August 2025 Recap: A 29% Surge
A little over a month ago, I covered Hims & Hers stock and rated it a buy on August 5, 2025. Since then, the share price has climbed nearly 29%, prompting a fresh look at this telehealth and wellness company’s valuation.
I track all my buy, hold, or sell recommendations in a public spreadsheet so you can follow along with my ratings and see how they’ve performed over time. As of that August rating, Hims & Hers joined the buy column, and the recent rally has put it firmly on my radar again.
Before diving into the numbers, a quick thanks to The Motley Fool for sponsoring this analysis. For their list of the ten best stocks to buy now, visit fool.com/parkkev.
Now, let’s evaluate whether Hims & Hers still warrants a buy at today’s higher prices, or if it’s time to move to hold.
Tracking Growth: From $100 M to $2 B in Five Years
One of the most impressive aspects of Hims & Hers has been its revenue trajectory. From 2020 to 2025, annual revenue skyrocketed from $100 million to $2 billion, translating to a compounded annual growth rate (CAGR) of 79%. That kind of explosive growth is rare in direct-to-consumer healthcare.
Even more encouraging is management’s disclosure that revenue and customer counts are climbing even when you strip out the more volatile weight-loss offerings. Against a backdrop of legal challenges from Novo Nordisk over copycat treatments, the core business continues to expand.
This resilience suggests that Hims & Hers has built a scalable subscription model and brand loyalty that extends beyond any single product. Core offerings such as hair loss treatments, skincare, and mental wellness subscriptions remain in high demand.
| Metric |
2020 |
2025 |
CAGR 2020–25 |
| Annual Revenue |
$100 M |
$2 B |
79% |
| Customer Growth (excluding WL)* |
Rising |
Rising |
— |
*WL = weight-loss treatments
Margin Expansion and Economies of Scale
Profitability has also turned the corner. In the trailing 12-month period, Hims & Hers reported a 6.5% operating profit margin, compared to a negative 39% in 2021. That swing reflects both strong top-line momentum and disciplined expense management.
Sales and marketing remain the largest expense line, but digital advertising costs tend to fall as a company gains scale. Hims & Hers is leveraging that dynamic: larger marketing budgets now yield better customer acquisition costs relative to long-term subscriber value.
On the manufacturing side, investments in expanded production capabilities are lowering per-unit costs. As the company grows, it negotiates bulk ingredients and manufacturing contracts at more favorable rates, further boosting margins.
The result is a two-pronged catalyst for improved profitability: marketing efficiency and production leverage. Together, they underpin higher returns on invested capital.
| Metric |
2021 |
Trailing 12 Months |
| Operating Profit Margin |
-39% |
6.5% |
| Return on Invested Capital |
— |
43.3% |
| Weighted Average Cost of Capital |
— |
15.4% |
Valuation: Intrinsic Value vs. Current Price
My updated discounted cash flow model pegs Hims & Hers intrinsic value at $45.81 per share. At the current market price of $57.70—after the latest 25% run—it’s trading above that fair-value estimate, even before applying a margin of safety.
Looking at earnings multiples, the forward price-to-earnings (P/E) ratio sits at 79. For context, the stock traded closer to a forward P/E of 30 in May, drifted under 50 at the start of the year, spiked toward 125, then retraced back down to 30, and now has climbed again near 80.
This roller-coaster valuation has driven multiple rating changes this year. When the P/E dipped into value territory, I upgraded to buy. As it surged into expensive land, I downgraded to hold. Today’s metrics suggest it’s richly valued compared to historical norms.
| Valuation Metric |
May 2025 |
Start of 2025 |
Peak (2025) |
Now (Sept 2025) |
| Forward P/E |
30 |
<50 |
~125 |
79 |
| Intrinsic Value per Share |
— |
— |
— |
$45.81 |
| Current Market Price |
— |
— |
— |
$57.70 |
Historical Recommendations and Track Record
Transparency in track record matters. A volatile stock like Hims & Hers demands agility in recommendation changes. So far, my shifts between buy and hold based on valuation swings have aligned well with subsequent price action.
On August 5, 2025, I rated shares a buy when the forward P/E hovered in value territory. The nearly 30% gain since then validates that call in the short term. But repeating the same playbook today might be chasing momentum rather than investing at a discount.
Risks Around Weight-Loss Treatments
Any investment thesis for Hims & Hers must account for regulatory and legal uncertainties around its weight-loss treatments. Novo Nordisk filed claims alleging unauthorized copycat formulations. Resolution of those disputes could impact revenue near term.
Even if Hims & Hers ultimately prevails, the litigation footprint and potential injunctions introduce execution risk. This legal overhang compounds the argument against chasing current prices.
Final Verdict and Recommendation
Hims & Hers remains a standout growth story, with:
- Explosive revenue growth and strong core customer expansion
- Rapid margin improvement driven by scale
- Exceptional returns on invested capital vs. cost of capital
However, the stock is trading well above fair value estimates, and key product lines face legal uncertainty. For those reasons, Hold reflects the best balance between long-term potential and current valuation risk.
If you believe the stock is a Buy, watch for a pullback closer to intrinsic value or a contraction in forward P/E. If you lean toward a Sell, consider partial profits and reallocation into cheaper growth names.
