Inc. has expanded its board of directors, appointing Deb Autor as the tenth member. She will serve until the 2025 annual meeting and is deemed independent under NYSE standards. Autor will also provide consulting services for a year, earning a $100,000 fee. Her appointment includes joining the Risk Committee alongside other notable directors.