30 Sep Hims Stock: Investing in Telehealth’s Future
Did you know Hims & Hers Health (HIMS) stock fell more than 30% in the past three months? Yet, the company still boasts around 1.9 million subscribers. It also made $315.6 million in revenue by June 30, up 52% from last year1. As telehealth grows, investing in firms like Hims could be very rewarding.
Key Takeaways
- Hims & Hers Health (HIMS) has seen a stock price drop exceeding 30% in the last three months1.
- The company boasts approximately 1.9 million subscribers1.
- Revenue for the period ending June 30 increased by 52% to $315.6 million compared to the prior-year quarter1.
- The stock’s forward price-to-earnings ratio is 32, higher than the average healthcare stock1.
- Analysts have set a consensus price target of just over $20, indicating a potential upside of over 45%1.
Overview of Hims & Hers Health Inc.
Hims & Hers Health Inc. stands out in the telehealth market. Since 2013, it has grown quickly, catering to healthcare needs online2. The company focuses on products and services for sensitive health issues. This approach meets customers’ desire for privacy2.
Company Background
Based in San Francisco, Hims & Hers started with wellness and hair loss products2. Now, it includes skincare, sexual wellness, and oral care items2. A major step was partnering with Kristen Bell in January 2023 to boost mental health efforts3.
The transition to a public company happened in January 2021, leading to a $1.6 billion valuation3. It raised $100 million in Series C funding, reaching a $1 billion valuation3.
Telehealth Industry Impact
Telehealth services have skyrocketed, and Hims & Hers is a key player2. The market is growing fast, thanks to tech advances and consumer demand. The company offers various telehealth services2.
Its digital health focus taps into a booming market, expected to surge by 20284. New products, like the GLP-1 injections coming in May 2024, are boosting its market presence3.
Hims & Hers Health Inc. is financially strong, with a $3.8 billion market cap2. With $872 million in revenue for 2023, its growth is solid. The stock’s 184.32% rise over the past year shows strong investor trust4.
Understanding Hims Stock
Exploring Hims stock, consider the market trends and how investors view this telehealth firm.
Market Performance
Hims & Hers Health stock had a tough year, dropping about 35% from its top earlier this year5. Still, the stock has climbed over 85% since the year began5. This shows big growth overall.
The revenue growth was amazing, with a 94% boost in 2022 and a 65% increase in 20235. The first and second quarters of 2024 showed gains of 46% and 52%5. These numbers highlight the company’s steady growth.
Recently, Adjusted EBITDA jumped 270% from one year to the next, going from $10.6 million to $39.3 million5. Net income also improved, turning from a $7.2 million loss to a $13.3 million gain5.
Investor Sentiment
Views on Hims stock mix hope with caution. The stock’s wide price range shows it’s quite volatile6. With a forward P/E ratio under 21 times next year’s forecasts, its valuation looks good due to its 80% gross margin and recurring revenue model5.
The company is valued at $3.846 billion, and 5,155,069 shares have been traded, showing strong interest6. Still, with a high PE ratio and just 0.08 EPS (TTM), investors remain cautiously hopeful6.
Yet, analysts believe in the stock’s promise, especially as Hims enters new health markets like weight loss drugs, which could reach $100 million in sales by Q25. They set a one-year target of $21.93 for Hims stock6
The Growth Potential of Telehealth
The growth of telehealth shows a huge chance for the healthcare world. Companies such as Hims & Hers lead the way, using digital healthcare innovation. They make health services easy to get and private. The telehealth market is expected to keep growing strong. It’s based on numbers like the 47.4% jump in yearly revenue to $246.6 million. And the net income hit $1.2 million in Q4 of 20237.
Hims & Hers might make more than $1 billion in 2024. This shows the big potential of the market7. More people are using telehealth services. This increases the market’s potential and could lead to big profits. The money put into these companies tripled during the pandemic. It shows strong belief in the future of digital healthcare innovation8.
If you’re thinking about telehealth stocks, the signs are good. For example, the value of Hims & Hers Health’s stock went from $6 to $26 during the pandemic8. Also, their number of users grew by 48% to 1.5 million in a year. This shows the business is growing fast thanks to more people using it. These points make the telehealth market forecast look very promising.
It’s not just Hims & Hers seeing big growth. Teledoc Health’s stock also jumped from about $80 to $288.80 during the pandemic8. This trend across the industry supports the idea that telehealth will keep growing. Hims & Hers might make between $1.17 billion and $1.20 billion in 2024. They expect to have an adjusted EBITDA between $100 million and $120 million7.
