Hims & Hers Health, Inc. (HIMS)
Valuation Overview•Is Hims & Hers Health, Inc. Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Fragile underlying quality score of 37/100; weak margins or elevated debt leverage warrant caution.
Analysts remain cautious, with consensus price targets indicating limited room for upside expansion.
Verdict: Highly distressed profile flashing severe fundamental warning signs.
Wall Street is cautious, forecasting potential downside. However, capital return yields remain modest, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
HIMS struggles with subpar profitability and pressured margins. However, this is severely offset by a highly leveraged balance sheet (Debt/EBITDA > 4.0x) and elevated financial risk.
The company is driving exceptional top-line expansion (64.5% 3Y CAGR) paired with stable bottom-line earnings. However, profitability remains a major concern with severely compressed operating margins (1.3%).
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $608.1M | +59.0% | +64.5% | +73.6% | — | |
| EBITDA | $5.5M | — | — | — | — | |
| Net Income | -$92.1M | +1.8% | — | — | — | |
| EPS (Diluted) | $-0.40 | -3.8% | — | — | — | |
| Free Cash Flow | $53.0M | -62.7% | — | — | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 67.6% | 78.4% | 77.6% | 73.7% |
| Operating Margin | 1.3% | 1.8% | -10.0% | -21.5% |
| Net Margin | -0.6% | 3.8% | -8.2% | -20.0% |
| FCF Margin | 3.2% | 7.3% | 0.2% | -13.8% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $0.03 | $-0.40 | -1676.7% | ||
| Q1'26 | $0.02 | $0.07 | +250.0% | ||
| Q4'25 | $0.09 | $0.06 | -33.3% | ||
| Q3'25 | $0.18 | $0.17 | -5.6% | ||
| Q2'25 | $0.12 | $0.20 | +65.4% | ||
| Q1'25 | $0.09 | $0.11 | +22.2% | ||
| Q4'24 | $0.06 | $0.06 | +0.0% | ||
| Q3'24 | $0.04 | $0.06 | +40.4% |
Total return is -41.9% (1Y), lagging the benchmark by -66.9%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +6.2% | -3.1% | — |
| 1Y | -41.9% | -66.9% | — |
| 3YCAGR | +62.0% | +36.8% | — |
| 5YCAGR | +26.2% | +9.9% | — |
| 10YCAGR | +13.7% | -1.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Hims & Hers Health, Inc. (HIMS) valuation, health, and returns.
Hims & Hers Health, Inc. is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -48.9% downside from DCF intrinsic value of $18.12)
Hims & Hers Health, Inc. has multiple valuation anchors: DCF Intrinsic Value: $18.12 | Peer Relative Fair Value: $5.80 | Wall Street Analyst Target: $28.08 (implying -20.8% upside). A convergence of these signals offers higher conviction.
Hims & Hers Health, Inc. displays weak financial health with a composite quality score of 37/100, supported by a Altman Z-Score of 3.6 (safe zone), Piotroski F-Score of 4/9, Return on Invested Capital (ROIC) of 8.6%.
Hims & Hers Health, Inc. returns capital via buybacks instead of dividends, carrying a 1.2% buyback yield and reducing outstanding shares by +9.0% in the last 12 months.
Hims & Hers Health, Inc.'s current growth trajectory is Decelerating. The company achieved +59.0% 1Y revenue growth and -3.8% 1Y EPS growth, compared to its 3Y revenue CAGR of +64.5%.
Wall Street consensus is Hold based on 20 analysts, beating EPS expectations in 58% of recent quarters with a -1-quarter streak. The consensus price target represents a -20.8% change from current levels.
Investment risks for Hims & Hers Health, Inc. include: -78.1% 1-year max drawdown, high beta (2.56x market volatility). Volatility risk is characterized by a beta of 2.56x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.