Stock (Symbol) |
Hims & Hers Health (HIMS) |
Stock Price |
$21 |
Sector |
| Healthcare |
Data is as of |
| May 30, 2024 |
Expected to Report |
| August 5 |
Company Description |
 Hims & Hers Health, Inc. provides a consumer-first platform, which helps customers to fulfill their health and wellness needs.
The Company’s digital platform offers access to a provider network, a clinically focused electronic medical record system, digital prescriptions and cloud pharmacy fulfillment. Its digital platform provides access to treatments for a range of conditions, including those related to sexual health, hair loss, dermatology, mental health and weight loss. The Company connects patients to licensed healthcare professionals who can prescribe medications when appropriate. In addition, the Company also offers access to a range of health and wellness products designed to meet individual needs, which includes curated prescription and non-prescription products. Its Hims & Hers mobile application enables consumers to access a range of educational programs, wellness content, community support and other services that promote lifelong health and wellness. |
Sharek’s Take |
 Hims & Hers (HIMS) has recently become a stock market leader after the company released news introducing a weight loss drug to compete with Eli Lilly’s Mounjaro weight loss drug. Hims & Hers’ drug is a Compounded Semoglutise as it is a compounded drug (customized medication) of Semaglutide, a glucagon-like peptide (GLP-1) injection that increases insulin levels in the body which decreases blood sugar (glucose). Since this is a compounded drug, it is not FDA regulated. Hims’ Compounded Semoglutise starts at $199 per month versus around $1000 per month out-of-pocket for Mounjaro.
Founded in 2017, Hims and Hers Health is an online platform that gives users access to treatments to conditions including sexual health, hair loss, skin care, mental health, and weight loss. The company connects patients to licensed healthcare professionals who prescribe medications on a subscription basis. Offerings generally focus on conditions that typically involve 30 day, 60 day, or up to 360 day prescriptions. Hims & Hers has a mobile app as well. Management touts its personalized solutions and meeting patient needs on an individual level. HIMS is making healthcare easier to access, and is thus disrupting the industry. It’s also a recurring revenue story. The company can gain new customers and also derive more revenue from existing patients. Hims & Hers had its IPO in 2019. The young company isn’t making much in terms of profits, thus the P/E is a super-high 152. But in terms of revenue, HIMS is doing around a $1 billion in sales and the market cap is slightly over $4 billion. 4x revenue isn’t bad in my opinion. Revenue has been: 2019 83 million; 2020 $149 million; 2021: $272 million; 2022 $527 million; 2023 $872 million. HIMS will be added to the Growth Portfolio today. |
One Year Chart |
| HIMS stock broke out on HIGH VOLUME last week after the company introduced its weight loss treatment. This gained investor attention as Eli Lilli’s Mounjaro is very hard to get at this time.
The Est. LTG is 114% which is excellent. The P/E of 152 is very high. Note the company just started making profits two quarters ago. I don’t have qtrly profit estimates. |
Earnings Table |
| Last qtr, HIMS delivered a profit of 5 cents per share versus a loss of 5 cents per share in the year-ago period. The math works out to 200% profit growth. Revenue jumped 46% year-over-year. Gross Margin was 82% versus 80% in the year ago period.
Subscribers increased 41% year-over-year to 1.7 million. Subscriptions jumped 176%. Management is leveraging affiliated pharmacies to drive efficiencies in logistics, raw ingredients, and customer support. Annual Profit Estimates are for profits this year and next year, but this is my first time following the stock so I don’t know if these figures have adjusted since last qtr. This company doesn’t have much analyst coverage, and I don’t possess Qtrly Profit Estimates. Management expects $297 million in revenue next quarter, which would be 43% growth. |
Fair Value |
| I think the stock should have a Fair Value P/E of 75. Since this company isn’t making much in terms of profits, the stock has a super-high P/E of 152. Thus, these projections show the stock to be overvalued.
But young up-and-coming companies often have high valuations. A high P/E is what kept me out of buying Yahoo as it was making its spectacular run higher in the late 1990s. |
Bottom Line |
| Hims & Hers (HIMS) stock went public through a Special Purpose Acquisition Acquisition Company (SPAC) in January 2021. The stock jumped in early 2021 then fell back down. This time, the monthly volume has been HUGE as the stock has skied higher. I think institutions are gobbling up shares.
HIMS has a unique business model that is very attractive. The company has a portfolio of solutions that continue to grow, and the subscription model is extremely attractive as it provides the company with recurring revenue. HIMS will be added to the Growth Portfolio and will rank 20th in the Power Rankings. The stock is a little speculative for the Aggressive Growth Portfolio. I may add it to this portfolio in the coming quarters |
Power Rankings |
Growth Stock Portfolio
N/AAggressive Growth Portfolio N/AConservative Stock Portfolio 20 of 34 |