In summary, Hims & Hers is meeting its targets in the telehealth market with steady money and user growth. Along with ongoing innovation, this makes the sector attractive to investors. The strong results and positive view from investors show how much telehealth is changing healthcare.
Recent Financial Performance of Hims & Hers
Hims & Hers has shown strong financial results. These results show its strong place in the market and good growth strategies.
Q3 Revenue Highlights
The company’s revenue went up by 52% from one year to the next. It increased from $207.9 million in Q2 2023 to $315.6 million in Q2 20249. This big growth shows Hims & Hers’ successful approach9. The company now expects its full-year 2024 revenue to be between $1.37 billion and $1.40 billion10.
Subscriber Growth
Along with financial gains, Hims & Hers saw its subscriber count jump by 43%. By Q2 2024, there were 1.9 million subscribers10. This shows the company’s skill in getting and keeping customers quickly10.
The increase in subscribers shows the company’s strong position and creative tactics in telehealth. This not only drives strong revenue growth but also supports long-term success.
| Metric | Q2 2023 | Q2 2024 |
|---|---|---|
| Revenue | $207.9 million | $315.6 million |
| Net Income | $(7.2) million | $13.3 million |
| Adjusted EBITDA | $10.6 million | $39.3 million |
| Free Cash Flow | $10.0 million | $47.6 million |
| Subscriber Base | 1.3 million | 1.9 million |
The financial success and subscriber growth make Hims & Hers a top figure in telehealth. It has improved a lot over the year11910. For investors interested in telehealth’s rise, Hims & Hers’ recent performance is very promising11910.
Key Drivers Behind Hims Stock
Getting to know the key factors driving Hims stock is vital for smart investors. Leading the way in these factors is the company’s amazing growth in customer numbers. They saw a 43% increase in Q2, reaching 1.9 million users12. This shows more people are choosing Hims & Hers’ healthcare solutions.
Revenue growth is another important driver for Hims & Hers. They made $315 million in Q2, up 52% from last year12. Their new weight loss products are doing well too, bringing in $100 million a year12 and boosting their finances.
The company is also making moves into new healthcare areas like diabetes care and pain management. This expansion gives investors hope for Hims & Hers’ future. Plus, their weight loss treatments are becoming popular, helping with revenue and customer growth.
Hims & Hers’ stock is doing well in the market. On September 10, 2024, their stock reached $14.53, up 4.01%13. This suggests the market believes in their potential, trading at 28 times their estimated 2024 earnings12.
The decision to buy back $100 million of their own shares12 shows Hims & Hers is confident in their financial health. It’s a smart move to encourage more growth.
Also, their strong push into weight loss treatments and rising subscription numbers make a compelling case for investors. This approach highlights why investing in healthcare stocks like theirs can be very rewarding.
The factors driving Hims stock are not just varied but deeply influential. They provide growth investors with a full view of where Hims & Hers is heading. This shows the big potential in the healthcare market.
For more insights on how these factors can enhance your portfolio, check out profiting from high-frequency taps.
Challenges and Risks Associated with Hims Stock
Investing in Hims & Hers Health Inc. comes with its own set of risks. These include changes in the stock market, healthcare laws, and overall investment hurdles. Despite a rise in stock prices from last year, there’s been a significant drop since its peak in June14. Understanding these risks means looking at market shifts and regulatory challenges closely.
Market Volatility
For those investing in Hims & Hers, market volatility is a big worry. The stock has seen a more than 30% drop in the past few months15. This highlights the unpredictable nature of investing in stocks.
Even with a 52% revenue increase in a recent quarter14, competition, like Amazon, makes the market tough. The stock’s current price is 17 times next year’s earnings, with some expecting earnings to hit $0.80 per share14. This shows the uncertain future and the debate on whether it’s worth the risk14.
Regulatory Risks
Changing healthcare laws pose big challenges for Hims & Hers. Their move into the weight loss market, with specific treatments, might draw legal attention. The stock is valued at 21 times the earnings expected next year5. This indicates the risk if laws become stricter.
The telehealth sector must constantly adjust to new healthcare rules. Any delay in following these rules can slow down growth, even though EBITDA went up by 270% in a year5. This highlights how tough it is to keep up with healthcare laws.
Is Hims Stock a Good Buy? Expert Opinions
Opinions on Hims stock vary among experts. Many praise its consistent growth score of A and strong value. Currently priced at $17.77 USD, with a slight increase after-hours, Hims is stable in a tough market16.
