Hims & Hers Health, Inc. (NYSE:HIMS) On The Verge Of Breaking Even

We feel now is a pretty good time to analyse Hims & Hers Health, Inc.'s (NYSE:HIMS) business as it appears the company may be on the cusp of a considerable accomplishment. Hims & Hers Health, Inc. operates a telehealth platform that connects consumers to licensed healthcare professionals in the United States, the United Kingdom, and internationally. The US$2.5b market-cap company announced a latest loss of US$24m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Hims & Hers Health's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Hims & Hers Health

According to the 12 industry analysts covering Hims & Hers Health, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$24m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 45%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Hims & Hers Health's upcoming projects, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we’d like to point out is that Hims & Hers Health has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of Hims & Hers Health to cover in one brief article, but the key fundamentals for the company can all be found in one place – Hims & Hers Health's company page on Simply Wall St. We've also put together a list of essential factors you should further research:

1. Valuation: What is Hims & Hers Health worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Hims & Hers Health is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Hims & Hers Health’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.