tiprankstipranks
Trending News
More News >
Hims & Hers Health (HIMS)
NYSE:HIMS

Hims & Hers Health (HIMS) AI Stock Analysis

Compare
5,899 Followers

Top Page

HI

Hims & Hers Health

(NYSE:HIMS)

Rating:77Outperform
Price Target:
$61.00
▲(13.78%Upside)
The overall score reflects strong financial performance and positive earnings call highlights, tempered by high valuation concerns and potential volatility risks. Long-term strategic guidance and planned expansions provide optimism.
Positive Factors
Strategic Expansion
HIMS' acquisition of ZAVA marks a significant strategic expansion for the company as it materially increases its international footprint.
User Base Growth
Through the acquisition, HIMS anticipates its active user base will grow by 50% as the company expands into Ireland, France, and Germany.
Negative Factors
Execution Risk
There is some execution and integration risk associated with the deal.
International Expansion Risks
Expanding internationally while the US business slows is a risk and may reflect product saturation and rising competition in the U.S. markets.

Hims & Hers Health (HIMS) vs. SPDR S&P 500 ETF (SPY)

Hims & Hers Health Business Overview & Revenue Model

Company DescriptionHims & Hers Health (HIMS) is a telehealth company that operates in the healthcare and wellness sectors. The company provides a digital platform offering a range of health and wellness services, including prescription and over-the-counter medication, personal care products, and access to licensed healthcare professionals. Their services target common conditions such as hair loss, sexual health, skin care, and mental health, providing consumers with convenient and affordable healthcare solutions.
How the Company Makes MoneyHims & Hers Health generates revenue primarily through the sale of its products and services via its online platform. The company's business model includes a direct-to-consumer approach, where customers can subscribe to monthly plans for recurring shipments of prescription medications and personal care products. Revenue streams are diversified across various health categories, including sexual health, dermatology, mental health, and primary care. Key factors contributing to its earnings include its ability to leverage telemedicine to reduce costs and improve accessibility, its subscription-based model that ensures recurring revenue, and strategic partnerships with healthcare professionals and pharmaceutical companies to broaden its service offerings.

Hims & Hers Health Key Performance Indicators (KPIs)

Any
Any
Subscriptions
Subscriptions
Tracks the number of active subscriptions, highlighting recurring revenue streams and customer retention strength.
Chart InsightsHims & Hers Health has experienced robust subscription growth, reaching over 2.2 million subscribers by the end of 2024, a 45% increase year-over-year. This growth is driven by expanding personalized treatment offerings and strategic acquisitions. However, the company faces challenges with declining gross margins and potential regulatory issues, particularly concerning GLP-1 medications. Despite these risks, the company remains optimistic, projecting significant revenue growth for 2025 and aiming for improved margins by 2030 through continued investment in technology and personalized healthcare solutions.
Data provided by:Main Street Data

Hims & Hers Health Earnings Call Summary

Earnings Call Date:May 05, 2025
(Q1-2025)
|
% Change Since: 28.01%|
Next Earnings Date:Aug 11, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter with significant revenue growth, subscriber expansion, and strategic partnerships, particularly in the weight loss category. However, there are expected challenges in transitioning the sexual health vertical and managing gross margins.
Q1-2025 Updates
Positive Updates
Record Revenue Growth
Revenue grew 111% year-over-year to $586 million in the first quarter of 2025.
Subscriber Base Expansion
The subscriber base grew to nearly 2.4 million, reflecting a year-over-year increase of 38%.
Successful Weight Loss Category Expansion
Weight loss has become one of the company's largest specialties, with significant contributions from a collaboration with Novo Nordisk.
Strong Adjusted EBITDA Performance
Adjusted EBITDA increased to $91 million, nearly tripling from the same quarter last year.
Strategic Partnerships and New Offerings
Partnership with Novo Nordisk and the launch of branded Wegovy expanded the product offerings in the weight loss category.
New COO Appointment
Nader Kabbani, former operations leader at Amazon, was appointed as the new Chief Operating Officer.
Negative Updates
Transition in Sexual Health Vertical
The transition to more personalized and daily products in the sexual health vertical is expected to cause short-term volatility.
Gross Margin Impact
Gross margins declined approximately three points quarter-over-quarter as GLP-1 revenue scaled.
Challenges with Commercial Semaglutide Transition
The company is completing the transition of subscribers previously on commercially available doses of semaglutide, which is expected to result in a one-time revenue drop in the second quarter.
Company Guidance
During the Hims & Hers First Quarter 2025 Earnings Call, significant guidance metrics were shared, highlighting the company's strategic trajectory and financial targets. The company anticipates generating at least $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030, underscoring their commitment to long-term growth. For 2025, they expect full-year revenue between $2.3 billion and $2.4 billion, with adjusted EBITDA ranging from $295 million to $335 million, reflecting a 13% margin at the midpoint. In the first quarter alone, revenue grew by 111% year-over-year to $586 million, with adjusted EBITDA nearly tripling to $91 million. The subscriber base expanded to nearly 2.4 million, a 38% increase, with over 70% of new subscribers utilizing personalized solutions. Additionally, the company is focusing on five core growth drivers, including expanding personalization capabilities and entering new specialties, which are expected to propel future engagement and revenue growth.