Hims & Hers ranks well in the Medical Info Systems sector, sitting 75th out of 251. This makes it appealing to those thinking of investing in Hims stock16. However, its cash/price ratio is low at 0.06, showing less liquidity than others, who range from 0.07 to 0.2716.
The stock’s growth is impressive, marked by an A for momentum score. Despite this, its EV/EBITDA ratio is -202.31, far from peers like AZTA at -0.6716. This suggests that the stock’s current price is based largely on future earnings expectations17.
To make a smart decision about Hims, consider the expert views and risks. It’s rated as a 3-Hold by Zacks, urging caution16. Despite this warning, Hims’ growth and value scores are impressive.
When thinking about buying Hims stock, look at its industry position. It holds a C grade, equal to AZTA but better than INSP and TXG, which are rated F and D16. This indicates Hims is doing well but has potential to grow.
Hims could see long-term growth with the right strategy and by dealing with liquidity issues. With thorough expert stock analysis and healthcare investment advice, investing in Hims could match your financial goals.
Comparison with Other Telehealth Stocks
To really get the big picture, let’s look at Hims & Hers Health Inc. (NYSE:HIMS) among its telehealth rivals. Given the telehealth market’s worth at $128.12 billion in 2022 and its expected rise to $504.24 billion by 2030, at a CAGR of 19.7%18, the growth outlook appears extensive.
Evaluating telehealth stocks? Pay attention to the key figures. For example, Teladoc Health (NYSE:TDOC) saw revenues of $660.2 million but its shares fell by 24.5%18 year-to-date. Additionally, its EBITDA leaped by 204% to $13.8 million, despite a 22.3% increase in net income losses, finishing at $57.1 million18. Meanwhile, American Well (NYSE:AMWL) earned $61.9 million in revenue but encountered around a 58% return loss18.
On the flip side, Hims & Hers Health showed a remarkable 57% jump in revenue to $226.7 million and expanded its subscriber count to 1.4 million18, despite a 28% year-to-date drop. Contrary, Doximity (NYSE:DOCS) experienced a 25% year-to-date decline but anticipated a 25% increase in annual revenue18.
Now, look at CVS Health Corp (NYSE:CVS). It gained an 11% revenue boost in Q1 2023, hitting $85.3 billion18. By focusing on virtual care and telepsychiatry, and teaming up with companies like Carbon Health, CVS is making a strong statement in the market18.
This table simplifies the comparison, showing where these telehealth leaders stand financially. For a deeper dive into telehealth investment strategies, don’t miss this guide on advanced faucet strategies for more.
| Company | Year-to-Date Loss | Revenue | Growth |
|---|---|---|---|
| Teladoc Health (TDOC) | 24.5% | $660.2 million | 204% EBITDA increase |
| American Well (AMWL) | 58% | $61.9 million | Improved adjusted EBITDA |
| Hims & Hers Health (HIMS) | 28% | $226.7 million | 57% YoY increase |
| Doximity (DOCS) | 25% | N/A | Projected 25% YoY increase |
| CVS Health Corp (CVS) | N/A | $85.3 billion (Q1 2023) | 11% (Q1 2023) |
The Role of AI in Hims & Hers’ Strategy
Hims & Hers Health Inc. has smartly used AI in telehealth to improve patient care and healthcare workflows. Their MedMatch AI service is especially notable.
MedMatch uses lots of data from Hims & Hers’ healthcare system for personalized treatments. Initially, the MedMatch AI service aimed at mental health care. It plans to cover more areas, ensuring treatments for various health needs19.
MedMatch AI-Based Service
Hims & Hers now serves nearly 2 million people, doubling its users in two years20. Also, 42% of these users get personalized care, showing more people trust AI in healthcare20.
MedMatch’s AI in telehealth gives quick insights and specific medication ideas. This is possible through anonymous data from over 600 providers across the U.S19..
Technological Innovations
Their own EMR system supports online healthcare well, showing their commitment to healthcare technology innovation. Thanks to AI, their revenue grew 57% to $226.7 million in just the third quarter21.
AI in telehealth leads to better operations and outcomes for patients. About 80% of prescriptions are filled by their own pharmacies. This means fast and quality care for everyone19.
The aim is to get MedMatch perfect for mental health before expanding it. As technology grows, MedMatch proves Hims & Hers’ role in leading healthcare technology innovation.
