Hims & Hers Health Inc (HIMS, Financial), a company operating within the consumer packaged goods industry, has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $2.12 billion, the stock is trading at $9.98. Over the past week, HIMS has seen a 5.08% decline in its stock price. However, looking at a broader timeframe, the stock has gained an impressive 17.68% over the past three months. This growth is reflected in the company's GF Value, which currently stands at $12.26, up from a past GF Value of $11.5. According to GuruFocus, HIMS is currently modestly undervalued, a positive shift from its previous status of being significantly undervalued.
Introduction to Hims & Hers Health Inc
Hims & Hers Health Inc is a multi-specialty telehealth platform that connects consumers with licensed healthcare professionals. The company provides access to high-quality medical care for a variety of conditions, including mental health, sexual health, dermatology, and primary care. This innovative approach to healthcare has positioned HIMS as a key player in the telehealth industry, which has seen significant growth in recent years. 
Assessing Profitability
Despite the recent stock performance, HIMS's Profitability Rank is relatively low at 2 out of 10. The company's operating margin stands at -5.13%, which is better than 17.49% of 1,870 companies in the same industry. Its Return on Equity (ROE) is -11.27%, surpassing 13.99% of its peers, while the Return on Assets (ROA) is -9.25%, outperforming 13.05% of competitors. The Return on Invested Capital (ROIC) is at -26.00%, which is higher than 7.64% of industry companies. These figures suggest that while HIMS is not leading in profitability, it is performing better than a portion of its industry counterparts. 
Growth Trajectory
When it comes to growth, HIMS has shown promising signs. The company's 3-Year Revenue Growth Rate per Share is 2.70%, which is better than 35.08% of 1,722 companies in the same industry. More impressively, the 3-Year EPS without NRI Growth Rate is 46.50%, outperforming 82.8% of 1,430 companies. This indicates that HIMS is growing at a faster pace than many of its industry peers, which could be a contributing factor to its recent stock price rally. 
Notable Shareholders
Among the notable shareholders of HIMS, Howard Marks (Trades, Portfolio) leads with 1,053,214 shares, representing a 0.5% share percentage. Following him is Jim Simons (Trades, Portfolio), holding 650,173 shares or 0.31% of the company, and Chuck Royce (Trades, Portfolio) with 200,000 shares, accounting for 0.09%. These significant investments by well-known investors could signal confidence in the company's future prospects.
Competitive Landscape
Comparing HIMS to its competitors, we see a wide range in market capitalizations. EOS Inc (EOSS, Financial) has a market cap of $14.396 million, Nu Skin Enterprises Inc (NUS, Financial) is valued at $623.197 million, and European Wax Center Inc (EWCZ, Financial) stands at $698.887 million. HIMS's larger market cap suggests a stronger position in the market relative to these competitors.
Conclusion
In summary, Hims & Hers Health Inc's stock performance has been a mixed bag with a recent dip but a significant gain over the past three months. The company's valuation has improved from significantly undervalued to modestly undervalued, reflecting a positive market sentiment. Despite a low Profitability Rank, HIMS has shown better profitability metrics than a significant number of its industry peers. Growth rates in revenue and EPS are robust, indicating a strong upward trajectory. The confidence of notable shareholders and a competitive market position relative to its peers further bolster the company's standing. As HIMS continues to navigate the dynamic telehealth market, investors will be watching closely to see if its growth and profitability can sustain the positive momentum in its stock price.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
