Hims & Hers Health, Inc. (HIMS): A Bull Case Theory

One standout growth engine is the oral weight loss product, which posted 300% YoY growth, confirming that HIMS is far more than just a GLP-1 story. With nearly 100 million Americans struggling with obesity, the total addressable market here is massive—and HIMS’s lower-cost oral solution (about two-thirds the price of branded GLP-1s) positions it competitively. Meanwhile, retention continues to improve, supported by the success of personalized subscriptions, which are inherently stickier and more valuable over time. Management’s long-term outlook is equally ambitious, with guidance for $6.5 billion in revenue and $1.3 billion in adjusted EBITDA by 2030, representing a 21% and 28% CAGR, respectively. If achieved, and applying a 40x EBITDA multiple (reasonable for a high-growth, high-margin disruptor), that translates into a $52 billion market cap—or a $230 stock price, more than 5x today’s value. Even at a 30x multiple, the implied valuation would be $39 billion, or roughly $170 per share.

HIMS also continues to demonstrate discipline on the profitability front. Operating cash flow came in at $109 million with $50 million in free cash flow, nearly covering the entire $59 million CapEx spend in the quarter. Gross margin stood at 73%, slightly below estimates due to mix shift toward lower-margin GLP-1s, but is expected to rebound as economies of scale and product diversification play out. EBITDA margin climbed to 16% this quarter, and while FY25 guidance suggests a pullback to 13%, the long-term trajectory toward 20% appears conservative. Importantly, HIMS is showing that it can fund growth internally, with efficient customer acquisition and improving unit economics. Even after rounding down metrics in a screener—100% revenue growth, 100% FCF growth, and 10% EBITDA margins—HIMS remains essentially unmatched in the market today.

Looking ahead, global expansion is another major opportunity. The company has just launched in the UK, where the broken state of the NHS and high private care costs create a ripe environment for HIMS’s direct-to-consumer, value-based model. With limited local competition and high demand for affordable, accessible care, HIMS could replicate its U.S. success internationally. Altogether, this quarter confirmed HIMS as a rare public-market disruptor—high-growth, profitable, and trading at a steep discount to its long-term potential. The company is not just growing—it’s building a sustainable healthcare platform with an unmatched risk/reward profile.

Hims & Hers Health, Inc. (HIMS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held HIMS at the end of the fourth quarter which was 31 in the previous quarter. While we acknowledge the risk and potential of HIMS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than HIMS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.