company background image
HIMS

Hims & Hers Health NYSE:HIMS Stock Report

Last Price

US$6.82

Market Cap

US$1.4b

7D

4.6%

1Y

-9.9%

Updated

10 Aug, 2022

Data

Company Financials +
HIMS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends0/6

HIMS Stock Overview

Hims & Hers Health, Inc. operates a multi-specialty telehealth platform that connects consumers to licensed healthcare professionals.

Hims & Hers Health Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hims & Hers Health
Historical stock prices
Current Share PriceUS$6.82
52 Week HighUS$9.35
52 Week LowUS$2.72
Beta0.49
1 Month Change26.77%
3 Month Change113.13%
1 Year Change-9.91%
3 Year Changen/a
5 Year Changen/a
Change since IPO-30.41%

Recent News & Updates

Jul 17

Hims & Hers Health: Promising Return Profile

Hims is a stock which the market has punished beyond what is rational. The company is progressing nicely towards profitability and the share price should begin to creep up. The company's value proposition will lead to a solid moat. The company's effort to vertically integrate will expedite this process. I believe the fair share price is around $18, which represents a 2-3x return on an investor's money. There are numerous risks involved, included, but not limited to: losses, rising interest rates, larger competitors, government regulation, and poor retention rates. Introduction Hims & Hers Health (HIMS) is a telehealth company which focuses on providing high-quality and easy access healthcare, primarily for stigmatized disorders. The company’s target demographics are millennials and Gen Z. The company is in its fifth year of operation and went public via SPAC in 2021. Since then, the share price has fallen from $25 to around $5 today, which represents an 80% decline. Why has the Share Price Fallen? There are a few aggregate-based explanations for why Hims has fallen: All major indices have significantly declined. Rates have increased, which lowers the future value of growth stocks the most. Investors are simply wrong and too negative in their forecast of the company’s future earnings. My rebuttal to the three reasons is as follows: It is a market of stocks, not a stock market. If a company’s earnings increase, its stock price will as well. The overall market being viscous might delay share appreciation but cannot do so forever. Ultimately, Hims stock price will reflect its true potential (as long as the company continues to execute). A company’s value is calculated by discounting all its future cash flows. The further into the future a company’s projected cash flows are, the more of an impact interest rates have mathematically. Hims should be profitable sooner rather than later if the company continues on its trajectory. As such, its future cash flows are closer than investors perceive, and the stock price will greatly benefit once they account for this realization. Investors who believe the company will not be profitable are wrong. The fact that Hims could be profitable today if they simply cut back on their marketing expense reveals the company can already be thought of as profitable (for the sake of evaluation). As the increased marketing spend turns into higher sales (and retention rates), the company’s top line will seep into its bottom line. Hims’ Moat I often hear investors complain Hims has no moat and thus will get gobbled up by larger competitors such as CVS (CVS) or Amazon (AMZN). What critics do not understand is moat comes second – the value proposition comes first. Investors who ask where is the moat are putting the “cart before the horse.” One can claim any company had no moat at first. What moat did NIKE (NKE) had at first? Anyone could create an athletic clothing brand. After all, adidas ([[ADDYY]], [[ADDDF]]) had a fifteen-year head start on Nike. I am sure skeptic investors at the time said Nike has no moat and Adidas can out-compete them. The value proposition is what matters. If Hims provides patients with high quality and convenient healthcare at the lowest price, it will produce a profit. As it produces a profit, the company will expand its capabilities and infrastructure while becoming more efficient. This is what people refer to when they mention 'moat' – it is the competitive advantages a business possesses that are derived by its capabilities, infrastructure, and efficiencies. In other words, value proposition creates the moat. It is illogical and non-chronological for a moat to create value. Hims’ Vertical Integration One of the keys to Hims’ value proposition and moat is the company’s ability to vertically integrate. Management has demonstrated they recognize this key and are progressing towards this goal. Mobile App The company’s primary touchpoint is its new mobile app, which allows patients to get a medical consultation directly from the app within a few taps. These consultations have grown at a CAGR of almost 130% from 2018-2021. Medical Consultations Since Launch (Hims Investor Presentation) Branded Products and Fulfillment Centers to Ship Them The company makes a large chunk of sales off its own brand name products and custom formularies rather than solely relying on third-party drug manufacturers. The company has two internal fulfillment centers, one in Ohio and one in Arizona, which fill over 50% of orders. Fulfillment Centers (Hims Investor Presentation) Although these are beginner steps toward vertical integration, it demonstrates the company is heading in the right directions and understands the importance of this strategy. Valuation I believe the company is worth $18.20 per share, which represents more than threefold increase from current levels. Revenue Growth I believe 2022 revenue growth will be $544MM. This represents a 100% increase over 2021 revenue of $272MM. Many readers have commented that this is too high and I disagree. Quarterly Revenue Growth (Hims Investor Presentation) From the graph above, we can see the company has increased revenue by 16.6% CAGR per quarter from Q1 2019 to Q1 2022. This was achieved without the main catalyst of the mobile app, not to mention the absence of thousands of new retail touchpoints. Simply extrapolating each quarter this year at a 16.6% growth rate leaves us with these forecasts: Q1 2022: $101MM Q2 2022: $118MM Q3 2022: $137MM Q4 2022: $160MM Adding up my forecasted revenue equals $516MM. I think the extra “umph” to get to $544MM will come from the mobile app; I think investors are severely underestimating the revenue-generating power of the app. Discounted Cash Flow Model Before I dive into the specifics, I want to point out valuation is an art, not a science. Two investors separately analyzing the same stock will almost certainly come up with two different valuations. Discounted Cash Flow Model (Author) COGS Cost of goods sold and gross margins are flip sides of the same coin. Hims' gross margin for 2021 was 75%. For 2022, I predict a 73% gross margin rate. From there, I gradually lowered it over the following years. Hims has expanded into numerous retail channels (Amazon, CVS, Walmart (WMT), etc.) and sales from those channels carry lower margins. Therefore, it is wise to factor this in the forecast. SGA The company's SGA expense as a percentage of sales was 117% in 2021. I assumed this would stay the same in 2022 and then would gradually get better since overall sales would outpace the spending at this level. Taxes, Net CA, CAPX

Shareholder Returns

HIMSUS HealthcareUS Market
7D4.6%1.0%1.2%
1Y-9.9%15.8%-11.6%

Return vs Industry: HIMS underperformed the US Healthcare industry which returned 14.3% over the past year.

