Hims & Hers Health (HIMS): Buy, Sell, or Hold Post Q2 Earnings?

September 16, 2025 at 00:03 AM EDT

HIMS Cover Image

The past six months have been a windfall for Hims & Hers Health’s shareholders. The company’s stock price has jumped 55.7%, hitting $54 per share. This run-up might have investors contemplating their next move.

Is now still a good time to buy HIMS? Or is this a case of a company fueled by heightened investor enthusiasm? Find out in our full research report, it’s free.

Why Does HIMS Stock Spark Debate?

Originally launched with a focus on stigmatized conditions like hair loss and sexual health, Hims & Hers Health (NYSE: HIMS) operates a consumer-focused telehealth platform that connects patients with healthcare providers for prescriptions and wellness products.

Two Positive Attributes:

1. Customer Base Skyrockets, Fueling Growth Opportunities

Revenue growth can be broken down into the number of customers and the average spend per customer. Both are important because an increasing customer base leads to more upselling opportunities while the revenue per customer shows how successful a company was in executing its upselling strategy.

Hims & Hers Health’s total customers punched in at 2.44 million in the latest quarter, and over the last two years, their count averaged 43.3% year-on-year growth. This performance was fantastic, reflecting its ability to "land" new contracts and potentially "expand" them later - a powerful one-two punch for sales. Hims & Hers Health Total Customers

2. New Investments Bear Fruit as ROIC Jumps

A company’s ROIC, or return on invested capital, shows how much operating profit it makes compared to the money it has raised (debt and equity).

We like to invest in businesses with high returns, but the trend in a company’s ROIC is what often surprises the market and moves the stock price. Over the last few years, Hims & Hers Health’s ROIC has increased. This is a good sign, but we recognize its lack of profitable growth during the COVID era was the primary reason for the change.

One Reason to be Careful:

Previous Growth Initiatives Have Lost Money

Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity).

Although Hims & Hers Health has shown solid business quality lately, it struggled to grow profitably in the past. Its five-year average ROIC was negative 11.6%, meaning management lost money while trying to expand the business.

Final Judgment

Hims & Hers Health’s positive characteristics outweigh the negatives, and after the recent rally, the stock trades at 44.1× forward P/E (or $54 per share). Is now the time to initiate a position? See for yourself in our full research report, it’s free.

Stocks We Like Even More Than Hims & Hers Health

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