Investment Strategies for Hims Stock
Exploring investment strategies for Hims stock means looking into short and long-term possibilities. A key approach is to watch the company’s financial health. For example, Hims & Hers Health’s revenue hit $872 million in 2023. That’s a 65% jump from the previous year22. They also see 2024 as potentially the first profitable full year22.
Finding the right time to buy is crucial. In September 2024, the stock was at $17.77. That’s an increase of 185.69% in just a year23. With a $3.86 billion market value and a P/E ratio of 222.13x, compare these figures to others in the business23. Also, consider how telehealth trends could affect Hims.
The company’s subscriber count reached 1.7 million early in 2024. This is a 41% rise from the last year22. By the end of 2023, they also reported their first profitable quarter with $1.2 million in net income22. These achievements signal strong growth in telehealth.
Investing in stocks like Hims requires balancing daring goals with your risk level. Their operational cash flow hit $73.5 million over 12 months, and their free cash flow reached $47 million in 202322. But, the stock’s high value comes with risks. Consider this in your investment plans.
Looking at Hims & Hers’ specific areas can diversify your investment. They aim for $100 million in revenue across key services by 202522. This goal suggests lots of growth potential in areas like mental health and more.
Long-term Growth Prospects
Hims & Hers Health is expanding into new areas like obesity and fertility treatments. They’re doing this to grow their business in the coming years. By adding these services, they aim to get better financially and keep making more money.
Expansion into New Verticals
Entering new healthcare areas is key for Hims & Hers. They want to offer more than just telehealth by covering things like diabetes and weight loss. They’re expected to grow their revenue by 23.8% each year, way more than the U.S. market’s 8.7%24. This growth shows they could expand their business a lot in the future. Also, their earnings per share should increase by 37.7% yearly, meaning they’ll likely do well financially24.
Weight Loss and Cardiovascular Care
There’s a big demand for weight loss and heart care services. Hims & Hers is adding these to serve more people’s health needs. They could make $2.284 million in revenue and $134 million in earnings by 202624. Their return on equity could hit 25.1% in three years, showing they’re on track for profitable growth24. Adding these healthcare areas makes Hims & Hers a strong industry player, helping them grow and succeed long-term.
To learn more about Hims & Hers’ strategies and future, check out more on their prospects2524.
Short-term Performance Insights
Looking at Hims & Hers Health, Inc. (NYSE:HIMS), we see a mix of promise and challenge. In the past month, the company’s shares fell by 27%. Yet, they have jumped by 122% over the last year26. This shows us volatility in the short term but hope for the future.
Hims & Hers Health’s price-to-sales (P/S) ratio is 3.2x. This is much higher than many rivals in the U.S. Healthcare sector26. This could mean it’s overvalued or it could mean investors believe in its growth.
Revenue for Hims & Hers Health has grown by 50% over the past year26. Analysts see this trend continuing, with a 33% annual growth rate expected for the next three years26. This far exceeds the industry average, showing Hims & Hers Health is on a strong path.
The high P/S ratio implies the market expects Hims & Hers Health to keep doing well26. But, high hopes bring risks. Despite possible overvaluation, shareholders are still optimistic about the future26.
For short-term investors, it’s crucial to balance growth prospects with the recent stock price changes26. The detailed stock analysis suggests a smart approach is best, recognizing both the revenue upsides and the need for caution.
Evaluating the Fair Value of Hims Stock
When looking into Hims & Hers Health Inc. stock, the price-to-sales ratio (P/S ratio) is crucial. Hims & Hers’ P/S ratio is 3.6x, above the 1.2x industry average for U.S. healthcare companies27. This suggests the stock might seem costly compared to others. However, its strong growth and market potential may justify the higher price.
Price-to-Sales Ratio
Comparing the P/S ratio with other companies gives us insights. Companies like Guardant Health have a ratio of 4.4x, and LifeStance Health Group is at 2.3x. Hims & Hers stands at 3.6x27. This higher ratio matches its impressive revenue growth, which is up 52% from last year28. Learn more about these numbers here.
Analyst Price Targets
Analysts set a one-year price target for Hims & Hers at $21.93. This suggests a potential 23.4% increase from its current price27. Price target ranges show optimism and caution, from $30.00 to $16.1628. This variety reflects differing views on the stock’s potential.
The positive outlook for the stock considers factors like EBITDA growth and more subscribers28. Expected revenue between $1.37 billion and $1.4 billion by 2024 indicates a strong future28.