Recommendation: Hold
I’m also thrilled to announce my new book, which delves into the exact framework I use for stock evaluation. It covers why I like certain names and how I decide between buy, hold, or sell.
https://youtu.be/yz18jLN6WxI?si=dIM6UKuaEV074ncU
Here are five telehealth- and digital-health peers to HIMS, each linked to their investor-relations page, with symbols pointing to StockBossUp and why they stack up better than HIMS:
| Company |
Symbol |
Why It’s Better Than HIMS |
| Teladoc Health, Inc. |
TDOC |
Global telemedicine leader with diversified service lines and positive free cash flow |
| GoodRx Holdings, Inc. |
GDRX |
Profitable platform with strong subscription economics and rapidly growing telehealth revenues |
| Amwell Corp. |
AMWL |
Deep partnerships with major health systems and scalable technology stack driving higher margins |
| Natera, Inc. |
NTRA |
Robust diagnostics business with stronger consensus upside and higher institutional ownership |
| Guardant Health, Inc. |
GH |
High-growth oncology testing platform with superior gross margins and proven reimbursement model |
August 2025 Recap: A 29% Surge
A little over a month ago, I covered Hims & Hers stock and rated it a buy on August 5, 2025. Since then, the share price has climbed nearly 29%, prompting a fresh look at this telehealth and wellness company’s valuation.
I track all my buy, hold, or sell recommendations in a public spreadsheet so you can follow along with my ratings and see how they’ve performed over time. As of that August rating, Hims & Hers joined the buy column, and the recent rally has put it firmly on my radar again.
Before diving into the numbers, a quick thanks to The Motley Fool for sponsoring this analysis. For their list of the ten best stocks to buy now, visit fool.com/parkkev.
Now, let’s evaluate whether Hims & Hers still warrants a buy at today’s higher prices, or if it’s time to move to hold.
Tracking Growth: From $100 M to $2 B in Five Years
One of the most impressive aspects of Hims & Hers has been its revenue trajectory. From 2020 to 2025, annual revenue skyrocketed from $100 million to $2 billion, translating to a compounded annual growth rate (CAGR) of 79%. That kind of explosive growth is rare in direct-to-consumer healthcare.
Even more encouraging is management’s disclosure that revenue and customer counts are climbing even when you strip out the more volatile weight-loss offerings. Against a backdrop of legal challenges from Novo Nordisk over copycat treatments, the core business continues to expand.
This resilience suggests that Hims & Hers has built a scalable subscription model and brand loyalty that extends beyond any single product. Core offerings such as hair loss treatments, skincare, and mental wellness subscriptions remain in high demand.
*WL = weight-loss treatments
Margin Expansion and Economies of Scale
Profitability has also turned the corner. In the trailing 12-month period, Hims & Hers reported a 6.5% operating profit margin, compared to a negative 39% in 2021. That swing reflects both strong top-line momentum and disciplined expense management.
Sales and marketing remain the largest expense line, but digital advertising costs tend to fall as a company gains scale. Hims & Hers is leveraging that dynamic: larger marketing budgets now yield better customer acquisition costs relative to long-term subscriber value.
On the manufacturing side, investments in expanded production capabilities are lowering per-unit costs. As the company grows, it negotiates bulk ingredients and manufacturing contracts at more favorable rates, further boosting margins.
The result is a two-pronged catalyst for improved profitability: marketing efficiency and production leverage. Together, they underpin higher returns on invested capital.
Valuation: Intrinsic Value vs. Current Price
My updated discounted cash flow model pegs Hims & Hers intrinsic value at $45.81 per share. At the current market price of $57.70—after the latest 25% run—it’s trading above that fair-value estimate, even before applying a margin of safety.
Looking at earnings multiples, the forward price-to-earnings (P/E) ratio sits at 79. For context, the stock traded closer to a forward P/E of 30 in May, drifted under 50 at the start of the year, spiked toward 125, then retraced back down to 30, and now has climbed again near 80.
This roller-coaster valuation has driven multiple rating changes this year. When the P/E dipped into value territory, I upgraded to buy. As it surged into expensive land, I downgraded to hold. Today’s metrics suggest it’s richly valued compared to historical norms.
Historical Recommendations and Track Record
Transparency in track record matters. A volatile stock like Hims & Hers demands agility in recommendation changes. So far, my shifts between buy and hold based on valuation swings have aligned well with subsequent price action.
On August 5, 2025, I rated shares a buy when the forward P/E hovered in value territory. The nearly 30% gain since then validates that call in the short term. But repeating the same playbook today might be chasing momentum rather than investing at a discount.
Risks Around Weight-Loss Treatments
Any investment thesis for Hims & Hers must account for regulatory and legal uncertainties around its weight-loss treatments. Novo Nordisk filed claims alleging unauthorized copycat formulations. Resolution of those disputes could impact revenue near term.
Even if Hims & Hers ultimately prevails, the litigation footprint and potential injunctions introduce execution risk. This legal overhang compounds the argument against chasing current prices.
Final Verdict and Recommendation
Hims & Hers remains a standout growth story, with:
However, the stock is trading well above fair value estimates, and key product lines face legal uncertainty. For those reasons, Hold reflects the best balance between long-term potential and current valuation risk.
If you believe the stock is a Buy, watch for a pullback closer to intrinsic value or a contraction in forward P/E. If you lean toward a Sell, consider partial profits and reallocation into cheaper growth names.
Recommendation: Hold
I’m also thrilled to announce my new book, which delves into the exact framework I use for stock evaluation. It covers why I like certain names and how I decide between buy, hold, or sell.
https://youtu.be/yz18jLN6WxI?si=dIM6UKuaEV074ncU
Here are five telehealth- and digital-health peers to HIMS, each linked to their investor-relations page, with symbols pointing to StockBossUp and why they stack up better than HIMS: