Unveiling the Potential of HIMS: A Super Gem in the Stock Market
https://youtu.be/wRMzGpTLwdM?si=F5fK3MiqUDnKViTH
I still find this stock dirt cheap, especially now that we trended back towards 25 bucks. This is a stock that peaked at around 34, and I find it just as compelling as in 2024. I think we're going to have a wonderful 2025. This is my first coverage of HIMS for 2025, so let's dive in!
Financial Overview
HIMS is one of those companies I discovered because it was always cheap on my tracker. It still comes up cheap in my tracker. On my Patreon, I share this extensive spreadsheet with all of these stocks, categorized as "super gems." A super gem for me must:
- Exceed a rule of 40.
- Be inexpensive on Enterprise Value over gross profit over Revenue growth.
- Show outstanding growth (preferably over 30%).
- Have outstanding gross margin profitability.
If you look at the top four stocks, three of them are healthcare stocks, and HIMS is one of the cheapest, trading at 0.1 and achieving a rule of 40 of 66.
Super Gem Status
HIMS stands out as my first third super gem and my second super gem if we exclude Giga Cloud, which many do because of its operations in China. HIMS is really the second cheapest after LifeMD. I also own LifeMD, but HIMS is my biggest position among LifeMD, HIMS, and TransMedics.
Market Disruption
Healthcare disruption is coming, and healthcare stocks like HIMS are very cheap and ignored by the market. Analysts are missing the zero-to-one disruptions happening in the healthcare sector, and HIMS is incredibly disruptive.
Financial Growth and Stability
HIMS is predicted to grow revenues at 53% over the next 12 montHIMS, with a 79% gross margin and a 13% EBITDA margin. You might think revenue growth will slow down, but for HIMS, revenue is actually accelerating.
The stock is trading at 2.56 times forward revenue, making it very cheap on a price-to-revenue and price-to-sales basis. HIMS has an enterprise value roughly the same as its market cap because it carries little to no debt.
Subscription Business Model
HIMS operates on a subscription business model, which is a favorite among investors. Once a sale is made, it becomes recurring revenue. Most of HIMS's revenue is from perpetual treatments, ensuring steady income.
HIMS has 2 million customers, which significantly reduces concentration risk compared to other healthcare companies. This diverse customer base means the company is less affected by policy changes from major customers like Medicare.
Recession-Proof Product
HIMS deals with deeply personal health issues such as ED, hair loss, weight loss, anxiety, and mental health. These issues are recession-proof because people are likely to continue paying for treatments that significantly impact their quality of life.
Competition and Market Position
HIMS's main competition comes from retail pharmacies like Walgreens and CVS, which are struggling. As these competitors close stores, HIMS's market position strengthens. HIMS provides the best product at the lowest cost, following a zero-to-one strategy similar to companies like Gmail, YouTube, and Spotify.
Why HIMS is the Best and Most Affordable Healthcare Solution
Unmatched Affordability
For just $7.99 to $88.99 a month, HIMS provides access to 100 million songs, which is six orders of magnitude cheaper than buying a CD back in 1995. This affordability extends to their healthcare solutions, making it accessible to a broader audience.
Personalized Medication
One of the standout features of HIMS is its ability to offer compounded medications. Approximately half of the users benefit from custom options and treatments. This is made possible through large, highly automated warehouse pharmacies equipped with an AI recommender system. This system calculates the exact milligrams of each active ingredient needed based on the user's weight and specific needs.
The AI Recommender System
The AI recommender system is a game-changer. It ensures that each pill contains the precise amount of medication required. For instance, if a user needs 7.5 milligrams of a particular ingredient, the system can provide that exact dosage, eliminating the need for users to cut pills in half or take incorrect dosages.
Customer-Centric Approach
HIMS's business model is centered around the customer. The company prioritizes the user's convenience and health by offering compounded medications that are personalized. This customer-centric approach is evident on their website, where they emphasize personalized treatments for various health issues, including mental health, sexual health, and skincare.
Example: ED and Heart Health Combo
A prime example of HIMS's personalized approach is their ED and heart health combo pill. This red pill is customized to include the exact amount of tadalafil or sildenafil needed, along with atorvastatin for heart health. This combination ensures that users get the precise treatment they need in a single pill, enhancing their overall well-being.
Simplifying Medication for the Elderly
The elderly often face the challenge of managing multiple medications. HIMS addresses this issue by combining multiple treatments into a single pill. This not only simplifies their medication regimen but also increases the likelihood of adherence, improving their health outcomes.
Cost-Effectiveness Without Insurance
HIMS's model is particularly beneficial for those without insurance or with high-deductible health plans. Traditional healthcare often involves multiple doctor visits and follow-ups, leading to high out-of-pocket expenses. HIMS eliminates these costs by bundling unlimited visits and follow-ups with the cost of medication, making it a more affordable option.
