Hims & Hers Health (NYSE:HIMS) stock might surge. However, there’s significant risk. HIMS stock has soared 163% this year, partly driven by its offering of compounded weight loss medications as an affordable alternative amid shortages of Novo Nordisk’s obesity drugs. The stock gained additional momentum following its purchase of Trybe Labs, a move that will integrate at-home testing services into its platform, allowing for more customized healthcare solutions.
But where does HIMS stock stand now after its large rally? We think HIMS stock looks attractive but volatile – making it a tricky pick to buy at its current price of around $66. We believe there is minimal cause for concern with HIMS stock, which makes it attractive but highly sensitive to adverse events as its current valuation is extremely high.
We arrive at our conclusion by comparing the current valuation of HIMS stock with its operating performance over the recent years as well as its current and historical financial condition. Our analysis of Hims & Hers Health along key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience shows that the company has a very strong operating performance and financial condition, as detailed below.
How does Hims & Hers Health’s valuation look vs. the S&P 500?
Going by what you pay per dollar of sales or profit, HIMS stock looks very expensive compared to the broader market.
• Hims & Hers Health has a price-to-sales (P/S) ratio of 6.5 vs. a figure of 3.1 for the S&P 500
• Additionally, the company’s price-to-operating income (P/EBIT) ratio is 188.2 compared to 24.4 for S&P 500
• And, it has a price-to-earnings (P/E) ratio of 43.3 vs. the benchmark’s 24.4
How have Hims & Hers Health’s revenues grown over recent years?
Hims & Hers Health’s Revenues have grown considerably over recent years.
• Hims & Hers Health has seen its top line grow at an average rate of 80.7% over the last 3 years (vs. 9.8% for S&P 500)
• Its revenues have grown 56.7% from $793 Mil to $1.2 Bil in the last 12 months (vs. change of 5.6% for S&P 500)
• Also, its quarterly revenues grew 77.1% to $402 Mil in the most recent quarter from $227 Mil a year ago (vs. 7.2% change for S&P 500)
How profitable is Hims & Hers Health?
Hims & Hers Health’s profit margins are worse than most companies in the Trefis coverage universe.
• Hims & Hers Health’s Operating Income over the last four quarters was $43 Mil, which represents a poor Operating Margin of 3.5% (vs. 12.6% for S&P 500)
• Hims & Hers Health’s Operating Cash Flow (OCF) over this period was $187 Mil, pointing to a moderate OCF-to-Sales Ratio of 15.0% (vs. 14.4% for S&P 500)
Does Hims & Hers Health look financially stable?
Hims & Hers Health’s balance sheet looks very strong.
• Hims & Hers Health’s Debt figure was $11 Mil at the end of the most recent quarter, while its market capitalization is $14 Bil (as of 2/20/2025). This implies a very strong Debt-to-Equity Ratio of 0.1% (vs. 19.7% for S&P 500). [Note: A lower Debt-to-Equity Ratio is desirable]
• Cash (including cash equivalents) makes up $254 Mil of the $602 Mil in Total Assets for Hims & Hers Health. This yields a very strong Cash-to-Assets Ratio of 42.2% (vs. 14.1% for S&P 500)
How resilient is HIMS stock during a downturn?
HIMS stock has seen an impact that was slightly better than the benchmark S&P 500 index during the Covid recession. While investors have their fingers crossed for a soft landing by the U.S. economy, how bad can things get if there is another recession? Our dashboard How Low Can Stocks Go During A Market Crash captures how key stocks fared during and after the last six market crashes.
COVID Recession (February to April 2020)
• HIMS stock fell 7.4% from a high of $10.15 on 13 February 2020 to $9.40 on 23 March 2020, vs. a peak-to-trough decline of 33.9% for the S&P 500
• The stock is yet to recover to its pre-Covid high although the S&P 500 regained lost ground in 148 days
Putting all the pieces together: What it means for HIMS stock
In summary, Hims & Hers Health’s performance across the parameters detailed above are as follows:
• Growth: Extremely Strong
• Profitability: Weak
• Financial Stability: Extremely Strong
• Downturn Resilience: Neutral
• Overall: Very Strong
Hence, despite its extremely high valuation, the stock appears attractive but volatile, which supports our conclusion that HIMS is a tricky stock to buy. Our take on Buy, Sell, Or Hold HIMS Stock At $60? has more details.
Not too happy about the volatile nature of HIMS stock? The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
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