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KEYPOINTS
Hims & Hers Health Inc (NYSE: HIM), a subscription-based telehealth company, shows promise with strong financials, industry growth, and competitive advantages, but ethical concerns, employee dissatisfaction, and product liability risks warrant caution.
Despite its attractive valuation and growth prospects, Hims & Hers faces potential legal and financial repercussions due to its manufacturing of compounded medications that are not FDA-approved.
The company's business model, which seems designed to encourage increased medication use, raises ethical concerns in a society with a growing dependence on prescription drugs.
Table of Contents
In my quest to diversify my portfolio, I stumbled upon Hims & Hers Health Inc (NYSE: HIM), a young, subscription-based telehealth company offering personalized treatments for men's and women's health concerns.
Initially, I was intrigued. Hims & Hers seemed to check many of my investment boxes:
Apparent Strengths:
Valuation:
Attractive PS ratio of 5x, especially considering its past highs.
The telehealth industry is booming, with an expected 9% annual growth rate for the next few years (Source: Statista).
Impressive Revenue Outlook/ Guidance:
Hims & Hers boasts a stellar 57% average outlook revenue growth rate over the past three years, they expect Revenue growth for the full financial year to be growing at 59% from the last year, a standout among the many companies I've researched.
