Stock (Symbol) |
Hims & Hers Health (HIMS) |
Stock Price |
$17 |
Sector |
| Healthcare |
Data is as of |
| October 3, 2024 |
Expected to Report |
| November 4 |
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) continues to grow rapidly as profits jumped 300% last qtr on a 52% increase in revenue. Revenue growth accelerated from 46% last qtr, that’s a very good sign. Subscribers grew by 43%, reaching 1.9 million users. Its weight loss services — particularly personalized GLP-1 treatments — became the fastest-growing segment. But competitor Eli Lilly’s obesity drug was having issues manufacturing enough Mounjaro to fill prescriptions, and that might have pushed users to utilize Hims & Hers. Then last week, the Food & Drug Administration (FDA) stated the shotage of tiezepatide has been resolved. HIMS benefited from the shortage as its legal to produce compounded drugs that are similar to FDA approved drugs if they are on the FDA shortage list. Thus, there is risk the FDA might not allow HIMS to continue selling its Compounded Semaglutide weight loss drug.
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 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. Hims & Hers 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. The young company isn’t making much in terms of profits, thus the P/E is 66. 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 is part of the Growth Portfolio. |
One Year Chart |
 HIMS stock has been on a wild ride since my past report. Today, 10/9, the stock is $19 as it was added to the S&P Smallcap 600 today. Note the charts & tables in this report are from 10/3 when the stock was $17. The current chart pattern looks good, but my expectations are lower than they were last qtr due ot higher regulations.
The Est. LTG is 95% which is excellent. The P/E of 77 is very high, but I think its ok as this is a rapidaly growing company. NoteHIMS just started making profits three quarters ago, so these triple-digit figures are versus losses in the year-ago period, making comparisons easy. |
Earnings Table |
 Last qtr, HIMS delivered a profit of 6 cents per share versus a loss of 3 cents per share in the year-ago period. The math works out to 300% profit growth. Revenue jumped 52% year-over-year. Gross Margin was 81% versus 82% in the year ago period.
Subscribers increased 43% year-over-year to 1.9 million. The primary driver of growth continues to be the expansion of its subsriber base. Annual Profit Estimates increased for this year and next. Quarterly profit Estimates are for profits of $0.04 a share next qtr, which is below the $0.06 cents the company just earned. After that, qtrly profits are expected to hit record highs with $0.07, $0.08, and $0.11 in earnings per share the following quarters. Revenue is expected to climb 67% next qtr. That would be continued acceleration. |
Fair Value |
 I think the stock should have a P/E of 75. Revenue is growing around 40% to 50% a quarter, and the company’s slight profits are climbing rapidly.
This quarter, the stock has a P/E of 78, so I think HIMS is around its Fair Value, with exceptional upside when we look out to next year. |
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.
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. But there’s FDA could cause the company to discontinue selling its weight loss drug. Also, these shares have been volatile. HIMS slides from 20th to 24th the Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
24 of 32Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
