Where is HIMS set to go next?

Overview of Hims & Hers Health (NYSE: HIMS):


Pros

Expanding into weight-loss treatments

-Hims successfully entered the high-demand GLP‑1 weight-loss space by selling compounded semaglutide during shortages. With branded Wegovy now available on their platform in partnership with Novo Nordisk, they’ve broadened their offering.

Solid growth & rising profitability

-Revenue surged ~18% in 2024 to $1.78 b ttm, with annual net income of $164 m.
-Q1 2025 reported >100% YoY revenue growth ($586 m) with expected profit of 20¢/share.

Strong gross margins

-At around 80–88%, comparable to peer telehealth platforms.

Diverse healthcare offerings

-Beyond weight loss: sexual health, skincare, hair loss, mental health via DTC model. Expanded further via European acquisition of ZAVA (~1.3 m subscribers).

Undervalued relative to future earnings

-Analysts project 2030 revenues of $6.5 b—implying mid‑20s% CAGR. With projected EPS ~$1.5 b, current multiples (P/E ~40x) might look reasonable long term.


Cons

GLP‑1 strategy under pressure

-The end of compounding allowances by FDA reduced their low-cost advantage.
-Dependence on cash-pay vs. insurer coverage may limit growth if insurers cap co-pays.

High valuation with risk

-Trading at ~84x trailing EPS and ~70x forward EPS—wide margin for missteps.
-Analysts average target at $38 (≈ 33% downside), 12 rate it a 'Hold'.

Competitive & regulatory headwinds

-Market crowded with telehealth players like Ro, Noom, CVS, and insurers which may undercut cash-pay model.
-Legal scrutiny over “personalized” compounded products persists; Novo lawsuits underway.

Reputation & controversy

-CEO’s political donation stirred backlash; regulatory scrutiny around ads and compounding practices.
-Platform has faced occasional service and customer trust issues.

-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.