Hims & Hers Health Financial Statement Overview

Summary
Hims & Hers Health exhibits strong revenue growth and improved profitability metrics, supported by a solid balance sheet with low leverage and increasing equity. The company has effectively managed cash flows, ensuring positive free cash flow generation. While historical challenges such as negative earnings and equity should be considered, the current financial trajectory is positive, indicating a stable outlook in the Household & Personal Products industry.
Income Statement
85
Very Positive
Hims & Hers Health has demonstrated robust revenue growth and improving profitability. Over the TTM, total revenue increased significantly by 20.86% from the previous annual period. The company's gross profit margin stood at 74.73%, and the net profit margin improved to 9.21%. Additionally, the EBIT margin increased to 6.19%, indicating better operational efficiency. However, historical losses and fluctuating margins in previous years pose a potential risk.
Balance Sheet
78
Positive
The balance sheet shows a healthy equity position with an equity ratio of 61.58%, indicating strong financial stability. The debt-to-equity ratio is low at 0.12, reflecting conservative leverage. Return on equity improved to 29.92%, suggesting effective use of equity to generate profits. The increase in stockholders' equity over time highlights the company's capital strength. However, past negative equity and liabilities exceeding assets in earlier years should be noted.
Cash Flow
82
Very Positive
Hims & Hers Health's cash flow from operations has consistently improved, with a significant increase in free cash flow by 14.68% over the latest period. The operating cash flow to net income ratio is robust at 2.03, demonstrating strong cash generation relative to earnings. The company has maintained positive free cash flow, indicative of good cash management practices. Past periods of negative free cash flow and operational cash flow constraints may pose risks.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
1.78B1.48B872.00M526.92M271.88M148.76M
Gross Profit
1.37B1.17B714.95M408.72M204.49M109.45M
EBIT
109.90M61.90M-29.45M-68.70M-115.04M-15.14M
EBITDA
132.26M78.99M-19.94M-61.22M-110.97M-14.09M
Net Income Common Stockholders
164.40M126.04M-23.55M-65.68M-107.66M-18.11M
Balance SheetCash, Cash Equivalents and Short-Term Investments
203.59M300.25M220.98M179.63M247.27M100.21M
Total Assets
448.11M707.54M441.19M366.34M420.58M118.70M
Total Debt
11.82M11.35M9.95M5.31M5.48M0.00
Net Debt
-93.41M-209.24M-86.72M-41.47M-66.30M-27.34M
Total Liabilities
103.62M230.82M97.16M54.60M85.97M265.57M
Stockholders Equity
344.48M476.72M344.03M311.74M334.62M-146.87M
Cash FlowFree Cash Flow
240.22M209.43M46.99M-33.78M-39.42M-6.71M
Operating Cash Flow
334.34M251.08M73.48M-26.53M-34.41M-2.48M
Investing Cash Flow
-64.89M-19.05M-12.11M34.70M-156.27M-39.70M
Financing Cash Flow
-100.56M-107.84M-11.47M-33.13M235.04M47.74M

Hims & Hers Health Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price53.61
Price Trends
50DMA
41.43
Positive
100DMA
40.19
Positive
200DMA
31.20
Positive
Market Momentum
MACD
3.16
Positive
RSI
53.00
Neutral
STOCH
15.09
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 53.61 is below the 20-day moving average (MA) of 56.52, above the 50-day MA of 41.43, and above the 200-day MA of 31.20, indicating a neutral trend. The MACD of 3.16 indicates Positive momentum. The RSI at 53.00 is Neutral, neither overbought nor oversold. The STOCH value of 15.09 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 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 1 New Risks
1.
We may not be able to maintain our profitability. Q4, 2024

Hims & Hers Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (53)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$4.39B26.5822.16%2.22%10.32%18.55%
77
Outperform
$12.25B78.0336.79%85.99%
EPEPC
69
Neutral
$1.25B15.485.53%2.26%-2.11%-28.79%
ELELF
67
Neutral
$6.47B61.0515.97%46.27%-26.45%
60
Neutral
$4.34B40.12-10.58%-1.68%-302.11%
NUNUS
54
Neutral
$389.37M-4.93%3.04%-11.85%-1080.00%
53
Neutral
$5.25B3.24-45.38%2.81%16.79%-0.06%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HIMS
Hims & Hers Health
53.61
32.04
148.54%
IPAR
Inter Parfums
137.12
20.10
17.18%
NUS
Nu Skin
7.88
-5.22
-39.85%
COTY
Coty
4.89
-5.31
-52.06%
EPC
Edgewell Personal Care
26.75
-11.78
-30.57%
ELF
e.l.f. Beauty
115.80
-67.71
-36.90%

Hims & Hers Health Corporate Events

Private Placements and Financing
Hims & Hers Health Issues $1 Billion in Notes
Neutral
May 13, 2025

On May 13, 2025, Hims & Hers Health issued $1 billion in senior unsecured notes, which are equal in payment rights to the company’s existing and future senior unsecured debts but are subordinate to secured debts. These notes, maturing on May 15, 2030, offer conversion options into Class A common stock under specific conditions and include provisions for redemption and repurchase under certain corporate events. Additionally, the company engaged in capped call transactions to mitigate potential stock dilution from note conversions, with a cap price set at $89.95 per share, representing a 75% premium over the stock’s last reported sale price on May 8, 2025.

The most recent analyst rating on (HIMS) stock is a Hold with a $40.00 price target. To see the full list of analyst forecasts on Hims & Hers Health stock, see the HIMS Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Hims & Hers Announces $450M Convertible Notes Offering
Positive
May 9, 2025

On May 8, 2025, Hims & Hers Health, Inc. announced a proposed private offering of $450 million in Convertible Senior Notes due 2030, aimed at qualified institutional buyers. The proceeds from this offering are intended to support the company’s global expansion and investment in AI and personalized healthcare solutions, reflecting Hims & Hers’ strategic focus on scaling access to high-quality, personalized care. The offering is expected to enhance the company’s market positioning by funding organic growth and potential acquisitions, although no definitive acquisition agreements are in place at this time.

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.

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.