HIMS Has Been a Roller Coaster Ride. Should Investors Hop On?

Core Insights - The healthcare sector is primarily dominated by major pharmaceutical companies, but Hims & Hers Health is emerging as a notable growth opportunity for investors [2] - Hims & Hers Health achieved its first year of profitability in 2024, reporting a net income of $126 million, showcasing financial discipline uncommon in companies shortly after their IPOs [3] - The company has demonstrated strong debt management, with a 244% increase in net cash from operating activities from 2023 to 2024 [4] Financial Performance - In Q3, Hims & Hers Health reported revenue of $598.98 million, a 49.2% year-over-year increase, while missing earnings by just 3 cents [4] - The company experienced a 50% year-over-year growth in subscribers using personalized solutions, contributing to revenue growth [5] - Hims & Hers Health's debt-to-equity ratio stands at 1.67, with a forward price-to-earnings (P/E) ratio of 52.79, indicating expected earnings growth of over 79% next year [5] Growth Metrics - Since 2021, Hims & Hers Health has averaged annual EBITDA growth of 37.14%, revenue growth of 77.85%, and EPS growth of 169.63% [6] - The company's shares have increased by 173% and 146% this year, despite experiencing significant corrections after price surges [7] - Analysts project an average 12-month price target nearly 25% higher than the current trading price of the stock [7]