Should you buy Hims and Hers stock? (May 2024)

Hims and Hers stock analysis. Ticker: $HIMS

Telehealth company HIMS reported earnings last week and the stock jumped 17%. But shares have fallen back taking the company’s market cap to 2.8 billion.

Revenue over the last 12 months has grown 56% to 959 million with 76 million of adjusted ebitda and 52 million of free cash flow. Net income is negative 2 million but that shouldn’t be a problem as the company scales.

In fact, as a platform business HIMS is capable of strong operating leverage. So when you consider how much the company could be earning in a few years time the stock looks pretty cheap. For example, assume revenue doubles over the next couple of years and adjusted ebitda could swing higher to as much as $380 million. Apply a conservative 15 times multiple to that figure and the market cap gets to 5.7 billion, which is roughly double the current level.

In other words, HIMS stock has clear upside if it continues its current trajectory. The question is why the stock isn’t doing better than it is.

The main answer is that investors don’t seem to trust the business. HIMS makes a substantial portion of its revenue from selling pills online for erectile dysfunction.

There’s a certain stigma attached to these pills but they also face competition from over the counter products. And it’s not yet clear whether HIMS can successfully expand to more mainstream treatments.

#himsstock #investing #stockmarket #3mb

[lintmaieralexandru]

I want to congratulate you on the analyses you do; I think you are one of the best YouTubers who talks about the stock market. I would like to know your opinion on General Motors (GM) and Opera Limited (OPRA); they seem to me to be among the best companies on the NYSE and Nasdaq.

[Ann-]

In your opinion, what price can I buy it? Thanks

[kezhere]

Could you do transmedics next chief? Its high growth, big market to expand to, interesting technology. Its an organ transplant transportation technology.

[seanhettich]

This stock is dog shit. Way overpriced. Low barrier to entry on competition. Not profitable. HUGE bubble. Get out.