🏥 What Is Hims & Hers?
Hims & Hers Health is a U.S.-based telehealth platform founded in 2017. It enables users to consult professionals for treatments in areas like sexual health, mental wellness, dermatology, and weight management, delivering prescriptions and OTC products directly. HIMS went public in 2021 via SPAC and now serves customers in the U.S. and U.K. investors.com+15en.wikipedia.org+15investing.com+15
💵 HIMS Business & Revenue Growth
- Revenue jumped from $149 M in 2020 to $1.48 B in 2024; Q1 2025 sales rose +111% YoY to $586 M +1
- Subscribers hit ~2.4 million, with ARPU around $84/month
- They’ve diversified from male health into dermatology, mental health, GLP‑1 weight-loss, menopause, and testosterone treatments +1
- Operating profit arrived in 2024, signaling improving margins +2
⚠️ HIMS Recent Risks & Volatility
- HIMS stock plunged ~35% after Novo Nordisk ended its brief Wegovy partnership, accusing Hims of compounding knockoff drug versions and breaching FDA rules +3
- Such compounding practices may have accounted for ~50% of HIMS’ 2025 weight-loss revenue—meaning significant top-line impact ft.com
- Regulatory scrutiny and legal challenges continue amid shifting FDA policy +4
📊 Fundamentals at a Glance
Valuation & Financial Health:
- P/E trailing ~40×, with forward estimates near ~60×—well above healthcare peers (~22×)
- EV/Sales ~5×; EV/EBITDA ~66× tradingview.com
- Solvency is strong: Altman-Z ~18.8, no debt, quick ratio ~1.3, current ratio ~1.6 +5
- Growth metrics: ROA ~18%, ROE ~30%, ROIC ~15%; EPS +7000% YoY; Revenue +86% YoY
Analyst View & Fair Value:
- Analyst consensus: Hold, with a 12-month average target of ~$38 (≈11% downside) +6
- Fair-value models (Simply Wall St, Seeking Alpha, Moomoo):
- DCF fair value ~$60–$64 seekingalpha.com
- Simply Wall St: intrinsic fair value ~$106 simplywall.st
- InvestingPro flagged overvaluation at ~$60 before the recent drop investing.com
🎯 Rawstocks Rating: B-
HIMS Breakdown:
- 📈 Strengths: Revenue and subscriber growth, expanding offerings, strong profitability metrics, robust balance sheet
- ⚠️ Weaknesses: High valuation multiples, execution risk post-Novo breakup, regulatory uncertainty
- 📌 Catalysts: Expansion into GLP‑1 (with Eli Lilly), European growth (via Zava), sustaining ARPU increases
- 📉 Risks: Compounded drug controversies, full weight-loss revenue blow, margin pressure
Considering growth vs. risk, HIMS earns a B‑ rating—a speculative Buy for those comfortable with volatility, but not yet a strong conviction. RSI suggests upside to the $60–$64 range.
💰 Fair Value Estimate
- Base-case fair value: $60–$64 based on conservative DCF and earnings projections
- Upside potential: If weight-loss pivot renews, price could reach $80+ (Simply Wall St high estimate ~$106)
🧾 Final Takeaway
Hims & Hers is a high-growth telehealth disruptor with real traction and multiple revenue verticals. While it shows strong margins and a clean balance sheet, recent volatility and valuation premia demand caution.
If you’re growth-minded and can stomach volatility, consider accumulating below ~$50 with a target near $60. Defensive investors or those wary of regulatory/restocking risk may prefer to wait for earnings clarity or pricing reset.
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Read: “From Gamblers to Pros — The Mental Framework”
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