Hims & Hers Stock Is Soaring Again. But Should You Buy the Stock?

Core Viewpoint - Hims & Hers is successfully disrupting the U.S. healthcare market by selling affordable medications directly to consumers, aiming for $6.5 billion in revenue by 2030 [1][11]. Business Model - The company operates two platforms, Hims for men and Hers for women, focusing on various health issues including sexual health, dermatology, hair loss, mental health, and weight loss medications [3]. - By avoiding the insurance market, Hims & Hers offers products at lower prices, appealing to customers who prefer not to deal with health insurers [4]. Financial Performance - Hims & Hers is projected to reach over $2 billion in revenue by 2025, with weight loss medications contributing significantly to its growth [5]. - The company generated $200 million from weight loss products in 2024, which was part of its overall revenue of $1.4 billion [5]. - The gross profit margin stands at 77%, with potential for a net profit margin exceeding 20% on future revenues, translating to $1.5 billion in profits by 2030 [12]. Strategic Partnerships and Expansion - A partnership with Novo Nordisk allows Hims & Hers to sell Wegovy directly, enhancing its position in the obesity-care market [6]. - The acquisition of European competitor Zava will expand its telehealth services to Europe, adding 1.3 million active customers [8]. Customer Base and Market Potential - Currently, Hims & Hers has 2.4 million active customers, with significant growth potential in the U.S. market and through the Zava acquisition [11]. - The company aims to personalize healthcare further, including unique drug combinations and at-home testing capabilities [9]. Market Valuation - Hims & Hers has a market cap of $12.3 billion, which is approximately 8 times the estimated earnings of $1.5 billion for 2030, indicating a potentially undervalued stock for growth investors [14][15].