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Hims & Hers Health (HIMS)
NYSE:HIMS
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Hims & Hers Health
(NYSE:HIMS)
68Neutral
Positive Factors
Business Model
Today's announcement further validates HIMS' direct-to-consumer model as a platform for broader drug partnerships.
Market Position
Hims & Hers Health, Inc. is uniquely positioned to personalize and democratize healthcare and wellness, making it a standout platform with scale and awareness.
Partnerships
Today's announced partnership with Novo Nordisk is an extremely important validation of the HIMS business model and also removes a significant amount of concerns on the path to maintaining weight management revenue.
Negative Factors
Competitive Landscape
The competitive landscape is intensifying, which poses challenges for Hims & Hers Health, Inc.
Consumer Trends
The Underperform rating is reiterated due to weakening consumer trends and growth rates.
Financial Projections
There are concerns that estimates for FY25 and FY26 will likely come down, presenting downside risk to the stock.
Hims & Hers Health (HIMS) vs. S&P 500 (SPY)
Market Cap
$9.13B
Dividend YieldN/A
Average Volume (3M)28.09M
Price to Earnings (P/E)76.3
Beta (1Y)2.88
Revenue Growth69.33%
EPS GrowthN/A
CountryUS
Employees1,637
SectorHealthcare
Sector Strength57
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.53
Shares Outstanding215,287,610
10 Day Avg. Volume36,795,403
30 Day Avg. Volume28,091,914
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap0.61
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.72
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.67Price Target Upside2.08% Upside
Rating ConsensusHold
Number of Analyst Covering13
Hims & Hers Health Business Overview & Revenue Model
Company DescriptionHims & 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 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 Key Performance Indicators (KPIs)
Any
Subscriptions
Tracks the number of active subscriptions, reflecting customer retention, recurring revenue potential, and overall business stability.
Tracks the number of active subscriptions, reflecting customer retention, recurring revenue potential, and overall business stability.
Data provided by:
Main Street Data
Main Street DataHims & 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
Positive
40.82
Price Trends
33.37
Positive
33.94
Positive
27.00
Positive
Market Momentum
0.78
Negative
66.92
Neutral
82.21
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HIMS, the sentiment is Positive. The current price of 40.82 is above the 20-day moving average (MA) of 29.15, above the 50-day MA of 33.37, and above the 200-day MA of 27.00, indicating a bullish trend. The MACD of 0.78 indicates Negative momentum. The RSI at 66.92 is Neutral, neither overbought nor oversold. The STOCH value of 82.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HIMS.
Hims & Hers Health Risk Analysis
Hims & Hers Health disclosed 63 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 (52)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.63B | 22.09 | 22.76% | 2.70% | 10.22% | 7.55% | |
68 Neutral | $9.13B | 76.33 | 30.71% | ― | 69.33% | ― | |
67 Neutral | $3.84B | 40.47 | 14.24% | ― | 46.27% | -26.45% | |
67 Neutral | $1.47B | 16.72 | 6.02% | 1.96% | -1.24% | -10.95% | |
62 Neutral | $4.53B | 40.12 | 0.33% | ― | 1.35% | -99.94% | |
57 Neutral | $305.84M | ― | -19.90% | 3.88% | -12.04% | -1796.38% | |
52 Neutral | $5.35B | 3.96 | -42.60% | 2.86% | 17.58% | 1.27% |
* Healthcare Sector Average
Performance Comparison
HIMS
Hims & Hers Health
40.82
29.17
250.39%
IPAR
Inter Parfums
113.02
-3.80
-3.25%
NUS
Nu Skin
6.19
-5.69
-47.90%
COTY
Coty
5.17
-6.33
-55.04%
EPC
Edgewell Personal Care
30.57
-6.33
-17.15%
ELF
e.l.f. Beauty
68.05
-96.64
-58.68%
Hims & Hers Health Earnings Call Summary
Earnings Call Date:Feb 24, 2025
(Q4-2024)
| % Change Since: -20.44%|
Next Earnings Date:May 05, 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.Q4-2024 Updates
Positive Updates
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.
Negative Updates
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 COO Transition to Advisory Role
Neutral
Apr 21, 2025
On April 21, 2025, Melissa Baird, the Chief Operating Officer of Hims & Hers Health, announced her plan to transition into an advisory role with the company. Her departure date is yet to be determined, but she will remain until a successor is found to ensure a smooth transition, and a long-term agreement will be established to retain her expertise.
Spark’s Take on HIMS Stock
According to Spark, TipRanks’ AI Analyst, HIMS is a Neutral.
Hims & Hers Health exhibits robust financial performance with strong revenue and profit growth, which is a significant factor in its stock evaluation. However, technical indicators show bearish tendencies, and the stock’s high P/E ratio suggests it may be overvalued. The earnings call provided positive guidance, but risks associated with declining margins and regulatory challenges could impact future performance.
To see Spark’s full report on HIMS stock, click here.
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.