Hims & Hers Health Inc. Class A Common Stock (HIMS)

FairStock Score: 27/100 — RISKY

Key Financials

Strengths

• Generates $111 million in annual free cash flow (1.7% yield on market cap)
• Strong Piotroski F-Score of 7/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• High return on equity of 25.2% demonstrating efficient capital deployment
• Revenue growth of 28.4% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($5) with negative 444% margin of safety—limited downside protection
• High leverage at 2.07x debt-to-equity increases financial risk and interest expense burden

AI Analysis

Hims & Hers Health Inc. Class A Common Stock is a small-cap healthcare company valued at $6.5 billion. The business generates $2.3 billion in annual revenue with a 0.9% net margin and $111 million in free cash flow. From a quality standpoint, Hims shows solid Piotroski F-Score of 7/9 and Altman Z-Score of 2.8 in the grey zone. On valuation, the stock is commanding a steep 55.2x multiple, with trades far above its Graham Number ($5) with no margin of safety. Growth dynamics show revenue growing at 28.4% and profit growth of -20.8%. Our composite FairStock Score of 27/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Hims's 28% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $111 million in annual free cash flow (1.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 55x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer