Wait For A Dip To Buy Hims & Hers Health Stock
Hims & Hers stock (NASDAQ: HIMS) has recently experienced a dramatic recovery, soaring 42% in the past month from around $42 to a current price of $59. This strong surge is largely attributed to the news that a U.S. federal judge dismissed a lawsuit filed by Eli Lilly against a similar telehealth company, Willow Health, on September 2, 2025.
Earlier this year, Eli Lilly had sued Willow Health, along with three other telehealth providers, over the sale of compounded versions of tirzepatide. This is the active ingredient in Lilly’s branded weight-loss drugs, Zepbound and Mounjaro. Hims & Hers itself faces investor class-action complaints and considerable regulatory scrutiny regarding its own compounded GLP-1 drug offerings. The dismissal of the Eli Lilly lawsuit against Willow Health significantly eased investor worries over potential legal and litigation risks for Hims, which was the primary driver of the stock price jump.
The key question now is whether HIMS stock is a buy after its 42% rally. While the company undoubtedly demonstrates strong operating performance and financial condition—as detailed in subsequent analysis—its valuation appears expensive at current price levels following the significant surge.
Our Stock Opinion – HIMS
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Let’s get into details of each of the assessed factors, but before that, for quick background: With $13 Bil in market cap, Hims & Hers Health provides a telehealth platform connecting consumers to licensed professionals, offering non-prescription wellness supplements and medical consultations through direct and wholesale channels.
[1] Valuation Looks Very High
HIMS Stock Valuation
This table highlights how HIMS is valued vs broader market. For more details see: HIMS Valuation Ratios
[2] Growth Is Very Strong
- Hims & Hers Health has seen its top line grow at an average rate of 76.3% over the last 3 years
- Its revenues have grown 89% from $1.1 Bil to $2.0 Bil in the last 12 months
- Also, its quarterly revenues grew 72.6% to $545 Mil in the most recent quarter from $316 Mil a year ago.
HIMS Revenue Growth
This table highlights how HIMS is growing vs broader market. For more details see: HIMS Revenue Comparison
[3] Profitability Appears Weak
- HIMS last 12 month operating income was $126 Mil representing operating margin of 6.2%
- With cash flow margin of 13.0%, it generated nearly $262 Mil in operating cash flow over this period
- For the same period, HIMS generated nearly $194 Mil in net income, suggesting net margin of about 9.6%
HIMS Profitability
This table highlights HIMS profitability vs broader market. For more details see: HIMS Operating Income Comparison
[4] Financial Stability Looks Very Strong
- HIMS Debt was $1.0 Bil at the end of the most recent quarter, while its current Market Cap is $13 Bil. This implies Debt-to-Equity Ratio of 7.9%
- HIMS Cash (including cash equivalents) makes up $1.1 Bil of $1.9 Bil in total Assets. This yields a Cash-to-Assets Ratio of 61.0%
HIMS Financial Stability
[5] Downturn Resilience Is Moderate
HIMS saw an impact slightly better than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered. Also see – Buy or Fear HIMS Stock
2022 Inflation Shock
- HIMS stock fell 87.3% from a high of $24.46 on 8 February 2021 to $3.11 on 11 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 18 June 2024
- Since then, the stock increased to a high of $68.74 on 19 February 2025 , and currently trades at $59.12
HIMS Stock Performance During The 2022 Inflation Shock
2020 COVID-19 Pandemic
- HIMS stock fell 14.7% from a high of $11.75 on 30 September 2020 to $10.02 on 28 October 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 7 December 2020
HIMS Stock Performance During The 2020 COVID-19 Pandemic
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read HIMS Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
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