Return vs Market: HIMS exceeded the US Market which returned -13.5% over the past year.

Price Volatility

Is HIMS's price volatile compared to industry and market?
HIMS volatility
HIMS Average Weekly Movement8.5%
Healthcare Industry Average Movement8.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: HIMS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: HIMS's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a398Andrew Dudumhttps://www.forhims.com

Hims & 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.

Hims & Hers Health Fundamentals Summary

How do Hims & Hers Health's earnings and revenue compare to its market cap?
HIMS fundamental statistics
Market CapUS$1.41b
Earnings (TTM)-US$83.03m
Revenue (TTM)US$373.75m

3.8x

P/S Ratio

-17.0x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HIMS income statement (TTM)
RevenueUS$373.75m
Cost of RevenueUS$94.85m
Gross ProfitUS$278.90m
Other ExpensesUS$361.94m
Earnings-US$83.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.40
Gross Margin74.62%
Net Profit Margin-22.22%
Debt/Equity Ratio0%

How did HIMS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HIMS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HIMS?

Other financial metrics that can be useful for relative valuation.

HIMS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.3x
Enterprise Value/EBITDA-16.4x
PEG Ration/a

Price to Sales Ratio vs Peers

How does HIMS's PS Ratio compare to its peers?

HIMS PS Ratio vs Peers
The above table shows the PS ratio for HIMS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average1x
PIII P3 Health Partners
0.4x36.3%US$1.3b
MODV ModivCare
0.7x7.5%US$1.6b
ADUS Addus HomeCare
1.7x7.3%US$1.5b
OPK OPKO Health
1.5x3.2%US$2.1b
HIMS Hims & Hers Health
3.8x21.0%US$1.4b

Price-To-Sales vs Peers: HIMS is expensive based on its Price-To-Sales Ratio (3.8x) compared to the peer average (1x).


Price to Earnings Ratio vs Industry

How does HIMS's PE Ratio compare vs other companies in the US Healthcare Industry?

Price-To-Sales vs Industry: HIMS is expensive based on its Price-To-Sales Ratio (3.8x) compared to the US Healthcare industry average (1.5x)


Price to Sales Ratio vs Fair Ratio

What is HIMS's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HIMS PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.8x
Fair PS Ratio8.2x

Price-To-Sales vs Fair Ratio: HIMS is good value based on its Price-To-Sales Ratio (3.8x) compared to the estimated Fair Price-To-Sales Ratio (8.2x).


Share Price vs Fair Value

What is the Fair Price of HIMS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HIMS ($6.82) is trading above our estimate of fair value ($0.3)

Significantly Below Fair Value: HIMS is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is Hims & Hers Health forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


37.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HIMS is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HIMS is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HIMS is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HIMS's revenue (21% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: HIMS's revenue (21% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HIMS is forecast to be unprofitable in 3 years.


Discover growth companies

Past Performance

How has Hims & Hers Health performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-13.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HIMS is currently unprofitable.

Growing Profit Margin: HIMS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HIMS is unprofitable, and losses have increased over the past 5 years at a rate of 13.2% per year.

Accelerating Growth: Unable to compare HIMS's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: HIMS is unprofitable, making it difficult to compare its past year earnings growth to the Healthcare industry (10.9%).


Return on Equity

High ROE: HIMS has a negative Return on Equity (-26.02%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Hims & Hers Health's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HIMS's short term assets ($230.5M) exceed its short term liabilities ($55.6M).

Long Term Liabilities: HIMS's short term assets ($230.5M) exceed its long term liabilities ($5.3M).


Debt to Equity History and Analysis

Debt Level: HIMS is debt free.

Reducing Debt: HIMS had no debt 5 years ago.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: HIMS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if HIMS has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Discover healthy companies

Dividend

What is Hims & Hers Health current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate HIMS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate HIMS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if HIMS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if HIMS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HIMS has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Andrew Dudum (33 yo)

5.58yrs

Tenure

US$15,230,255

Compensation

Mr. Andrew Dudum serves as Chairman of the Board and serves as Chief Executive Officer at Hims & Hers Health, Inc. since January 20, 2021. He Co-Founded Hims & Hers Health, Inc. in 2017. He is Co-founded H...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD15.23M) is above average for companies of similar size in the US market ($USD5.40M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: HIMS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: HIMS's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: HIMS insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Top Shareholders

Company Information

Hims & Hers Health, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hims & Hers Health, Inc.
  • Ticker: HIMS
  • Exchange: NYSE
  • Founded: NaN
  • Industry: Health Care Services
  • Sector: Healthcare
  • Implied Market Cap: US$1.411b
  • Shares outstanding: 206.85m
  • Website: https://www.forhims.com

Number of Employees


Location

  • Hims & Hers Health, Inc.
  • 2269 Chestnut Street
  • Suite 523
  • San Francisco
  • California
  • 94123
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/10 00:00
End of Day Share Price2022/08/10 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.