Conclusion
HIMS is revolutionizing the healthcare industry with its affordable, personalized, and customer-centric approach to medication. By leveraging advanced AI technology and a commitment to user convenience, HIMS offers a superior alternative to traditional healthcare models. Whether you have insurance or not, HIMS provides a cost-effective solution that ensures you get the precise treatment you need, enhancing your overall health and well-being.
https://youtu.be/wRMzGpTLwdM?si=F5fK3MiqUDnKViTH
Unveiling the Potential of HIMS: A Super Gem in the Stock Market
https://youtu.be/wRMzGpTLwdM?si=F5fK3MiqUDnKViTH
I still find this stock dirt cheap, especially now that we trended back towards 25 bucks. This is a stock that peaked at around 34, and I find it just as compelling as in 2024. I think we're going to have a wonderful 2025. This is my first coverage of HIMS for 2025, so let's dive in!
Financial Overview
HIMS is one of those companies I discovered because it was always cheap on my tracker. It still comes up cheap in my tracker. On my Patreon, I share this extensive spreadsheet with all of these stocks, categorized as "super gems." A super gem for me must:
If you look at the top four stocks, three of them are healthcare stocks, and HIMS is one of the cheapest, trading at 0.1 and achieving a rule of 40 of 66.
Super Gem Status
HIMS stands out as my first third super gem and my second super gem if we exclude Giga Cloud, which many do because of its operations in China. HIMS is really the second cheapest after LifeMD. I also own LifeMD, but HIMS is my biggest position among LifeMD, HIMS, and TransMedics.
Market Disruption
Healthcare disruption is coming, and healthcare stocks like HIMS are very cheap and ignored by the market. Analysts are missing the zero-to-one disruptions happening in the healthcare sector, and HIMS is incredibly disruptive.
Financial Growth and Stability
HIMS is predicted to grow revenues at 53% over the next 12 montHIMS, with a 79% gross margin and a 13% EBITDA margin. You might think revenue growth will slow down, but for HIMS, revenue is actually accelerating.
The stock is trading at 2.56 times forward revenue, making it very cheap on a price-to-revenue and price-to-sales basis. HIMS has an enterprise value roughly the same as its market cap because it carries little to no debt.
Subscription Business Model
HIMS operates on a subscription business model, which is a favorite among investors. Once a sale is made, it becomes recurring revenue. Most of HIMS's revenue is from perpetual treatments, ensuring steady income.
HIMS has 2 million customers, which significantly reduces concentration risk compared to other healthcare companies. This diverse customer base means the company is less affected by policy changes from major customers like Medicare.
Recession-Proof Product
HIMS deals with deeply personal health issues such as ED, hair loss, weight loss, anxiety, and mental health. These issues are recession-proof because people are likely to continue paying for treatments that significantly impact their quality of life.
Competition and Market Position
HIMS's main competition comes from retail pharmacies like Walgreens and CVS, which are struggling. As these competitors close stores, HIMS's market position strengthens. HIMS provides the best product at the lowest cost, following a zero-to-one strategy similar to companies like Gmail, YouTube, and Spotify.
Why HIMS is the Best and Most Affordable Healthcare Solution
Unmatched Affordability
For just $7.99 to $88.99 a month, HIMS provides access to 100 million songs, which is six orders of magnitude cheaper than buying a CD back in 1995. This affordability extends to their healthcare solutions, making it accessible to a broader audience.
Personalized Medication
One of the standout features of HIMS is its ability to offer compounded medications. Approximately half of the users benefit from custom options and treatments. This is made possible through large, highly automated warehouse pharmacies equipped with an AI recommender system. This system calculates the exact milligrams of each active ingredient needed based on the user's weight and specific needs.
The AI Recommender System
The AI recommender system is a game-changer. It ensures that each pill contains the precise amount of medication required. For instance, if a user needs 7.5 milligrams of a particular ingredient, the system can provide that exact dosage, eliminating the need for users to cut pills in half or take incorrect dosages.
Customer-Centric Approach
HIMS's business model is centered around the customer. The company prioritizes the user's convenience and health by offering compounded medications that are personalized. This customer-centric approach is evident on their website, where they emphasize personalized treatments for various health issues, including mental health, sexual health, and skincare.
Example: ED and Heart Health Combo
A prime example of HIMS's personalized approach is their ED and heart health combo pill. This red pill is customized to include the exact amount of tadalafil or sildenafil needed, along with atorvastatin for heart health. This combination ensures that users get the precise treatment they need in a single pill, enhancing their overall well-being.
Simplifying Medication for the Elderly
The elderly often face the challenge of managing multiple medications. HIMS addresses this issue by combining multiple treatments into a single pill. This not only simplifies their medication regimen but also increases the likelihood of adherence, improving their health outcomes.
Cost-Effectiveness Without Insurance
HIMS's model is particularly beneficial for those without insurance or with high-deductible health plans. Traditional healthcare often involves multiple doctor visits and follow-ups, leading to high out-of-pocket expenses. HIMS eliminates these costs by bundling unlimited visits and follow-ups with the cost of medication, making it a more affordable option.
Conclusion
HIMS is revolutionizing the healthcare industry with its affordable, personalized, and customer-centric approach to medication. By leveraging advanced AI technology and a commitment to user convenience, HIMS offers a superior alternative to traditional healthcare models. Whether you have insurance or not, HIMS provides a cost-effective solution that ensures you get the precise treatment you need, enhancing your overall health and well-being.
https://youtu.be/wRMzGpTLwdM?si=F5fK3MiqUDnKViTH