HIMS Hims & Hers Health Inc

Hims & Hers Health operates a multi-specialty telehealth platform offering consultations and subscription treatments for hair loss, sexual health, mental health, and skincare. Sector: Healthcare.

Hims & Hers Health Inc (HIMS) is an individual stock. The analysis below presents key financial metrics for the company, covering profitability, capital efficiency, valuation, margins, and growth.

Assessing the quality of returns on invested capital, ROIC is 11.29%, WACC is 13.91%, and the economic spread is -2.62%. On balance, the company is not clearing their capital cost hurdle, meaning reinvestment may be diluting rather than compounding value. Supporting metrics show ROE at 24.45% and ROA at 6.72%, a combination that helps frame whether profitability strength is broad enough to hold through different market conditions. Taken together, the return profile suggests a company that likely needs operating improvement before returns quality can be considered durable.

The market currently prices the company at trailing P/E of 37.45, forward P/E of 35.36. The gap between P/E and forward P/E is small, suggesting the valuation is not contingent on a near-term earnings step-change. The current ratio of 1.90 is in an acceptable range, reflecting reasonable short-term financial health. Valuation and liquidity together frame a company where the price paid today is a reasonable bet on earnings delivery — but not a margin-of-safety purchase at current levels.

Looking at margins from gross to free cash flow, gross margin sits at 73.84%, operating margin at 4.83%, and free cash flow margin at 2.80%. The gross margin here is a standout, pointing to businesses with durable unit economics and limited commodity exposure. Near-zero or negative operating margins point to the company where growth investment is currently prioritized over near-term profitability. The company's cash conversion is poor at this level — a sign of capital-intensive or loss-making businesses across much of the company. Margins indicate a company that is operating effectively in some areas while still showing efficiency gaps in others.

Projected 12-month EPS growth of 5.9% is a constructive signal — measured earnings expansion supports the forward valuation case without relying on aggressive extrapolation. Turning to growth and analyst expectations, TTM revenue growth of 28.41% pointing to sustained and broad-based revenue growth within the company, while the estimated 12-month price change of 52.99%, where analyst targets indicate a strong re-rating opportunity from current prices. The distinction matters: revenue growth tells you what the company are doing, price targets tell you what analysts think the market will pay for it. Ultimately, the alignment between revenue momentum and analyst targets will depend on execution quality and the broader rate and sentiment environment. The estimated 12-month price change is based on analyst consensus price target estimates, sourced from publicly available data, and should not be interpreted as a reliable prediction of future performance.

Taken together, the metrics present a favorable setup — not without risk, but with enough quality and momentum to support a positive view.

The analysis above draws from quantitative data only and does not constitute personalized financial advice. Investors should conduct independent research and consider professional guidance before acting on any information presented here.