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Hims & Hers Health (HIMS)
NYSE:HIMS
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Hims & Hers Health
(NYSE:HIMS)
73Outperform
Positive Factors
Market Strategy
HIMS is expected to generate significant revenue from personalized GLP-1s as part of its weight loss contribution in 2025.
Revenue Guidance
The lion's share of HIMS' $725MM weight loss revenue guidance for 2025 likely reflects semaglutide contributions, and today’s decisions partly de-risks this component of the guide.
Negative Factors
Competition
Novo Nordisk's branded solution for the uninsured population is an incremental source of competition for HIMS' compounded semaglutide.
Market Position
The launch of NovoCare Pharmacy is expected to negatively impact Hims & Hers Health stock performance.
Regulatory Challenges
The end of bulk compounding of semaglutide by 503A and 503B facilities poses a challenge for Hims & Hers Health.
Hims & Hers Health (HIMS) vs. S&P 500 (SPY)
Market Cap
$7.71B
Dividend YieldN/A
Average Volume (3M)29.61M
Price to Earnings (P/E)64.9
Beta (1Y)3.18
Revenue Growth69.33%
EPS GrowthN/A
CountryUS
Employees1,046
SectorHealthcare
Sector Strength78
IndustryConsumer Products - Household & Personal
Share Statistics
EPS (TTM)0.53
Shares Outstanding213,787,950
10 Day Avg. Volume29,527,462
30 Day Avg. Volume29,607,773
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.19
Price to Cash Flow (P/CF)22.20
P/FCF Ratio22.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$45.08Price Target Upside30.78% Upside
Rating ConsensusHold
Number of Analyst Covering12
Hims & Hers Health Business Overview & Revenue Model
Company DescriptionHims & Hers Health (HIMS) is a telehealth company that provides a range of health and wellness products and services. It primarily operates in the digital health and wellness sectors, offering subscription-based access to licensed healthcare professionals and personalized treatment plans. The company focuses on providing convenient and affordable solutions for various health concerns, including sexual health, hair loss, dermatology, mental health, and primary care. Through its user-friendly platform, Hims & Hers Health aims to make healthcare more accessible and less stigmatized.
How the Company Makes MoneyHims & 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.85
Very Positive
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.78
Positive
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.81
Very Positive
| 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
Neutral
34.47
Price Trends
37.37
Negative
31.63
Positive
25.22
Positive
Market Momentum
-1.38
Positive
41.74
Neutral
17.29
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMS, the sentiment is Neutral. The current price of 34.47 is below the 20-day moving average (MA) of 46.68, below the 50-day MA of 37.37, and above the 200-day MA of 25.22, indicating a neutral trend. The MACD of -1.38 indicates Positive momentum. The RSI at 41.74 is Neutral, neither overbought nor oversold. The STOCH value of 17.29 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HIMS.
Hims & Hers Health Risk Analysis
Hims & Hers Health disclosed 65 risk factors in its most recent earnings report. Hims & Hers Health reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hims & Hers Health Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.34B | 60.35 | 21.24% | ― | 17.47% | 49.87% | |
73 Outperform | $7.71B | 64.90 | 30.71% | ― | 69.33% | ― | |
54 Neutral | $228.46M | ― | 1.10% | ― | 17.56% | 48.73% | |
53 Neutral | $4.42B | ― | -4584.47% | ― | 31.04% | 16.91% | |
49 Neutral | $6.90B | -0.08 | -53.01% | 2.43% | 24.84% | -3.06% | |
45 Neutral | $1.55B | ― | -52.46% | ― | -1.26% | -338.56% | |
43 Neutral | $127.07M | ― | -54.13% | ― | -1.81% | 70.88% |
* Healthcare Sector Average
Performance Comparison
HIMS
Hims & Hers Health
34.71
20.09
137.41%
EHTH
Ehealth
7.62
1.36
21.73%
TDOC
Teladoc
9.00
-6.37
-41.44%
GH
Guardant Health
42.63
23.99
128.70%
AMWL
American Well
8.14
-10.06
-55.27%
DOCS
Doximity
61.71
34.05
123.10%
Hims & Hers Health Earnings Call Summary
Earnings Call Date: Feb 24, 2025 | % Change Since: -32.82% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue and subscriber growth, along with strategic acquisitions and innovations in personalized treatment offerings. However, challenges such as declining gross margins, potential regulatory issues, and transitions in product offerings present notable risks. Overall, the positives in growth and strategic direction are tempered by these operational and regulatory concerns.Highlights
Record Revenue Growth
Revenue was $481 million for Q4 and $1.5 billion for the 2024 fiscal year, representing year-over-year growth of 95% for Q4 and 69% for the fiscal year.
Subscriber Growth
Total subscribers increased 45% to over 2.2 million in Q4, with over 55% subscribing to at least one personalized solution.
Expansion of Personalized Treatments
Unique form factors and personalized dosages are unlocking growth, with subscribers in men's and women's dermatology growing over 55% and 100% year-over-year, respectively.
First Full Year of GAAP Profitability
Net income was $26 million in Q4 and $126 million for the full year, marking the company's first full year of GAAP profitability.
Strong Cash Flow
The company generated nearly $60 million of free cash flow in Q4, totaling nearly $200 million for the year.
Innovative Acquisitions
Acquired whole body lab testing facilities and a peptide facility to enhance personalization and innovation in health care services.
Lowlights
Gross Margin Decline
Gross margins declined approximately two points quarter-over-quarter due to strategic pricing actions and the scaling of the GLP-1 offering.
Potential Regulatory Challenges
Concerns were raised about the regulatory framework for compounding GLP-1 medications, which may affect future offerings.
Pressure on Margins
Some pressure on gross and adjusted EBITDA margins is anticipated in the first quarter due to strategic pricing actions and investments.
Transition from Commercial Semaglutide
The transition away from commercially available semaglutide doses could impact the weight loss specialty's growth.
Company Guidance
During the Hims & Hers Fourth Quarter 2024 Earnings Call, the company provided guidance highlighting significant growth metrics and future projections. Revenue for the fourth quarter reached $481 million, with a substantial year-over-year growth of 95%, culminating in $1.5 billion for the fiscal year, representing a 69% increase from the previous year. The company anticipates revenue for 2025 to range between $2.3 billion to $2.4 billion, indicating a further increase of 56% to 63%. Adjusted EBITDA for 2025 is expected to be between $270 million and $320 million, with an adjusted EBITDA margin projected at 13%. The company reported a 45% increase in total subscribers, totaling over 2.2 million by the end of the year. Non-GLP-1 offerings contributed $1.2 billion, reflecting a 43% increase, and the weight loss platform alone is expected to generate at least $725 million in 2025. Hims & Hers plans to continue investing in expanding their diagnostic capabilities and technology infrastructure to enhance customer personalization and engagement, aiming for a long-term revenue retention rate above 85% and targeting margins of at least 20% by 2030.Hims & Hers Health Corporate Events
Executive/Board Changes
Hims & Hers Health Expands Board with New Appointment
Neutral
Nov 21, 2024
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.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.