Last Updated: 14 Sep 2024
Executive Summary
Hims & Hers Health Inc. (HIMS) is a telehealth platform connecting consumers with licensed healthcare professionals. The company's latest stock price is $16.57, indicating a potential upside based on analyst target prices. However, its high valuation and low profitability raise concerns that should be considered before investing.
Company Overview
Hims & Hers offers a range of telehealth services, including dermatology, primary care, mental health, and sexual health. The company has a strong focus on digital health and has developed a proprietary platform that allows patients to consult with healthcare providers remotely.
Fundamental Analysis
Revenue: HIMS reported revenue of $1.07 billion in the trailing twelve months, representing a 51.8% year-over-year growth.
Profitability: The company's profitability is low, with a profit margin of only 1.7% and an operating margin of 3.49%.
Valuation: HIMS is currently trading at a trailing P/E ratio of 197.75 and a forward P/E ratio of 37.74, indicating a high valuation relative to its earnings.
Technical Analysis
Moving Averages: The stock is currently trading above its 50-day moving average of $18.00 but below its 200-day moving average of $14.44.
Support and Resistance: The stock has support at around $15.00 and resistance at around $18.00.
Short Term Outlook
In the short term, HIMS may face headwinds due to its high valuation and low profitability. The stock could experience volatility as investors assess the company's ability to improve its margins and justify its current valuation.
Long Term Outlook
The long-term outlook for HIMS depends on its ability to execute its growth strategy and improve its profitability. The company's focus on digital health and its strong brand recognition could provide a competitive advantage in the growing telehealth market.
Analyst Recommendations
Analysts have mixed views on HIMS. Two analysts rate the stock as a "Strong Buy," three as a "Buy," eight as a "Hold," and none as a "Sell" or "Strong Sell." The consensus analyst target price is $22.21, implying a potential upside of approximately 34%.
