HIMS

• Revenue: $401.6 million, up 77% year-over-year.

• Net Income: $75.6 million, achieving profitability compared to a net loss of $7.6 million in Q3 2023.

• Gross Margin: 79%, indicating strong operational efficiency.

• EPS (Earnings Per Share): $0.32, significantly surpassing analyst expectations of $0.06.

• Free Cash Flow: $79.4 million, reflecting robust cash generation.

💰 Valuation Analysis

• P/E Ratio: 47.98x, higher than the industry average, reflecting a growth premium.

• P/S Ratio: 5.3x, indicating that the market values its revenue growth highly.

• Forward P/E: 74.41x, suggesting a continued growth trajectory.

• PEG Ratio: 1.1, highlighting a good balance between growth and valuation.

• Market Cap: $4.5 billion, solidifying its status as a mid-cap stock.

📈 Growth Metrics

• 2025 EPS Growth Forecast: Hims & Hers is projected to see continued strong growth, driven by personalized healthcare solutions and expansion into new therapeutic areas.

• Price Target: Analysts have set a consensus price target of $27.5, reflecting confidence in Hims & Hers’ sustained performance.

🔍 Revenue Breakdown

1. Online Revenue (98%): $392.6 million (+79% YoY)
• Growth driven by increased subscriber base and higher average revenue per user.

2. Wholesale Revenue (2%): $9 million (+20% YoY)
• Steady growth in retail partnerships and product distribution.

🔮 Forecast

Final Summary

• 🚀 Buy: Hims & Hers’ leading position in the telehealth market and solid growth make it an appealing stock.

• 📊 Risk Adjusted: While the company’s financials are strong, its high multiples and potential regulatory risks warrant a cautious approach.

• 💡 Valuation Moderation: Hims & Hers’ growth potential supports its valuation, but risks justify a slightly lower rating.

• ⚠️ Risks: Regulatory changes and competition could impact future growth, but the long-term outlook remains positive.